It is a type of property insurance that will pays accidental losses to machinery and equipment. Although it is called boiler insurance it is can actually cover us just about any device that uses, transmits or generate mechanical power, of course certain exclusions apply.
Standard property insurance policies normally exclude coverage for losses caused by mechanical breakdown, artificially generated electrical current, and explosions of high pressure steam boilers. Boiler insurance provides a way to buy coverage for those types of losses.
Boiler insurance can cover:
- specific objects - "A specific boiler identified by year and/or serial number"
- blanket objects - "blanket all electric motors"
- comprehensive - "all objects unless specifically excluded"
In the United States, companies providing boiler insurance will generally perform jurisdictionally required boiler inspections as a "free service" and require a passing inspection as a condition of coverage. Twenty percent of a Boiler and Machinery policy is dedicated to boiler inspection.
Boiler insurance may alternatively be referred to as "equipment breakdown insurance", "machinery and equipment insurance" or any other such name.
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