Boiler & Machinery Claims (Mechanical Breakdown)

Claim Type

Boiler & Machinery Damage (Mechanical Breakdown)


Boiler and machinery insurance refer to the insurance of machines. Boiler insurance is not applicable only to boilers, but any machine that generates electrical power, for example, generators, motors etc. Boiler and machinery insurance include the damage to not just the machine, but also to the surrounding area through explosions, fire etc.

Why Opt for Boiler and Machinery Insurance?

If you have ever tried to settle a simple insurance claim related to breakdown or damage to machine or equipment, you will know how difficult it is to get the company to pay for additional damages like destruction of property, loss of business etc. Boiler and Machinery Insurance covers not just the damage to the machine, but also other damages caused by the malfunctioning machine. These damages may include business loss and property damage. In fact, some types of Boiler and Machinery Insurance also cover damages to neighboring properties, and pay for setting up of temporary arrangements for running the business.

Who Needs Boiler and Machinery Insurance?

Anyone who runs any kind of business that uses electrical or mechanical devices of some sort should buy a Boiler and Machinery Insurance policy. Many people have the misconception that Boiler and Machinery Insurance is only for large factories and manufacturing units. As a small business owner, you probably do not use heavy machines, but even the smallest of businesses use equipment like air conditioners, refrigerators, ovens, coffee machines etc. Malfunction in any of these equipments could cause an explosion or fire, damage to neighboring as well as your own property and business loss. Boiler and Machinery Insurance will cover all these damages.

What Does Boiler and Machinery Insurance Cover?

Boiler and machinery insurance are of different types. Some kinds of boiler and machinery insurance cover a specific boiler that is recognized by year of manufacturing or number. Other Boiler and Machinery Insurance cover electrical motors. The more extensive Boiler and Machinery Insurance cover all kinds of machinery and equipment, as well as damage caused by equipment malfunction.

How to Choose Boiler and Machinery Insurance:

Most small business owners opt for boiler and machinery insurance to cover the items that are not covered by other kinds of insurance policies, like property or vehicle insurance. Choose a policy that not just pays you for the damaged machine, but also helps you recover from business losses caused by the accident. This means that you should look for a boiler and machinery insurance policies that will help you set up a temporary business unit after an accident, pay for damages to the property and compensate for business losses.

This kind of insurance (sometimes called “equipment breakdown insurance” or “machinery equipment insurance”) pays for accidental losses to equipment and machinery. In spite of its name, boiler insurance can actually cover any machine or device that creates or transmits electrical or mechanical power, with certain exceptions.

Most business property insurance policies exclude coverage for losses caused by steam boiler explosions, mechanical breakdown, or artificially generated electrical current. Boiler insurance protects against those types of losses and is ideally suited for industry and manufacturing.

Examples of Boiler Insurance Covered Items:

  • specific objects – “2004 Boiler # 45322”
  • blanket objects – “blanket all electrical motors”
  • comprehensive – “all objects unless specifically excluded”

In the U.S., most insurance companies providing boiler insurance will usually perform required boiler inspections for free.

Extensions of Coverage
Standard boiler / machinery policies have three extensions of coverage.
1) Expediting Expense coverage, which pays for reasonable extra cost incurred to expedite business after a loss
2) Automatic Coverage covers accidents to items at newly acquired locations for up to 90 days after acquisition
3) Defense Cost for defending the company against claims alleged liability for damaging the property of others. Defense Cost and Supplementary Payments are payable in addition to the policy limit. Expediting Expenses are included in and not in addition to policy limits.

Broad Coverage Form
Coverage is provided for any boiler, any pressure vessel, any refrigeration or air conditioning equipment and any mechanical or electrical equipment. Only certain types of companies can qualify for the small business policy and property values cannot exceed $5 million.

The standard deductible is $250. Coverage can be written with more than one deductible.

Call for a consultation to explore all your options in dealing with your Boiler & Machinery Claim . 1-800-303-2591