 |
June 2007 |  |
 |
||
 |
 |
 |
 |
 |
 | ||||
Air Conditioning Breakdowns Can Leave Your Clients Feeling Burned
HSB's Equipment Coverage Pays for Repairs, Lost Income, and More
With the summer heating up, a high-rise office center lost its air
conditioning when a power cable shorted out and damaged pumps and motors.
It was the Fourth of July and it wouldn't be easy to complete repairs.
Crews worked through the holiday as parts, labor and extra expense pushed
the paid loss to $119,256.OPEN FOR BUSINESS
HSB covered the repairs under the building owner's property insurance policy, which included our equipment breakdown program. Air conditioning was restored by July 5, when employees of corporate tenants returned to work in the building.
AC LOSSES ON THE RISE
The hot weather months are the peak season for air conditioning losses. HSB claim data shows the average number of breakdowns is greatest from June through August and spikes in July when temperatures are warmest in most locations.
View this chart of AC breakdowns reported by month.
POWER SURGES, BROKEN PARTS
Most AC breakdowns result from electrical damage to driving motors and broken mechanical parts in compressors. HSB's claim analysis found that power surges and other electrical line disturbances are a primary cause of loss.
A COMMON EXPOSURE
AC losses can top $100,000 or more in large buildings such as office towers, medical facilities and shopping centers. Breakdowns are also costly for smaller businesses, restaurants, or homes with built-in air conditioning systems.
Click here for examples of typical air conditioning claims paid by HSB.
LOST INCOME, EXTRA EXPENSE
Equipment damage is only part of the exposure. Air conditioning breakdowns can result in large business interruption losses as customers go elsewhere, a company must close, or issue discounts and refunds. Other expenses may include rental equipment and the relocation of employees or residents.
HSB COVERS VITAL EQUIPMENT
Air conditioning has become basic equipment in the workplace and the home. The systems rely on many parts that can break down. HSB has been insuring air conditioning equipment in businesses for decades. Now, we use our knowledge and experience to protect homeowners as well.
INTERACTIVE INFORMATION
Visit the interactive HSB IQ feature on our website and click on different classes of business to see how they rely on air conditioning - and how they're exposed. For information, contact HSB toll-free at 1-800-345-1122.
