1. Forms
  2. EB
  3. EB-00-20

What it does

EB 00 20 is the coverage form of ISO's Equipment Breakdown Protection program, the successor to the boiler and machinery program. It pays for loss caused by a "breakdown" of "covered equipment" – mechanical and electrical machinery, pressure equipment such as boilers, and similar equipment – including damage to the equipment itself and to other covered property. Before the EB numbering, the same form was BM 00 20 (07 01 edition), and the older Boiler and Machinery Coverage Form was BM 00 25.

Key provisions

  • Coverage is organized as separate coverages activated on the declarations (EB DS 07): property damage, expediting expense, business income and extra expense (or extra expense only), spoilage, utility interruption, newly acquired premises, ordinance or law, errors and omissions, brands and labels, and contingent business income.
  • One breakdown limit applies per breakdown; separate limits can be shown for individual coverages or "Included" entered to share the breakdown limit.
  • Deductibles can be dollar, time, multiple of daily value or percentage of loss.
  • Conditions include the insurer's right to suspend coverage on unsafe equipment and a joint or disputed loss agreement for disputes between the property and equipment breakdown insurers.

Who needs it

Any business whose operations depend on equipment: manufacturers, restaurants and grocery stores (refrigeration), apartment and office buildings (boilers, HVAC, elevators), hospitals and data-dependent offices. The commercial property causes of loss forms exclude most mechanical and electrical breakdown, so this coverage fills that gap. BOP accounts get equipment breakdown as an Optional Coverage inside BP 00 03 instead.

Quoting and selling notes

  • Ask about boilers and pressure vessels (many states require jurisdictional inspections), critical production equipment, refrigeration and spare parts.
  • Match business income and spoilage limits to the client's dependence on equipment; set the time deductible thoughtfully.
  • Many carriers write equipment breakdown on proprietary forms or through specialty reinsurers rather than EB 00 20.

Related forms

EB DS 07 Declarations; EB DS 09 Renewal Endorsement; BOP optional coverage in BP 00 03.