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Endorsements Used to Modify the Equipment Breakdown Protection Coverage Form

Summary: In 2007, Insurance Services Office changed the named of the Boiler and Machinery program to Equipment Breakdown. This was done to more clearly emphasize the broadness of the coverage provided by the program. The program contains miscellaneous endorsements used to modify the equipment breakdown property damage forms. The endorsements are described in alphabetical order. Following is a brief description of each form.

Alphabetical Guide to Endorsements: Actual cash value EB 99 59 Amendment of declarations EB 99 51 Covered equipment deductible waiver EB 99 62 Limited coverage for specified equipment EB 99 56 Off-premises equipment coverage EB 99 63 Optional valuation coverage EB 99 64 Pressure or vacuum equipment EB 99 55 Product withdrawal coverage EB 99 65 Production machinery exclusion EB 99 57 Refrigeration interruption coverage EB 15 39 Solidification coverage EB 99 66 Spare equipment and parts EB 99 58 Suspension/reinstatement of coverage EB 99 60 System installation coverage EB 99 67 Turbine units explosion coverage EB 99 52 Valuation of specified property EB 99 61

Actual Cash Value EB 99 59

When an insured or the insurer—for underwriting reasons on older equipment—wishes to insure property loss by covered accidents on an actual cash value (ACV) basis rather than at full replacement cost, endorsement EB 99 59 09 07 is used. The endorsement contains a schedule of locations and covered equipment to be insured for ACV. Under this endorsement, the insurer agrees to pay the amount spent by the named insured to repair or replace covered property that is directly damaged by a breakdown. The payment will be the lesser of: the cost to repair or replace the damaged property with property of same kind, capacity, size or quality; or actual cash value of the damaged property.

The valuation of covered property will be as of the time of breakdown. And, the insurer will not pay for damaged property that is obsolete and useless to the named insured.

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