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 applies when a claim is made under this type of coverage, which is designed to protect against loss or damage from equipment breakdowns, such as mechanical failures or electrical failures.

Choosing $500 as the standard deductible reflects a balance that ensures policyholders share some level of financial responsibility in the event of a loss, while also offering substantial coverage for potential damages. Lower deductibles, like $0 or $250, may be available but often come with higher premiums, making the $500 deductible a common choice that many insurers provide in their policies.

This deductible helps to mitigate minor claims, allowing insurers to focus on more significant losses, which also aids in keeping premiums more affordable for policyholders in the long run.