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BOILER AND MACHINERY COVERAGE
This form of insurance provides important mechanical breakdown coverage generally
not available under any other insurance policy. A Boiler and Machinery policy
can protect an insured against the effects of catastrophic property loss, such
as steam boiler explosion or an expensive breakdown of machinery and equipment.
But it's not just the physical damage caused by the explosion or breakdown
that's of concern. While repairs are being made, valuable time and profits are
lost. Business Interruption coverage protects against this. Often Extra Expense
coverage is required to keep the business in operation regardless of cost. Consequential
Damage and Refrigeration Interruption insurance protect against spoilage as
the result of a breakdown. Many times these business interruption, extra expense
and spoilage losses can be much more extensive than the damage to the equipment
itself.
Equally important is the very valuable inspection service that Boiler and
Machinery insurance can provide. Not only does this service satisfy most jurisdictional
inspection requirements, but it also can benefit the insured by providing sound
loss control recommendations that can help assure efficient operation and longer
equipment life.
It is our opinion that virtually every commercial business has some type
of Boiler and Machinery insurance exposure. Keep in mind that mechanical
breakdown coverage encompasses much more than just boilers and pressure vessels.
It also can include refrigeration equipment, air conditioning equipment, various
types of piping, turbines, engines, pumps, compressors, blowers, gearing, shafting,
electric motors, generators, transformers and assorted other types of mechanical
and electrical equipment. In fact, many policies are written for insureds who
do not own or operate boilers or pressure vessels, but yet have sizable mechanical
and electrical exposures.
Coverage Explanations:
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