Boiler and Machinery Insurance: Protecting Your Equipment and Assets

Protecting your equipment and assets is crucial to the success of your business, and boiler and machinery insurance is a vital part of that protection.

Boiler and machinery insurance policies can cover a wide range of equipment, including boilers, pumps, and other machinery that are essential to your operations.

Most policies cover equipment failure due to mechanical breakdown, but some policies may also cover damage caused by external factors like natural disasters or vandalism.

By investing in boiler and machinery insurance, you can ensure that your business is protected against unexpected equipment failures and other unforeseen events.

Boiler and machinery insurance provides coverage for physical damage to and financial loss from equipment breakdown. This type of insurance is also known as equipment breakdown insurance.

It covers the cost of repairing or replacing the damaged equipment. This can include a wide range of equipment besides boilers and furnaces.

Boiler and machinery insurance can also cover business losses incurred from the equipment not functioning. This is crucial for businesses that rely on their equipment to deliver goods and provide services.

Companies purchase this type of insurance to protect equipment much in the same way as property insurance protects buildings.

Boiler and machinery insurance provides essential coverage for businesses that rely on equipment to operate. This type of insurance is also known as equipment breakdown insurance.

Equipment breakdown insurance can cover losses due to business interruptions related to damaged or broken equipment. It can also cover physical damage to equipment, as well as temporary business shutdowns due to malfunctioning or broken equipment.

Boiler and machinery insurance can cover a wide range of hazards, including mechanical breakdown, electrical malfunction, artificially generated electrical current, explosions, internal malfunction of a system, and user error. It can also cover lightning-induced power surges.

Most equipment breakdown policies broadly define the covered equipment, so almost all equipment that is owned, leased, or operated by a company is covered. This includes mechanical breakdown, technology, electrical issues, air control, and business losses from equipment malfunction.

Here are some examples of equipment that boiler and machinery insurance can cover:

Boiler and machinery insurance is a specialty insurance that can be purchased by manufacturing companies, as well as other industries. It's essential to understand what types of equipment are covered and what's not, so it's best to work with an independent insurance agent to get the policy you need.

Boiler and machinery insurance covers a wide range of equipment, including boilers, turbines, and hot water heaters. Electrical equipment, transformers, and voltage regulators are also typically covered. This insurance policy can also cover refrigeration equipment, air conditioning equipment, telephones, and networks.

The policy can cover mechanical breakdown, electrical malfunction, artificially generated electrical current, explosions, internal malfunction of a system, and lightning-induced power surges. This includes motors, generators, elevators, water pumps, and specialized production and manufacturing equipment.

Some examples of equipment covered by boiler and machinery insurance include:

This list is not exhaustive, but it gives you an idea of the types of equipment that are typically covered by boiler and machinery insurance.

Equipment breakdown is a critical aspect of equipment and coverage. Boiler and machinery insurance can protect your business against losses due to equipment damage or breakdown.

Equipment breakdown insurance typically covers losses due to business interruptions related to damaged or broken equipment. This includes mechanical breakdown, technology failure, electrical issues, air control problems, and business losses from equipment malfunction.

Some examples of equipment covered by boiler and machinery insurance include boilers, turbines, hot water heaters, compressors, electric motors, and electrical equipment. This can also include refrigeration equipment, air conditioning equipment, telephones, and networks.

The types of damage covered by boiler and machinery insurance include mechanical breakdown, electrical malfunction, artificially generated electrical current, explosions, internal malfunction, and user error. Lightning-induced power surges are also covered.

Here are some examples of equipment that can be covered by boiler and machinery insurance:

Keep in mind that the specific equipment and damage covered by boiler and machinery insurance can vary depending on the policy and provider.

When choosing add-on covers, you have several options to consider.

Air Freight is one of the add-on covers that can be opted for.

Express Freight (excluding Air Freight), Overtime and Holiday Wages is another option.

You can also opt for Insured’s Own Surrounding Property.

Escalation of sum insured is also available as an add-on cover.

Third Party Liability is another important add-on cover that can be opted for.

Here are some of the add-on covers that can be opted for:

You can also opt for Airfreight as an add-on cover.

Express freight (excluding airfreight), Overtime and Holiday rates of wages is another option.

Owner’s Surrounding Property is also available as an add-on cover.

Additional Customs Duty is another important add-on cover that can be opted for.

Here are some of the add-on covers that can be opted for:

It's worth noting that the above list is indicative in nature and not exhaustive.

You can also opt for Express freight (excluding air freight), overtime and holiday rates of wages as an add-on cover.

Air freight is another option.

Owner’s surrounding property is also available as an add-on cover.

Clearance and removal of debris is another important add-on cover that can be opted for.

Additional customs duty is another option.

Escalation is another add-on cover that can be opted for.

Third party Liability is another important add-on cover that can be opted for.

Here are some of the add-on covers that can be opted for:

The cost of boiler and machinery insurance can vary considerably based on your business's industry and other factors. The type and location of your business, the types of equipment used, annual revenue, and claims history are all taken into account.

The cost of boiler and machinery insurance can range depending on the specifics of your business. An independent insurance agent can help you compare quotes for affordable boiler and machinery insurance.

Boiler and machinery insurance provides financial relief in various ways. It covers costs to repair or replace damaged equipment, including labor costs and parts.

Boiler and machinery insurance also covers lost revenue or income due to downtime or damage done to equipment. This can be a significant cost for businesses that rely on continuous operations.

Here is a breakdown of some of the costs that boiler and machinery insurance can cover:

The cost of boiler and machinery insurance can vary significantly based on your business's industry.

The type and location of your business are among the most common factors that can influence your coverage costs.

Your business's annual revenue also plays a role in determining the cost of your equipment breakdown insurance.

The types of equipment and machinery used by your business are another crucial factor in calculating your coverage costs.

A business with a history of claims will likely have higher insurance costs compared to one with a clean claims history.

An independent insurance agent can help you compare quotes for affordable boiler and machinery insurance near you.

Having a Boiler and Machinery (BM) insurance policy can be a game-changer for businesses.

Boiler and machinery insurance coverage extends beyond just repairing damaged equipment, it also makes the company financially whole for any losses or costs as a result of the equipment damage.

Costs to repair or replace damaged equipment, including labor costs and parts, are typically covered by a BM policy.

Lost revenue or income due to downtime or damage done to equipment is another financial relief provided by a BM policy.

Spoiled inventory or covering the cost of replacing perishable goods, which can occur due to failed refrigeration equipment, is also covered by a BM policy.

Any costs that were incurred as a result of the time it took to repair the equipment and restore business operations are also included in the financial relief provided by a BM policy.

Here are some of the key financial benefits of having a BM insurance policy: