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How does Blanket Breakdown work?
Blanket Breakdown is an endorsement to your Sovereign property
policy, and gives you protection for loss from the following perils:
- electric arcing and artificially generated electric currents
- mechanical breakdown
- explosion of boilers and certain types of pressure vessels,
steam piping, steam turbines, steam engines, and gas turbines
- damage to internal components of boilers and pressure vessels.
Those boiler and machinery coverages which are traditionally
on a separate form become an integral part of your Sovereign Property
policy.
We don't have a boiler to worry about
so, do we need to worry at all?
Blanket Breakdown is a whole lot more than boiler coverage. While
it covers boilers and pressure vessels, it also covers:
- air conditioning motors, compressors, systems, and piping
- computers and data processing equipment
- electric cable, wiring, panel boards, switch gear, and transformers
- engines, motors, compressors, turbines, pumps, fans, blowers,
and generators
- telephones and communication, sound, lighting, and video equipment
- equipment and machinery not excluded by your property policy
and Blanket Breakdown
Even if you don't have a boiler, you undoubtedly have or depend
on some of this equipment which can cause you a loss, should it
break down.
If we buy Blanket Breakdown, should we cancel
our present boiler and machinery policy?
Very likely you will be able to cancel your present boiler and
machinery policy. Blanket Breakdown is generally broader than traditional
boiler and machinery coverage.
Your present boiler and machinery policy will duplicate some
of the coverage provided by Blanket Breakdown. Since you can only
collect for the loss once, you should not pay for the coverage
twice.
We urge you to compare your present boiler and machinery policy
to Blanket Breakdown. We believe you will find that Blanket Breakdown
provides you superior protection, and is the coverage you should
keep.
Is Blanket Breakdown expensive?
The cost of an average mechanical and electrical breakdown for
small business owners is around $3,000 but breakdowns that exceed
$50,000 are common. You would have to accumulate several decades
of premium savings before putting aside enough to pay for just
one routine breakdown.
Compare your exposure to the nominal cost for this coverage and
we think you'll agree that you really can't afford to be without
this protection.
Who will provide our loss control and claim
service?
The Sovereign is partnering with Boiler Inspection and Insurance
Company, a leading boiler and machinery insurer, to provide Blanket
Breakdown.
Representatives from B.I. & I. will make, where needed, the
boiler and pressure vessel inspections. B.I. & I. representatives
may also investigate losses, but final settlement will come from
The Sovereign.
The Sovereign is one of the major commercial insurers in Canada,
dealing exclusively with independent brokers. It is
also a member of The Co-operators group of companies, giving
it access to resources one would expect from the leading
Canadian-owned multi-product insurance company.
The Sovereign General is headquartered in Calgary, Alberta,
with branch offices in major centres from coast to coast.
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Is your business dependent on electricity,
heating, air conditioning, telephones and computers?
Many different mechanical and electrical devices, from small
to large, work in harmony to help you run your business smoothly
and profitably. The breakdown of even one small component can cost
you loss of income, extra expense to continue operations, spoilage
of perishable goods, and an expensive repair bill.
Blanket Breakdown protects you from the financial consequences
of a mechanical or electrical breakdown loss.
Your insurance program is not complete
unless you have Blanket Breakdown!
Following are examples of common non-catastrophic losses that
are covered by Blanket Breakdown:
- Electric arcing to motor windings of a 5 ton air conditioning
unit that services a small convenience store; $3,500 repair cost,
5 days for repairs. A 20 ton unit for a larger store suffering
similar damage could cost $12,000 to repair.
- Electrical burnout to a 200 AMP panel board for a small one
story office building; $5,000 repair cost, 7 day repair time.
- Power surge to a telephone system for a real estate office;
$2,500 repair cost, 3 day repair time.
- Damage to internal components of a computerized cash register
used in a restaurant; $3,000 repair cost, 10 day repair time.
- Overheating and cracking of sections of a cast iron boiler
used to heat a medium size apartment building; $19,000 repair
cost, 7 day repair time.
With Blanket Breakdown, you don't have to worry about how to
pay for these unexpected repair bills. You won't have to draw on
budgetary reserves, incur debt, nor postpone making an important
capital expenditure.
Blanket Breakdown also gives you:
- Protection for a catastrophic steam boiler explosion. Fortunately
these disasters are very rare but they still happen and are excluded
causes of loss under your regular property policy.
- Inspection service which will satisfy boiler and pressure
vessel inspection laws in those provinces that will accept insurance
company inspections, namely Ontario, Quebec, and Prince Edward
Island. We provide this service to you at no additional cost.
You must still pay the province for the certificate fees and
must have the province inspect your equipment if they don't accept
an insurance company inspection.
- Coverage for Time Element losses, to the extent provided under
your Sovereign property policy. Any Business Interruption or
Extra Expense coverage provided by your Sovereign policy automatically
includes Blanket Breakdown.
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