January/February 2020 Volume 31, Number 1 | |||||
Equipment Breakdown Insurance Is Much More than InsuranceEquipment Breakdown insurance – formerly called Boiler & Machinery insurance – covers much more than boilers and machinery.
Insurers introduced boiler and machinery coverage in the mid-1800s to cover valuable steam-powered machinery from explosion or breakdown, and to cover the equipment's owner from liability for resulting property damage or bodily injury. Today, few businesses use steam-powered machinery for business operations, but some still use steam-powered equipment for generating heat or power. Many states require these boilers to be inspected annually. If your boilers fall into this category, you may find equipment breakdown coverage a bargain, as coverage includes an inspection by the insurer along with protection from loss due to property damage or bodily injury. If you are relying solely on a governmental inspection for compliance, you may end up paying more and not have the insurance protection.
Don't think you need this coverage? Consider the following examples of claims from Hartford Steam Boiler, an insurer that specializes in boiler and machinery insurance and equipment breakdown insurance:
Insurers typically write equipment breakdown coverage under a stand-alone policy; however, some will include the coverage under highly protected risks (HPR) policies or in business package policies. Most policies provide seven typical coverages. |
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How to Create a Risk Management Plan New Insurance Products: Warranty & Indemnity Insurance Equipment Breakdown Insurance Is Much More than Insurance What's Covered in a Typical Equipment Breakdown Insurance Policy?
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