Reliability Insurance---When It Is Practical

The components of industrial and commercial power distribution systems are subject to electrical breakdown. There are many factors which affect the exposure and the severity of the accident. The potential can be minimized by utilizing quality appratus well-suited for the application, adequately maintained, properly protected, and a well-organized safety practice. Never-theless, serious electrical breakdowns do occur to cause major financial losses. Most corporations have found it practical to insure, at least to some degree, to guarantee financial reliability. The various forms of casualty insurance applicable to power distribution systems are discussed. The all-inclusive broad coverage form of casualty insurance incorporating a reasonably large deductible feature is the most common type of contract. A progressive corporation relies on effective maintenance to minimize the preventable types of electrical breakdowns.