What Is Boiler & Machinery Coverage?

Boiler and machinery coverage is insurance against equipment breakdown that is typically not covered by property insurance policies, warranties and service contracts. Coverage includes losses incurred from the failure of boilers, pressure vessels and a variety of mechanical and electrical equipment.

Cover

Property insurance policies typically do not cover the cost of boiler or machinery repair, or physical damage or spoilage in the surrounding area. Similarly, warranties and service contracts do not cover operator error, which accounts for 35 percent of breakdowns. Boiler and machinery coverage covers all of these eventualities.

Business Interruption

The rupture, or explosion, of a boiler or the breakdown of machinery may cause not only physical damage but also loss of income. Boiler and machinery coverage typically includes, or can be extended to include, business interruption coverage.

Inspection

Many boiler and machinery insurance policies require that equipment is inspected, cleaned and maintained in accordance with local, state and federal regulations. This, in itself, can improve efficiency and extend the lifetime of equipment.

References

• The Insurance & Planning Resource Center: Boiler and Machinery Coverage
• AUMA: Boiler & Machinery