Boiler and Machinery

When equipment that’s essential to your business stops working, production can be reduced significantly or even grind to a halt. Either way, equipment breakdown can affect your company’s bottom line — an outcome that no one, except perhaps your competition, wants to see. That’s why a strategic investment in boiler and machinery insurance makes sense. We’ll work with you to assess your risks and design and negotiate a competitive, tailored insurance program that will protect your company from equipment breakdown, property damage and business interruptions.

Boiler and machinery insurance, also called equipment breakdown insurance, provides coverage for physical damage and financial loss that can result from an equipment breakdown. 

Boiler and machinery insurance covers the costs required to repair or replace damaged equipment, as well as losses incurred because of the time it took to repair the equipment and restore business operations. It covers not only the damage to the machine, but also other property damages caused by the malfunctioning machine. 

The cost of equipment breakdown can be significant, and breakdowns can occur often enough for there to be a high risk to your organization’s financial health due to the high restoration cost. Business property insurance typically does not pay for equipment accidents, especially given the unique causes of equipment failures, which is why boiler and machinery insurance is needed for these more uncommon risks.

Boiler and machinery insurance coverage is often purchased by manufacturing companies since they use various types of equipment that need to run constantly. Businesses that process goods using electrical, mechanical, heating, or refrigeration devices on a large scale also commonly need boiler and machinery insurance. Additionally, small businesses can also utilize boiler and machinery insurance to protect common items such as an air conditioners, computers, refrigerators, and ovens.

Boiler and machinery insurance can cover a wide range of equipment based on your business’s needs. The most common coverage includes manufacturing equipment such as boiler machines, generators, engines, cables, HVAC systems, and transformers. It can also cover office equipment such as elevators, computers, copiers, telephones, and even security systems.