Overview
Boiler & Machinery Insurance, also known as Equipment Breakdown Insurance, provides coverage for the sudden and accidental, physical damage to equipment that requires repair or replacement. It covers a variety of equipment including boilers, air conditioning units, electrical machinery, and computers among others.
Coverage Details
- Property Damage: Helps in covering the costs for repair or replacement of the insured’s property directly damaged by the equipment breakdown.
- Expense Coverage: Includes the costs of temporary repairs and speeds up the repair process through expediting expenses.
- Third-Party Property Damage: Provides liability coverage for damage to property of third parties..
- Inspection Coverage: Regular inspections and certifications as required by jurisdictional laws for equipment like boilers and pressure vessels.
Benefits
Mitigates the Financial Impact: Helps mitigate losses due to interrupts in operations providing support for repairs plus temporary measures if needed immediately.
Regulatory Compliance: Many jurisdictions require regular inspections of boilers and pressure equipment which this policy often covers. This ensures compliance with Government safety regulations regarding equipment operations.
Liability Protection: Helps protect the insured from the financial consequences of damaging third party properties.
Related Regulations
In the United States, equipment breakdown insurance operates under various local, state, and federal laws. Multiple jurisdictions have obligations that require the inspection of certain types of machinery, adherence to which is essential for legal and safety operations. The safety standards and inspections are defined broadly under federal oversight from OSHA (Occupational Safety and Health Administration) and specifically through individual state departments.
For more detailed explanation on how specific insurance terminologies work, refer to the Insurance Information Institute’s guide and pertinent regulatory body websites such as OSHA.
