Boiler and machinery insurance, also known as equipment breakdown insurance, provides specialized coverage for financial losses caused by the sudden and accidental breakdown of covered equipment and machinery. Here’s what it’s for and why it’s important:

What it Covers:

1. Equipment Failure: Pays for the cost to repair or replace equipment that suffers a covered breakdown, including:

   • Boilers and pressure vessels
   • Air conditioning and refrigeration systems
   • Electrical equipment and wiring
   • Production machinery and tools
   • Computer systems and servers

2. Business Interruption Losses: Goes beyond the equipment itself, covering:

   • Lost Income: Reimburses income lost while your operation is down due to the breakdown.
   • Spoilage: Covers the loss of perishable products or inventory if the breakdown affects temperature or conditions.
   • Extra Expenses: Helps pay for things like renting temporary equipment, expediting repairs, or overtime for staff to get things back online faster.

Who Benefits Most:

• Manufacturers & Industrial Operations: Reliant on complex and expensive machinery where downtime is highly disruptive.
• Hospitals and Data Centers: Equipment failures (like AC systems) have critical consequences.
• Food and Beverage Industry: Refrigeration breakdowns can lead to significant spoilage losses.
• Any business with expensive, specialized equipment: Where standard property insurance doesn’t cover breakdowns.

Why It’s Important:

• Equipment Breakdowns Happen: Even well-maintained equipment can experience unexpected failures due to:
  • Mechanical malfunctions
  • Electrical surges or arcing
  • Operator errors
  • Boiler explosions and other accidents
• Cost of Disruption: Downtime isn’t just about the repair, it’s about lost revenue, damaged reputation, and recovery expenses.

Additional Perks:

• Inspections: Many policies include complimentary equipment inspections which can help prevent problems before they occur.