Electrical Panel Electrical Panels are an integral element of the electrical distribution system. Both the building and individual stores will have an electrical panel. Electrical systems are, unfortunately, infrequently maintained. The frequent cycling on and off of electrical loads creates heating and cooling which can loosen connections and cause electrical arcing (or short circuits). It is an incorrect assumption to think that circuit breakers in an electrical panel will prevent any damage to the electrical system. Many electrical arcing events that cause significant damage occur over a period of time when lower level arcing (below the threshold that trips a circuit breaker) generate enough heat to gradually destroy electrical cable insulation. Because it goes undetected, the damage can extend over much of the electrical cable structure. When the cable insulation is finally completely deteriorated, cables come into contact (frequently at a corner where they are closer) and the arcing rises to a high level that trips circuit breakers but by then the damage is already done. Arcing (or short circuits) will not only damage the electrical system, but will also cause the electrical service to be interrupted to all areas on the circuit and thus may result in a business interruption. © 2004 The Hartford Steam Boiler Insurance and Inspection Company.     All rights reserved.