Boiler And Machinery Insurance 101

The Boiler And Machinery Insurance Definition Of The Day Is: Object

Definition: Object is a boiler and machinery (B&M) or machinery/equipment breakdown insurance term for equipment or machinery. Boiler and machinery insurance coverage applies to loss or physical damage resulting from an accident (such as a mechanical or electrical breakdown or explosion) to a covered object. An example of an object that could be covered under a boiler and machinery (BM) or machinery/equipment breakdown insurance policy could be a rooftop HVAC unit, phone system, servers, computer/IT hardware, manufacturing equipment, pressure vessel, or an actual boiler. In addition to the direct damage a covered boiler and machinery loss has, it’s alsoimportant to note that if the proximate cause of a loss, like a fire, is a pressure vessel it would likely only be covered under a boiler and machinery policy and excluded from property insurance. That’s why it’s critical to have well structured property and boiler and machinery insurance coverage.

Some additional benefits of purchasing boiler and machinery or equipment/machinery breakdown insurance are:

• Encourages Preventative Maintenance Evaluations to help you develop instructions and pre-defined logs listing timelines and recommend actions to properly maintain boilers, air conditioners, and other critical equipment.
• Jurisdictional & Province Required Inspections of boilers and pressure vessels can be conducted by insurance company inspectors to comply with provincial and jurisdictional regulations.
• Accident Investigations are conducted by experts within 24 hours of notification of loss to help you resume the operation of your business, review loss causes and recommend ways to reduce recurrence and mitigate the cost of loss.
• Physical Surveys can be conducted on your machinery and equipment to evaluate your exposures. Where identified, insurers will develop recommendations to help you reduce the likelihood of downtime and loss.
• Infrared Thermography is used in the inspection of mechanical and electrical equipment for “hot spots” such as loose connections, faulty insulation, and dust accumulation – that if left unattended can lead to electrical fires which could cause much greater damage to your business operations.

To learn more about the difference between property insurance and boiler and machinery (BM) or machinery/equipment breakdown insurance and what could be considered a covered object, and therefore insurable, speak to an ALIGNED Insurance Advocate today. We assist businesses in securing the right boiler and machinery insurance policy from the most reputable insurance companies, ensuring they have the best coverage. Click Here To Get A Quote or contact one of our business insurance experts for information or with any other questions you may have.

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