Boiler & Machinery Coverages

The most common hurdle in recommending "Boiler and Machinery" coverage is the remark "I don't have a boiler!".  A client does not need to have a boiler to need what is more accurately called Equipment Breakdown coverage. Today's businesses, institutions and public entities depend upon a wide array of electrical, mechanical and computerized equipment. Equipment coverage can protect organizations from loss that occurs to many types of equipment - not just boilers.  (refer to the associated documents at the bottom of the page for a series of graphic claims examples)

Equipment Breakdown coverage can apply to many types of equipment, including:

• electrical distribution system
• air conditioning and refrigeration (including refrigerants)
• ventilation systems
• fired storage water heaters
• boilers and pressure vessels
• BX (multi-line) phone systems
• medical diagnostic and treatment equipments
• security and fire detection systems
• production machinery
• computer controlled machines
• fans, motors and pumps
• computers
• cash registers and inventory control systems
• washers and laundry equipment
• kitchen equipment, ovens and stoves
• furnaces
• organs and other sound systems
• photocopiers

Why do I need it?  The costs of breakdown can be significant and these breakdowns occur often enough for there to be a legitimate risk to your profits and your business. 

 What type of breakdowns are covered?   These are the unique hazards to which equipment is subject to such as: short circuits, electrical arcing, electrical burnout, mechanical breakdown and centrifugal force. Equipment breakdown insurance covers these risks of loss.

Don't I already have enough insurance?  You do have good insurance. Your property insurance covers many standard perils, such as fire. But it wasn't designed to pay for the unique causes of equipment failure such as short circuits or centrifugal force. Equipment breakdown coverage is specially designed to pay for damage caused by equipment perils and for the other resulting loss, business income for example.

If equipment breaks, it is not expensive to fix.  You may be right, the part that breaks is sometimes not expensive. Yet machinery and equipment are generally part of an integrated system. When equipment breaks down, a small flaw can quickly lead to another problem and another until the whole system collapses. Beyond the cost to fix everything, also consider the cost of a business interruption lost income and, perhaps, customers. Would you like to see some examples of how costly these losses can be?

My equipment is covered by warranty.  What about your business income? Will the warranty pay you for lost profits or your continuing expenses in the event a breakdown interrupts your business? Equipment breakdown insurance does.

Click on the Locations and Contact bar for a location near you, and a member of our Business Solutions Team will be pleased to assist you.