Stephen Maloney
03-22-2013, 2:29 AM
A couple months ago I had my first serious problem with my laser. One minute it was firing, the next minute it wasn't.
[See:http://www.sawmillcreek.org/showthread.php?197729]
257872
As it turns out, my RF control board failed. For those of you who may not know, the RF control board for this type of laser sits under the panel in the tube to the right in the picture below--the panel is held on by 28 screws.
257873
At this point, my laser had just turned 3, and I was a year out of warranty. The laser appeared to still be at full strength, which is why I was surprised when it suddenly failed. After talking to Epilog and ordering a replacement Out of curiosity, I called my insurance agency. The first person I spoke with agreed with me that this would probably not be covered, but she put me through to my agent's voicemail anyway.
A day later I got a call, and was pleasantly surprised to find out the incident may be covered under my Mechanical Breakdown coverage. Mechanical breakdown is a special endorsement, and is not (typically?) part of a standard commercial policy. It reads something like this:
MECHANICAL BREAKDOWN
1. Under A. COVERAGE, 4. Additional Coverages the following Additional Coverage is added:
Mechanical Breakdown
We shall pay for direct physical loss of or damage to Covered Property described in the Declarations caused by any of the following:
a. Artificially generated electrical current, including arcing, that disturbs electrical devices, appliances or wires; and
b. Mechanical breakdown, including rupture or bursting caused by centrifugal force;
which occurs on or within 1,000 feet of the premises described in the Declarations.
By the time I heard back from my agent I had already sent in the laser tube to Epilog, and so all I had was the pictures I took. I sent these, along with a PDF of a "Laser Service Pre-Report", which I asked Epilog to send me (it basically confirms the laser tube was dead), and a copy of the invoice to my agent. Within a week my claim was approved and a check was cut for the cost of a new tube minus my deductible. ($1600 - $250 = $1350).
My chief concern was whether filing this claim would significantly affect my insurance rate. My agent and an underwriter I know have assured me that any increase should be minimal. I've had the policy for 3 years and no other claims. Please keep in mind, your millage will vary, as everyone's policy, insurance company, and business is different! Mine is chiefly a hobby business I run on the side while attending law school. $1600 was a pretty big hit, and it was worth me filing the claim. If you have a more stable business with large cash reserves, you might chose to eat it rather than risk an increase in premiums. Talk to your agent.
One more tidbit of advice I received was that comercial policies are not like auto or homeowners, which are typically computed strictly by formula. Commercial policies are reviewed individually by an underwriter each time they are renewed. Typically 60-90 days before they are set to renew. Taking steps to prevent a reoccurrence can go a long way to keeping your rates down. In my case, I've sense upgraded to 250V power and added a line conditioner [See:http://www.amazon.com/gp/product/B00007FHDI/]. I'll be submitting this information later this year when my policy is up for renewal.
I hope some of you find this post useful!
Stephen
[SIZE=1]This post is not intended to be, nor should it be interpreted as, legal advice, or as predicting a certain outcome. Again, your results will vary depending on the circumstances of your situation. Talk with your insurance agent or consult with an attorney if you have questions about interpreting the language of your policy.
[See:http://www.sawmillcreek.org/showthread.php?197729]
257872
As it turns out, my RF control board failed. For those of you who may not know, the RF control board for this type of laser sits under the panel in the tube to the right in the picture below--the panel is held on by 28 screws.
257873
At this point, my laser had just turned 3, and I was a year out of warranty. The laser appeared to still be at full strength, which is why I was surprised when it suddenly failed. After talking to Epilog and ordering a replacement Out of curiosity, I called my insurance agency. The first person I spoke with agreed with me that this would probably not be covered, but she put me through to my agent's voicemail anyway.
A day later I got a call, and was pleasantly surprised to find out the incident may be covered under my Mechanical Breakdown coverage. Mechanical breakdown is a special endorsement, and is not (typically?) part of a standard commercial policy. It reads something like this:
MECHANICAL BREAKDOWN
1. Under A. COVERAGE, 4. Additional Coverages the following Additional Coverage is added:
Mechanical Breakdown
We shall pay for direct physical loss of or damage to Covered Property described in the Declarations caused by any of the following:
a. Artificially generated electrical current, including arcing, that disturbs electrical devices, appliances or wires; and
b. Mechanical breakdown, including rupture or bursting caused by centrifugal force;
which occurs on or within 1,000 feet of the premises described in the Declarations.
By the time I heard back from my agent I had already sent in the laser tube to Epilog, and so all I had was the pictures I took. I sent these, along with a PDF of a "Laser Service Pre-Report", which I asked Epilog to send me (it basically confirms the laser tube was dead), and a copy of the invoice to my agent. Within a week my claim was approved and a check was cut for the cost of a new tube minus my deductible. ($1600 - $250 = $1350).
My chief concern was whether filing this claim would significantly affect my insurance rate. My agent and an underwriter I know have assured me that any increase should be minimal. I've had the policy for 3 years and no other claims. Please keep in mind, your millage will vary, as everyone's policy, insurance company, and business is different! Mine is chiefly a hobby business I run on the side while attending law school. $1600 was a pretty big hit, and it was worth me filing the claim. If you have a more stable business with large cash reserves, you might chose to eat it rather than risk an increase in premiums. Talk to your agent.
One more tidbit of advice I received was that comercial policies are not like auto or homeowners, which are typically computed strictly by formula. Commercial policies are reviewed individually by an underwriter each time they are renewed. Typically 60-90 days before they are set to renew. Taking steps to prevent a reoccurrence can go a long way to keeping your rates down. In my case, I've sense upgraded to 250V power and added a line conditioner [See:http://www.amazon.com/gp/product/B00007FHDI/]. I'll be submitting this information later this year when my policy is up for renewal.
I hope some of you find this post useful!
Stephen
[SIZE=1]This post is not intended to be, nor should it be interpreted as, legal advice, or as predicting a certain outcome. Again, your results will vary depending on the circumstances of your situation. Talk with your insurance agent or consult with an attorney if you have questions about interpreting the language of your policy.