The major portion of the premium for an equipment breakdown policy primarily covers what aspect?

The major portion of the premium for an equipment breakdown policy primarily covers inspections and examinations. This aspect is crucial because equipment breakdown insurance is designed to address the risks associated with the failure of machinery and equipment, which can lead to significant losses if not detected early.

Regular inspections and examinations help ascertain the condition of the equipment, identify potential issues before they lead to breakdowns, and ensure that necessary preventive measures are in place. This proactive approach minimizes the likelihood of costly repairs and operational downtime. Therefore, the premium primarily reflects the importance of maintaining equipment in optimal condition and reducing risk through thorough assessments, rather than focusing solely on the replacement of equipment or coverage for liabilities and business interruptions, which are typically addressed under different types of coverage.