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Boiler & Machinery Coverage: I don’t have a boiler? Why do I need that?

By February 24, 2015Blog

When some people hear the old phrase “boiler and machinery” they think they have to be an engineer to understand it. But it also includes mechanical breakdown of your equipment including air condition and chiller and cooler equipment.

Equipment Breakdown insurance, sometimes referred to as boiler and machinery insurance, covers the costly physical and financial damage that can result from an equipment breakdown.  Equipment Breakdown insurance can pay for:

*Direct Property Loss – the cost to repair or replace damaged equipment;

*Lost business income and costs for temporary replacement equipment;

*Other expenses incurred to limit the loss or speed restoration of operations;

*The loss value of spoiled products or materials caused by a covered breakdown;

*Business recovery expense

Here are some samples of claim possibilities.

  • Comprehensive Equipment Breakdown Coverage
  • Property Damage- For damage to covered property caused by a “breakdown”
  • Business Income- For a decrease in net income as the result of a “breakdown”
  • Extra Expense- If additional operating costs are incurred as the result of a “breakdown”
  • Spoilage Damage, Including Utility Interruption
  • For spoilage of covered property resulting from a change in controlled conditions that results from a “breakdown” of equipment or equipment owned by a utility supplier
  • Utility Interruption – Time Element Loss of income or additional operational expenses incurred because of a “breakdown” to equipment owned by a utility supplier
  • Dependent Property Loss of income or additional operating expenses incurred because of a “breakdown” at a non-owned business that supplies, purchases or manufactures products for – or which attracts customers to – your client’s business
  • Hazardous Substance Additional damage, loss of income or additional expenses due to a hazardous substance which is the direct result of a “breakdown”

For more details of why you may need Boiler & Machinery coverage, contact Ramey King Insurance at 800-453-9691 or visit our office at 320 Eagle, Ste 210, Denton, TX