Skip to Content

Equipment Breakdown

Insurance provider: AAI Limited trading as Vero Insurance

This insurance is included in the Group Insurance / Risk Program and the cost to access this cover is included in the rate charged to Lutheran facilities upon renewal of their insurance program.

Breakdown

What is insured?

Covers sudden and accidental breakdown of an item of Equipment that is owned, leased, operated or controlled by an insured. Equipment is defined as pressure plant, mechanical, hydraulic or electrical machine/apparatus or equipment or electronic equipment (eg. air conditioning units, refrigerators/freezers, pumps, etc).

Maximum Sum Insured: $10,000,000

Expediting Expenses: The reasonable and necessary extra costs to make temporary repairs or expedite permanent repairs

Temporary Hire Costs: up to $25,000 or 50% of the normal cost of repairs or replacement, whichever lesser

Electronic Data Restoration: $500,000

Excess: $2,500 each and every claim.

 

Spoilage

What is insured?

Spoilage or deterioration of food, food products and non-alcoholic beverages under refrigeration, as a result of a Breakdown, including the cost of disposal of said products.

Maximum Sum Insured: $15,000

Excess: 10% of the loss, with a minimum of $500 each and every claim

Business Interruption: Additional Expenses

What is insured?

If your business is interrupted or interfered with solely as a result of a Breakdown of an item of Equipment, additional costs to continue operating are covered, including the cost to use other equipment and other necessary emergency expenses.

Maximum Sum Insured: $10,000,000 (Combined Limit - Breakdown + Additional Expenses)

Additional increased cost of working: $75,000

Indemnity period: 12 months

Excess: first 48 hours of interruption

Major exclusions

  • Corrosion, erosion of material or the need to clean any component, wear & tear, etc
  • Vehicles, locomotive or rolling stock, watercraft, aircraft power, mobile plant & equipment
  • Loss of Gross Profit or Gross Rentals
  • Portable items during Transit or Temporary Removal to another premises
  • Alcoholic Beverages under refrigeration
  • Destruction, distortion, erasure, corruption, alteration or misinterpretation or misappropriation of Electronic Data or error in creating, amending, entering, deleting or using Electronic Data.

Need to make a claim?

  1. You should contactus immediately if your claim will exceed the policy excess, as the insurer may wish to appoint an Assessor. The assessor's role is to act on behalf of the insurer and help the client with the claim until finalised. Do not proceed with repairs/replacements unless LCA Insurance or Assessors have given prior approval.
  2. Prevent further loss - for example, get ice for a cool room, move stock to a different cool room or use spare equipment
  3. Preserve evidence - do not dispose of parts, equipment or stock without the insurer’s prior knowledge or consent
  4. Seek out the lowest cost for repair or replacement

5. Complete an Equipment Breakdown Claim Form and email it to LCA Insurance together with relevant documentation.

Please note that this website only provides a summary of coverage. More detailed information is available by contacting LCA Insurance directly. The insurer's policy wordings will take precedence over information contained in this website.

Policies