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Property & Machinery Breakdown

Why do three of the top five hospitals in the United States rely on Chubb’s Property and Machinery Breakdown policies? Simple: Our deep understanding of this dynamic industry has helped us create state-of-the-art property and machinery breakdown insurance policies that address the many exposures facing the health care industry, bringing peace of mind and security.

Customer Profile

We insure a variety of health care facilities that demonstrate strong risk management and loss prevention practices. These include:

  • General and Medical Hospitals
  • Community and Regional Hospitals
  • Teaching Hospitals
  • Children’s Hospitals
  • Specialty Hospitals
  • Nursing Homes

Product Highlights

Chubb's state-of-the-art property product, Customarq Classic, sets the standard with its modular format and range of options. Chubb is able to offer significant property capacity for larger hospital facilities. The Customarq Classic property policy automatically includes the three machinery breakdown perils — electric arcing, mechanical breakdown and steam explosion. Machinery Breakdown insurance can also be purchased on a stand-alone basis when Chubb is not providing the property policy.

Key features of Chubb’s Customarq Classic property policy designed specifically for hospitals include:

  • An automatic $500,000 blanket limit that allows a hospital to use insurance dollars where they are needed most following a loss. It applies to the following property coverages:
    • Accounts Receivable
    • Consequential Loss
    • Electronic Data Processing Property
    • Extra Expense
    • Fine Arts
    • Fire Department Service Charges
    • Leasehold Interest: Undamaged Tenant’s Improvements and Betterments
    • Outdoor Trees, Shrubs, Plants or Lawns
    • Personal Property of Employees
    • Valuable Papers

  • Protection for broad “all-risk” property/income perils
    • Water damage, including surface water, backup of sewers or drains, seepage through basement and pipe burst
    • Electric arcing, mechanical breakdown, steam explosion
    • Spoilage, change in temperature/humidity
    • Ordinance or law

  • Property valuation that covers cost of replacement at the same or another site, ordinance or law, customs duties, brands and labels, extended warranties, and undamaged tenant improvements and betterments.

  • A personal property limit that includes the personal property of others.

  • Business income insurance that includes a $250,000 limit for worldwide dependent business premises and a $250,000 limit for up to 180 days for newly acquired premises.

  • A debris removal addition that provides a limit of 25% of the direct damage loss, plus an additional $500,000 at premises, $50,000 at any other location and $50,000 in transit.

Service and Strength

Long recognized for delivering superior service, Chubb supports policyholders through its global network of loss control and claim professionals. A dedicated boiler and machinery claim unit specifically addresses losses resulting from mechanical breakdown, electric arcing and steam explosion. For hospitals with highly valued properties and a serious commitment to loss prevention, we offer assistance with site selection and plan review; consultation on installation, maintenance and testing of fire protection systems; security assessment and analysis; infrared scanning of electrical systems; on-site seminars and the use of Chubb's Fire Protection Training Center.

Our financial strength continues to earn high ratings from A.M. Best, Standard & Poor's and Moody's, leading evaluators of insurance companies. This financial strength, combined with our underwriting expertise and claim service, means you can count on Chubb to be there when you need us most.

Learn more about:

  • Chubb's products - Please contact your insurance agent or broker; use our Find an Agent tool to locate an agent or broker near you.
  • Claims - Please go to Chubb's Claims Services.
  • Chubb's press releases, awards, advertising and more - Please go to About Chubb.