This coverage protects your business in the event of sudden and accidental mechanical equipment failure or damage of a covered object, which results in financial loss to your business. It covers losses to your insured property as well as the property of others. In the event an insured object causes an "accident", the Boiler and Machinery policy would pay for damage and repair of property, excluding any subsequent fire related damage, which would be covered by your property insurance policy.
Note that the damage must be sudden and accidental. Damage that is predictable and gradual (i.e. wear and tear, leaking of fittings, worn motor brushes, etc.) is not covered. Additionally, Computer/Data Processing equipment that is not used to operate the covered object is not covered. This equipment would be covered on your Electronic Data Processing policy.
The Boiler and Machinery policy we recommend includes the following coverages and endorsements:
AIR CONDITIONING EQUIPMENT: Because your building
relies on air conditioning we recommend this coverage
which protects your business from assuming an entire
loss in the event of an air conditioning equipment failure.
The repair or replacement of the insured item is included
up to the stated limit.
AMMONIA CONTAMINATION: Because you have
ammonia on your premises, we recommend the purchase
of this coverage. It would protect your business in the
event of a leakage of the ammonia, whether from a
refrigerator or other sources, which results in the
contamination of stored goods.
AUTOMATIC COVERAGE: This coverage is included in
our standard policy, but we want you to be aware of its
benefit. If you purchase any equipment similar to that
which has been previously insured, you have 90 days
of coverage on that object. You must advise us of the
newly acquired machinery within that 90 day period
BOILER INSURANCE: This coverage would protect your
business in the event of a boiler(s) or pressure vessel
explosion when caused by involuntary failure, which
results in damaged property or goods. The coverage
also pays for repair and replacement costs up to the
stated policy limit.
BUSINESS INTERRUPTION/EXTRA EXPENSE: This
coverage will provide you with protection in the event
a loss of an insured object caused by a boiler or
machinery peril results in an interruption of normal
business. Extra expenses may be incurred which
could prove to be very costly. This endorsement
to the above policy will reimburse you for those
expenses based on the policy co-insurance amount
CONSEQUENTIAL DAMAGE: This coverage protects
you in the event of an accident involving an insured
boiler or machinery object. Coverage is provided
when damage results in the spoilage of property or
ELECTRICAL APPARATUS: This coverage pays for
damage caused by electrical short circuit. The covered
items include electrical switchgears, circuit breakers
FURNACE EXPLOSION: We recommend this coverage
to protect your property in the vent of a sudden and
accidental explosion within the furnace of a boiler or
a fired vessel. Damage would be covered up to the
stated limit on your policy.
MACHINERY INSURANCE: Because you have several
pieces of machinery that are vital to your operations,
we provide machinery insurance to protect against
loss due to the breakdown of those insured items.
This coverage will pay for repairs or replacement up
to the stated policy limit.
POWER INTERRUPTION: This coverage would protect
your business in the event of power failure which results
in a loss of equipment usage and/or profits when that
source of power is used exclusively by your firm.
PRESSURIZED VESSELS: This coverage provides
protection in the event of a pressure vessel explosion
which when caused by equipment failure, results in
damage to property or goods. Repair and replacement
costs up to the stated policy limit are included.
REFRIGERATION EQUIPMENT: We recommend this
coverage to protect your business in the event of a
refrigeration breakdown that requires repair or
replacement of the insured item.
REPAIR OR REPLACEMENT: This coverage pays for
the repair or replacement of any damaged items
insured by this policy. The payment is based on
the actual cost of the repair or replacement if acted
upon within a stated period of time. Without this
coverage the reimbursement would be based on
the actual cash value of the damaged item.
SEASONAL OBJECTS: You currently have equipment
covered under your Boiler & Machinery policy that is
used only during certain parts of the year.
By pro-rating those items, we can keep your premium
down. We will increase the coverage during peak
seasons and decrease the coverage during
the "off season".