What is one of the exclusions found in a standard equipment breakdown policy?

In a standard equipment breakdown policy, one of the common exclusions is wear and tear. This is important because such policies are designed to cover sudden and accidental breakdowns of machinery and equipment, rather than the gradual decline in condition due to ordinary use over time.

Wear and tear refers to the natural deterioration that occurs as equipment is used, which is expected in the lifecycle of any machine. Insurance policies typically do not cover damages arising from this type of deterioration because they are considered part of normal business risk. The focus is on insuring against unexpected failures that are not due to the inherent aging or failure of machinery over time. Thus, recognizing wear and tear as an exclusion helps to define the parameters of coverage provided under an equipment breakdown policy.

Other options, such as natural disasters and lack of maintenance, also present valid exclusions but are treated differently in the context of specific policies. Natural disasters may be addressed under other specific policies like property insurance, while lack of maintenance might lead to claims being denied if the breakdown is directly tied to neglect, rather than an unexpected event. Mechanical breakdowns are usually the very occurrences the policy is meant to cover, thus not listed as an exclusion.