Insurance
Property
Equipment
Breakdown
Critical Equipment Reliability Report
While all equipment plays an important role within
a production line, do you know which equipment
is most critical? Do you recognize where your
bottlenecks are and understand the financial
impact critical equipment failure can have on your
business?
XL Catlin supports its clients utilizing a newly designed
Critical Equipment Reliability Report. Our risk engineers
evaluate equipment and services essential in maintaining
sustainable levels of production with a focus on maximizing
process reliability and reducing interruptions that could result
in supply chain disruptions.
Equipment Assessment Categories
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Availability rates
Condition monitoring
Predictive and preventive maintenance practices
Evaluation of diagnostic results
Business continuity planning (BCP)
Key Performance Indicators – Corrective Action
Recommendations
Equipment and/or services deemed critical to production
receive a reliability rating based upon equipment specific key
performance indicators (KPI’s) sourced from several industry
and OEM standards.
When key performance indicators have not been met,
we provide a corrective action recommendation with
applicable references and sourced standards. We provide
recommendations and summarize the assessment of the
Critical Objects and Services into three categories:
• Highly Reliable
• Reliable
• Not Reliable
Recommendations:
• For any KPI that is not met, we provide a corrective action
recommendation with applicable references and sourced
standards.
• Resulting reliability ratings and offered recommendations
can provide a useful tool for plant managers and
department heads when allocating resources effectively to
increase or maintain supply chain reliability.
Benefits of the Critical Equipment Reliability Report
The report provides value for all levels of an organization from
CFO to risk manager and plant manager.
Equipment reliability ratings coupled with corrective action
recommendations provide a useful tool for plant managers
and department heads when allocating resources to
effectively achieve or maintain Best in Class production and
availability rates.
Report Format
The report leads with an overview of results including
identification of equipment and services deemed critical to
production, with associated reliability ratings.
• The overview is supported with detailed information
for each piece of equipment assessed including a
description of its function within the process, equipment
specific probable maximum and maximum foreseeable
loss scenarios, key performance indicators used
in the assessment plus resultant corrective action
recommendations
• Location level probable maximum and maximum
foreseeable loss scenarios calculated
• A summary of corrective action recommendations
Read On
See the reverse side for a few loss scenarios that show how
our Critical Equipment Reliability Report can help ensure
process reliability and protect your bottom line.
Equipment Breakdown Loss Scenarios
Risk Description: Forest Products
Risk Description: Food Processor
One of the key performance indicators associated with steam
turbine generators is confirmation that weekly testing of
emergency lube oil pumps is occurring.
One of the key performance indicators associated with
transformers is the calibration of protective relays. A
protective relay operates to protect the transformer from a
power surge originating from a supplying utility.
Problem Identified: During an onsite assessment, our risk
engineer requested that the DC oil pump be tested. The
pump failed to operate due to an improperly installed fuse.
A recommendation was made to change the operating logic
to bypass the fuse. The insured found this to be sound
engineering advice and promptly complied.
Potential Loss Avoided: Two months later, the steam turbine
came off line unexpectedly and the DC oil pump operated
properly. Damage to the turbine was averted with an
approximate savings of $5,000,000.
Problem Identified: During an on site assessment, our risk
engineer requested that a relay be tested and it failed to
isolate the transformer. A recommendation was made to
calibrate the relay.
Potential Loss Avoided: It was determined that this
transformer was critical to production and powered
refrigeration systems providing cooling for perishable food
items in storage. The probable maximum loss scenario
centered on the failure of this transformer, was determined to
include physical damage to the transformer itself, a 60% loss
of production and product spoilage involving 50% of food in
storage.
Talk to us. We can help with your equipment breakdown risks.
Your XL Catlin Equipment Breakdown Team
Brian Strain
Head of Equipment Breakdown
Phone +1 312 444 6599
Brian.Strain@xlcatlin.com
Rich Hajduk
Underwriter: Mid Atlantic, Midwest
Phone +1 312 821 8895
Richard.Hajduk@xlcatlin.com
Cheryl Geidel
Underwriter: West + Program Underwriting
Phone +1 704 780 0412
Cheryl.Geidel@xlcatlin.com
Chris Lee
Underwriter: Northeast, Southeast
Phone +1 212 915 6719
Christopher.Lee@xlcatlin.com
Tom Gallagher
Engineering Leader
Phone +1 603 863 5665
Tom.Gallagher@xlcatlin.com
Jimmy Tran
Underwriter: Canada
Phone +1 604 697 6910
Jimmy.Tran@xlcatlin.com
Kyle Markowitz
Equipment Breakdown Claims
Phone +1 212 915 6528
Kyle.Markowitz@xlcatlin.com
Cindy Fernandez
Underwriter: Midwest
Phone +1 312 821 8879
Cindy.Fernandez@xlcatlin.com
Venus Newton
Boiler & Property Consulting, LLC
Senior VP, Jurisdictional Inspection Services
Phone +1 404 710 8624
Venus.Newton@boilerproperty.com
................................
MAKE YOUR WORLD GO
xlcatlin.com
The information contained herein is intended for informational purposes only. Insurance coverage in any particular case will
depend upon the type of policy in effect, the terms, conditions and exclusions in any such policy, and the facts of each unique
situation. No representation is made that any specific insurance coverage would apply in the circumstances outlined herein.
Please refer to the individual policy forms for specific coverage details.
XL Catlin is the global brand used by XL Group Ltd’s (re)insurance subsidiaries. In the US, the insurance companies of XL Group
Ltd are: Catlin Indemnity Company, Catlin Insurance Company, Inc., Catlin Specialty Insurance Company, Greenwich
Insurance Company, Indian Harbor Insurance Company, XL Insurance America, Inc., XL Insurance Company of New York, Inc.,
and XL Specialty Insurance Company. In Canada, coverages are underwritten by XL Specialty Insurance Company—Canadian
Branch. Coverages may also be underwritten by Lloyd’s Syndicate #2003. Coverages underwritten by Lloyd’s Syndicate
#2003 are placed on behalf of the member of Syndicate #2003 by Catlin Canada Inc. Lloyd’s ratings are independent of XL
Catlin. Coverage may not be available in all jurisdictions. Not all of the insurers do business in all jurisdictions, nor is coverage
available in all jurisdictions. Information accurate as of September 2016.
XL Catlin, the XL Catlin logo and Make Your World Go are registered trademarks of XL Group Ltd companies
5529_09/2016
Amy Fox
Underwriter: Midwest, Southwest, West
Phone +1 314 973 4608
Amy.Fox@xlcatlin.com