What type of failure can occur if insulation breaks down?

When insulation breaks down, one significant consequence is the occurrence of current leakage, which can lead to potential electric shock hazards. Insulation serves as a barrier that prevents electrical current from escaping its intended path, ensuring safe operation of electrical systems. When this insulation fails, it allows electrical current to leak, potentially energizing non-current-carrying metal parts or surfaces. This leakage not only poses risks of electric shock to anyone coming into contact but can also result in short circuits, which can cause equipment damage and electrical fires.

In contrast, completing circuit protection failure would imply a complete breakdown of all safety mechanisms, which may not directly stem from insulation breakdown. Improved electrical performance is contrary to the adverse effects of insulation failure, as compromised insulation would typically degrade performance rather than enhance it. Lastly, claiming there's no effect on circuit functionality neglects the basic principle that insulation is critical for safe and efficient operation; its failure has direct and severe implications for the electrical system.