In equipment breakdown coverage, when are all accidents considered a single accident?

In equipment breakdown coverage, all accidents are considered a single accident when they occur at a single location at the same time and from the same cause. This definition is important because it helps to streamline the claims process. By grouping related incidents that stem from one cause at the same location, the insurer can manage the potential for losses and limit the liability associated with multiple claims that arise from the same event.

This approach also reflects the potential for the underlying issue causing the breakdown to be addressed more efficiently, as it recognizes the interconnectedness of these incidents. If several pieces of equipment fail due to a common issue—such as a power surge—it makes sense to treat them as one incident against the policy limits instead of tallying each failure separately.

The other scenarios described do not fit this criteria, as they introduce variables that could lead to multiple distinct claims, increasing both the complexity and the costs associated with the claims process. For example, considering accidents at different locations or over extended periods introduces factors unrelated to a singular cause at a single site, which does not fall under the definition used in this coverage.