Mechanical Breakdown coverage (AKA Boiler & Machinery) can be added to most Property Insurance policies for a small additional charge. The standard Property Insurance forms exclude losses due to artificially generated electrical power surges or power shortages. However, coverage for these losses can be restored by adding the Mechanical Breakdown endorsement to Property policies.

Losses to the wiring within buildings and sensitive computer and electrical equipment due to surges, blackouts, and brownouts is expected to increase due to electrical grid problems. In addition, these same types of surges, blackouts, and brownouts are responsible for over 9% of fires in commercial buildings according to NFPA.

The electrical power grid system is being strained due to its age, increasing use of power by equipment, and lack of maintenance and repair due to tight budgets.

Source: Whistle Stop, Winter 2009, Hartford Steam Boiler