ADJUSTERS INTERNAT IONAL . COM 7 A D J U S T I N G T O D A Y 16. A delay in or the interruption of any business, manufacturing or processing activity, except as provided by the business income or extra expense, extra expense only or utility interruption coverages. 17. With respect to when business income or extra expense, extra expense only or utility interruption coverage apply, there is no coverage if the business could not or would not have been carried on if the breakdown had not occurred, or the named insured failed to use due diligence and dispatch and all reasonable means to continue operation as normally as practicable. 18. Any indirect loss following breakdown that results from lack or excess power, light, heat, steam or refrigeration, except to the extent that business income or extra expense or extra expense only or utility interruption coverage applies. 19. With respect to utility interruption coverage, any loss resulting from the following: acts of sabotage, collapse, deliberate acts of load shedding, freezing, impact of aircraft, missile or vehicle, lightning, riot, civil commotion, vandalism, sinkhole collapse, smoke or weight of snow, ice or sleet. 20. Any indirect result of break- down to covered equipment, except to the extent coverage is being provided for one or more of the time element coverages. 21. Neglect by the named insured to use all reasonable means to save and preserve covered property from further damage at and after the time of loss. (This type of an exclusion has been in existence since the 1800s and also can be troublesome to insureds.) Limits of Insurance The base limit, as has been mentioned, is $500,000, which can and should be increased considering that in the worse case scenario of an explosion with a building or structure, that amount will not go very far. If any persons were to sustain injuries and surrounding property of others is damaged or destroyed, coverage would apply under the named insured’s commercial general liability and umbrella liability policies. Unless a higher limit or “INCLUDED” is shown in the declarations, the most the insurer will pay for direct damage as a result of a breakdown to covered equipment is $25,000 for each of the following: A) Ammonia contamination. Ammonia can spoil property that is contaminated. In fact, these types of losses occur fairly regularly. When they do occur, the policy will also pay for any salvage expense. B) Consequential loss. If part of a product is physically damaged and the rest is unusable, cover‑ age will apply for the reduction in value of the undamaged portion of the product. C) Data and media. Coverage applies for the cost to research, replace or restore damaged “data” or “media” as defined in the policy, including the cost to reprogram instructions used in any computer equipment. D) Hazardous substance. Additional cost incurred over and above the amount the insurer would have paid if no hazardous substance had been involved in the loss, when the insured has to clean-up, repair, replace or dispose of covered property. E) Damage to covered property by water and salvage expenses to property are covered, except leakage from sprinklers or domestic water piping. If fungus, dry rot or wet rot results from such covered water damage, loss or damage attributable to fungus, dry rot or wet rot will not be limited as noted in the exclusions section. Such coverage will, however, be part of the water damage limit. Deductibles The base deductible is $500 and applies to any one breakdown. Furthermore, the deductible applies separately to each applicable coverage, except if: 1. A deductible is shown as COMBINED with any of the coverages. When this applies, the insurer will first subtract the combined deductible amount from the aggregate amount of any loss to which the combined deductible applies; or 2. More than one covered equipment is involved in any one breakdown. If this is the case, the highest one deductible shall apply to each of the applicable coverages. The deductibles that can potentially apply are dollar deductibles, time deductibles, a multiple of a daily value deductible, or percentage of loss deductible.
RkJQdWJsaXNoZXIy NjIxNjMz