Risk Management

Claims Process

All potential Equipment Breakdown losses should be submitted to Nationwide using the normal claim reporting process. The Nationwide claim handler will make the initial contact with the customer and explain the claim process, including that an HSB claim representative will contact them, and investigate the claim on behalf of Nationwide, and request that the insured cooperate with HSB in all aspects of the investigation. The Nationwide claim handler will then refer the claim to HSB.

Within one business day of receiving the claim from Nationwide, HSB’s claims representative will call the customer to document the loss details, explain the claims process, and begin the investigation, including the contact information for the customer’s repair technician as applicable. The HSB claims representative will complete the investigation with the customer’s repair firm, and if necessary, may require the customer’s assistance with obtaining information from the repair firm.

Most claim investigations can be handled virtually, but a physical inspection may be required if additional details are needed to complete the investigation. If a physical inspection is required, the on-site inspection may be completed by HSB or a third party consultant.

While the customer may be eager to repair or replace their equipment, they should be aware that if they choose to do so before the conclusion of the claim investigation, they must save all parts for possible inspection. To help expedite the investigation, the customer should have their repair technician thoroughly document all physical damage, including the cause of the damage, along with their written recommendation for repair or replacement. It is also helpful to provide photos of the specific damage and the manufacturer’s nameplate to identify the equipment.

In the event of a covered loss where it is determined that repair of the equipment or its component parts is possible, the extent of liability under the endorsement will be limited to the lesser of the cost to replace or make reasonable repairs The customer should be encouraged to obtain multiple quotes or estimates.

Once the investigation is complete, the HSB claims representative will advise the Nationwide claim handler of the investigation findings and coverage determination, including the amount of the recommended payment, if the loss is covered. Nationwide will issue all claim payments directly to the customer. The customer is responsible for payment to their repair firm.

If HSB determines that the claim is not a covered loss under the Equipment Breakdown Coverage, the claim will be referred back to the Nationwide claim handler, along with a coverage denial recommendation letter issued to Nationwide, who will review the claim for any potential coverage under the underlying Nationwide policy. The final claim disposition will be made by the Nationwide claim handler, who will then communicate the outcome to the customer both verbally and in writing