Boiler & Machinery / Equipment Breakdown Insurance
This coverage is a form of property insurance that protects against the mechanical breakdown and failure of boilers and other heating and cooling devices, machinery, and electrical apparatuses in a building. Most machinery and equipment, including electronic devices, can also be covered.
Boiler & Machinery Breakdown Insurance Coverage Includes
Boiler & Machinery Coverage (also known as Equipment Breakdown coverage) has several parts:
- Damage to covered items from an accident
- Damage to the other property of the insured caused by an accident to the covered items,
- Legal expenses incurred for defense against a claim or suit alleging liability under the policy
- Loss of income due to damage to the items covered and/or damage to other insured property
Examples Of Losses Covered
- A crack develops upon the start-up of an aluminum extruding press for a metalworking operation, halting production for 30 days. The total property and business income loss totals almost $1 million dollars.
- A voltage spike from a utility supplier causes severe electrical damage to a facility’s main transformer. The cost for the transformer replacement, as well as temporary rental of a transformer, exceeds $400,000.
- A high-rise apartment complex is heated by a large steam boiler. A safety relief valve fails and creates excessive pressure, causing an explosion. The cost of the boiler replacement, and surrounding building damage, totals $500,000.
Who Needs Equipment Breakdown Insurance?
This type of policy is designed with many industries in mind, including:
- Commercial and Residential Real Estate Owners / Property Managers
- Communications and Broadcasting
- Food Processing
- Hospitals and Nursing Homes
- Hotels and Motels
- Light Metalworkers
- Museums and Cultural Institutions
- Schools and Universities
Brunswick Companies offers Boiler and Machinery/Equipment Breakdown insurance policies from a wide range of top ranked carriers. With over 35 years of commercial experience, we have the know-how and industry contacts to match your needs with the plan that best suits your risk management and financial goals.