What is the standard deductible on an Equipment Breakdown Protection Coverage Form?

The standard deductible on an Equipment Breakdown Protection Coverage Form is typically set at $500. This deductible amount indicates the portion of a loss that the insured must pay out of pocket before the insurance coverage kicks in to cover the remainder of the loss. Equipment Breakdown Protection is designed to cover damages resulting from mechanical breakdowns, electrical failures, and other related incidents that standard property insurance may not cover.

Having a $500 deductible strikes a balance between affordability for the insured and the risk that the insurer assumes. Higher deductibles may reduce insurance premiums but result in more significant out-of-pocket expenses during a claim, while lower deductibles increase premiums. Thus, the $500 standard reflects industry norms that facilitate effective risk management for both insurers and policyholders.