Alabama Property and Casualty Practice Exam

Which of the following would NOT be covered by Equipment Breakdown coverage?

1. Boilers

2. Air conditioning units

3. Toilets

4. Electrical panels

The correct answer is: Toilets

Equipment Breakdown coverage is designed to protect businesses and property owners from financial losses due to the failure of various types of machinery and equipment due to mechanical breakdown, electrical failure, or explosion. This type of coverage typically includes large machinery and systems that are critical to the operation of a business. Boilers, air conditioning units, and electrical panels are all examples of equipment that would generally be covered under Equipment Breakdown coverage. These systems are integral to many business operations and can incur significant repair or replacement costs if they malfunction. In contrast, toilets do not typically fall within the scope of Equipment Breakdown coverage. While they are plumbing fixtures essential for facility operation, they are not considered 'equipment' in the same sense as boilers or electrical panels. Toilets are usually covered under a different type of insurance policy, such as property insurance, which pertains to the physical structure and contents rather than specialized equipment used for specific functions. Therefore, toilets would not be included under the Equipment Breakdown coverage, making them the correct answer to the question.