Many think that if they don’t have a boiler, they don’t require insurance, however, this is not necessarily the case. If you have electricity, you need boiler and machinery coverage. Property policies do not cover certain types of losses such as those resulting from electrical arcing, mechanical breakdown or a ruptured boiler.

Equipment breakdown insurance, commonly referred to as boiler and machinery insurance, covers the physical and financial damage that can result from an equipment breakdown. Most property policies exclude the very losses that equipment breakdown insurance is designed to cover.

Mechanical breakdown coverage encompasses much more than just boilers and pressure vessels. It also can include refrigeration equipment, air conditioning equipment, various types of piping, turbines, engines, pumps, compressors, blowers, gearing, shafting, electric motors, generators, transformers and assorted other types of mechanical and electrical equipment.

Warranties and service contracts are important but they don't cover many of the common causes of equipment breakdowns. Maintenance contracts cover routine service such as cleaning or adjustment; but, they don't pay for damage due to operator error– the cause of over 35% of equipment breakdowns. Equipment breakdown insurance does. Warranties and maintenance contracts also don't pay for business interruption or income loss resulting from breakdown. Nor do they pay for spoilage, damage to surrounding property or extra expenses to restore operations. Equipment breakdown insurance can cover all these risks.

For more information or a no-obligation quotation, contact us.

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