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Top-to-Bottom Insurance for Nursing Homes, Assisted Living Includes Equipment Breakdown

Chris Murray
Posted on: April 25, 2017 by Chris Murray

As specialists in insuring nursing homes and assisted living facilities, Caitlin Morgan provides end-to-end insurance solutions that include General Liability, Professional Liability, Employment Practices Liability, Directors & Officers Liability, Commercial Property, and Workers’ Compensation. Part of our Property portfolio of insurance products is Equipment Breakdown coverage, critical to protecting the continued operations of today’s nursing homes and assisted living facilities, which use technology and equipment to improve the quality of care and comfort to residents.

Nursing homes and assisted living facilities depend on many types of electrical, mechanical and computer-controlled equipment to support facility operations. Indeed, electrical breakdown is the most frequent type of loss. Because of this, many facilities are equipped with emergency generators to support critical functions during electrical service interruptions. However, additional electric-generating capacity creates even more opportunities for equipment breakdown. These hazards include electrical arcing of generator windings and mechanical damage to diesel engine push rods and exhaust valves. An improperly cleared electrical arc can destroy circuit breakers, motors and electrical control equipment utilized to support facility operations. This can lead to significant property damage and interruption of normal operations for days until repairs can be made or replacements can be installed.

In addition, building support equipment such as boilers and HVAC equipment provide the comfort nursing home and assisted living residents expect. Although this equipment is considered reliable, it is also highly susceptible to breaking down, resulting in the need to make alternative living arrangements for residents or the use of rental equipment while repairs can be made or replacements are installed before the facility is operating back to normal.

Equipment Breakdown insurance provides coverage for mechanical breakdown, short circuits/electrical arcing, power surges, motor burnout and operator error. This coverage will respond and pay for losses to covered equipment, which may include mechanical equipment, much of which is computer-generated today; electrical distribution systems; and heating and cooling systems.  Equipment Breakdown insurance covers the cost of direct physical property loss, which is the cost to repair or replace your damaged equipment; costs associated with the time and labor to repair or replace your equipment; other expenses incurred to limit the loss or speed the business restoration; the loss value of materials; and business recovery expenses. In addition, most jurisdictions require boilers and pressure vessels to be inspected by a qualified inspector, and these services are provided at no charge as part of Equipment Breakdown coverage. These inspections, when conducted by state inspectors or a fee-for-service inspection agency, can run as high as $500 per inspection, plus the additional certificate fee.

For more information about our insurance solutions for nursing homes and assisted living facilities, including Property and Equipment Breakdown coverage, contact Caitlin Morgan at 877.226.1027.

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Posted in: Commercial Property