What action can an insurer of an equipment breakdown policy take if equipment is found to be unsafe?

An insurer of an equipment breakdown policy has the authority to immediately suspend coverage on any piece of equipment deemed unsafe. This action is justified because continuing coverage on unsafe equipment exposes the insurer to significant risk, especially if that equipment were to cause further damage or injury. When equipment is found to be unsafe, it becomes a liability concern; thus, the insurer must protect its interests and potentially mitigate losses.

Suspending coverage ensures that the insurer is not liable for any incidents that occur while the equipment remains in an unsafe condition. This measure also encourages the insured to address and rectify the issues surrounding the equipment, ensuring compliance with safety standards. By taking such decisive action, the insurer fosters a safer operating environment and reduces the likelihood of future claims associated with equipment breakdowns.