Boiler and machinery insurance is often referred to as equipment breakdown insurance today, because it is really designed to protect you when your critical equipment malfunctions. Large facilities such as manufacturers, hospitals, web-based service and product suppliers, department stores, and even restaurants have an enormous investment in their equipment. Properly running equipment is essential to the operation of any size business and any inopportune failure can cripple or completely shut down your company.
An independent agent in the Trusted Choice® network can help to assess your company's needs and find the right boiler and machinery insurance policy for you. Unlike captive agents who work for one company, these agents are independent professionals who partner with many different insurance companies. A member agent can present you with several boiler and machinery insurance quotes from a number of different companies so you can choose the policy that matches your needs and budget. Contact your local member agent for assistance today.
Why Get Coverage for Equipment, Machinery and Electronics?
- Operator error accounts for 35% of all mechanical breakdowns.
- 25-50% of a company's electrical infrastructure can be damaged in a single event known as "electrical arcing."
- Virtually every commercial business has risks with regard to business continuation and loss of income in the event of an equipment breakdown.
- Coverage for equipment, machinery and electronics is excluded on most business insurance policies.
Boiler and Machinery Insurance Definition
The definition of boiler and machinery insurance, or "equipment breakdown insurance," is a policy that provides indemnification in the event of loss with respect to and arising from the ownership, use and operation of boilers, machinery and other commercial equipment.
So in other words, when you buy this coverage, it covers your losses when your equipment breaks down, whether due to malfunction, overheating, user error or other cause.
Since it only takes a spike in voltage or an electrical malfunction to create havoc with your equipment, it is a very good idea to work with a knowledgeable insurance agent who can help you understand this coverage, and how it can protect your business.
What Does Boiler and Machinery Insurance Cover?
Equipment breakdown can involve machinery, equipment, electrical systems and more. A good boiler and machinery insurance policy will cover:
- Boilers, turbines and hot water heaters
- Compressors and electric motors
- Electrical equipment, transformers and voltage regulators
- Refrigeration equipment
- Air conditioning equipment
- Telephones and networks
- Electronic devices, computer systems, fax machines and copiers
- Most importantly, a boiler and machinery insurance will cover your losses due to business interruption, including:
- Loss of income while equipment is repaired
- The cost to repair the equipment
- The cost to replace items lost, such as perishables in a damaged refrigeration unit
Additionally, this policy will cover a wide range of causes, including:
- Mechanical breakdown
- Electrical malfunction
- Artificially generated electrical current, including electrical arcing, which can cause widespread damage to electrical components and computer systems
- Internal malfunction of a system as well as user error
To fully understand what an equipment breakdown insurance policy will and will not cover, talk with an independent agent in the Trusted Choice network.
How to Reduce Equipment Failure Leading to Claims
Most companies with any significant equipment investment hire one or more service firms to maintain the equipment in peak condition. A well maintained boiler unit may run for decades without mishap, if a technician spots the potential for trouble. For example, maintenance personnel can replace worn belts before they break. They may notice any unusual sounds coming from an electrical motor.
Companies that maintain a large network of computer systems, servers and networks often turn to "managed services" contractors who can monitor the wellbeing of the computers and networks, and spot problems before they can cause downtime. Maintaining a high quality backup system and mirrored data for fast recovery after a catastrophic loss can also help to reduce the time and costs involved in keeping your business up and running.
Note that any time you take significant steps to mitigate risk, it is important to share this information with your insurance agent. An independent agent will advocate for you with your insurance company, and can potentially seek discounts based on risk reduction measures.
How to Compare Boiler and Machinery Insurance Quotes
The uninsured losses that resulted from Hurricane Sandy in 2012 were astronomical, and companies of all sizes were devastated when they discovered their current coverage excluded much of their equipment. You can compare boiler and machinery insurance quotes today and get peace of mind that you are prepared for equipment breakdown, even if it is catastrophic.
A local member agent in the Trusted Choice network can evaluate your current situation and help you review coverage from several different insurance companies. Over 22,000 member agencies are available across the country, which means there is a member agent right in your area. Contact an independent agent today for all of your business insurance needs.