A single blanket limit inclusive of real property, personal property, business interruption, and boiler and machinery provides clients with optimum flexibility during large losses.
Health care clients often have single locations with significant real property, personal property and business interruption exposures. AFM offers clients a single blanket policy limit inclusive of these three types of insurable interests. This provides hospitals and nursing homes with optimum flexibility during a large loss.
For example, rather than limiting business interruption to the values reported at a location, clients can use the entire policy limit to cover the costs of repairing damages and recovering business interruption losses.
The proVision Health Care form also includes embedded machinery and equipment breakdown coverage. This includes coverage for expensive medical equipment like MRI machines, linear accelerators and building mechanicals.
Sublimits: Traditional machinery and equipment breakdown policies limit coverage for spoilage, ammonia contamination and hazardous substances. The proVision policy removes these coverage limitations. In addition, expediting expense coverage, typically only found in M&E policies, is included in the all-risk policy, extending this coverage to losses beyond just those that are M&E-related.
Broad definition of covered property: M&E policies typically have to name the type of property insured, such as fired and unfired pressure vessels, electrical equipment, mechanical equipment and production equipment. By including M&E in the all-risk platform, it broadens coverage to all types of property unless otherwise excluded.
Broadened cause of loss wording: The insured causes of loss for an M&E policy are generally limited to losses caused by accidents directly to the machinery or equipment. By embedding M&E coverage into an all-risk form, clients receive broadened coverage for all sudden and accidental events of physical loss or damage unless otherwise excluded.
Joint loss agreements: When there are separate property and M&E policies and an M&E event causes damage to property outside of the scope of the M&E policy, there can be complications in settling the claim between the M&E carrier and the all-risk property carrier. These complications are removed when it is all insured under the same policy.