Boiler And Machinery Insurance Packages
Why Buy Boiler and Machinery Insurance?
Property Coverage - Most property
insurance policies do not cover your losses
resulting from breakdown of expensive machinery
or from explosion of high pressure (exceeding 15
p.s.i.) steam boilers, pipes, turbines and
engines. Damage to building, personal property
and the equipment itself should all be covered
under a boiler policy. The boiler policy also
protects You against other losses not covered by
basic property insurance, such as electrical
Surges or arcs.
Loss of Use - Breakdown of heating,
cooling, or processing equipment may bring
operations to a halt. Will you be able to handle
the loss of income when production is shut down
or when occupancy of your building is impossible
due to lack of heat or cooling? This coverage
can also be provided under a boiler and
machinery policy.
Consequential Loss - Will you lose
goods through spoilage if heating or cooling
equipment breaks down? This is another area for
boiler and machinery coverage.
Who Needs Boiler and Machinery Insurance?
- Churches, apartments, schools,
hospitals, municipalities, florists, dry
cleaners, manufacturers and auto repair
shops, to name a few. Almost all older
downtown buildings are heated by some type
of boiler. A boiler is a fired vessel in
which water is heated or converted into
steam by combustion of fuel in its furnace.
In addition to boilers and other fired
vessels, you may have other expensive
equipment that should be protected by a
Boiler and Machinery Policy.
- Unfired vessels: Air, steam or water
tanks; refrigeration systems; chests or
rolls on steam pressers, steam cooking
kettles and rendering tanks; chemical
process tanks; steam forms; digesters.
- Machines: Engines; compressors; pumps;
wheels; gears; centrifugal dryers;
production machines.
- Electrical apparatus: Generators;
motors; transformers; switchboards and
controls.
- Refrigerating units and small (15 HP
limit) compressing units.
- Deep-well pump units.
- Air conditioning units of all sizes.
You can insure all of the above equipment by
selecting comprehensive coverage. Deductibles
are available to help you control premium costs
by eliminating claims for small items and
maintenance problems.
How Are These Exposures Covered?
Boiler and Machinery - The Limited form of
Boiler and Machinery coverage is designed to
cover the catastrophic loss such as explosion.
The Broad form covers not only explosion but
also sudden and accidental breakdown. Most
boiler coverage is written on a repair or
replacement basis; like the replacement cost
provision of other types of property insurance,
this allows you to replace damaged property with
similar new property.
Business Interruption - This form covers loss
of use. Loss of profit and continuing expenses
due to a total or partial decrease in production
are covered. It may be written with a specific
limit or on an actual loss sustained basis.
Extra expense coverage may also be written to
cover the increased cost to get you back in
business quickly.
Consequential Damage Coverage - This form
provides replacement cost coverage for goods
lost due to spoilage should heating or cooling
equipment break down.
We can guarantee that your rates will not go
up during the policy term if there is no change
in the risk. Boiler and Machinery policies
offered through W.E. Davis Insurance and
underwritten by Cincinnati Insurance Company are
issued for three years with annual payments.
Quarterly and semi-annual payments are also
available.
An Added Value For You - Inspection Service
Many boiler and machinery items must be
inspected regularly by licensed inspectors. This
may include not only high pressure steam boilers
and other pressure vessels but also low pressure
steam boilers, most hot water heating boilers
and possibly unfired pressure vessels. For
clients of Cincinnati Insurance Company, your
Cincinnati Insurance field engineer provides
this inspection service.
The inspection makes possible another very
important function: loss prevention. When items
are inspected regularly, many times problems can
be avoided. This, of course, is far preferable
even to an insured loss. Although safety of a
unit cannot be guaranteed, there is a certain
"peace of mind" for you in knowing your boiler
is seen regularly by an engineer.
This is not a policy. For a
complete statement of the coverages and
exclusions, please see the policy contract.
Contact us to
learn more.
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