He goes on to outline a number of issues that need to be investigated when contemplating equipment breakdown coverage. This does vary from form to form. Many old forms exclude certain types of equipment such as elevators and escalators, for example. Safety devices also may be excluded. Computers are covered differently depending on the policy form.
Many policies limit what is covered.
There may be a restriction based on the distance of the service from the insured, for example. This is especially important when buying equipment breakdown coverage as a separate monoline policy. Many companies offer it as part of the package. MacGougan concludes that what is most important is that companies be aware of their potential exposure to losses from equipment breakdowns, both on-site and off. At the very least, agents need to make certain they provide their clients with information about this coverage.