Boiler and Machinery (BM) Insurance

Boiler and machinery insurance is designed to protect businesses against critical equipment malfunctions. Large facilities such as manufacturers, hospitals, department stores, and restaurants have made huge investments in their equipment, which is essential to their operation. In the event of equipment malfunction or failure, costly shutdowns and repairs could mean trouble for your business. That's what makes having this coverage critical.

Luckily, an independent insurance agent can help assess your company's needs and find the right boiler and machinery insurance policy. They'll get you set up with the ideal amount of coverage for your business's equipment. But first, here's a breakdown of boiler and machinery insurance and why it's necessary.

What Is Boiler and Machinery Insurance?

Boiler and machinery insurance, also known as "equipment breakdown insurance," is an essential part of a larger business insurance policy that covers losses when your business's equipment breaks down. These breakdowns can be due to malfunction, overheating, user error, or another covered cause. This coverage can reimburse your business for losses related to physical damage to its equipment as well. 

Boiler and machinery insurance can pay for the costs of repairs or replacements to company equipment as well as temporary business shutdowns due to malfunctioning or broken equipment. This coverage can be applied to many types of equipment and machinery used by businesses in many industries, including furnaces, boilers, elevators, and even several kinds of office equipment.

What Types of Equipment Does Boiler and Machinery Insurance Cover?

Equipment breakdown insurance can cover machinery, equipment, electrical systems, and more. A boiler and machinery insurance policy can usually cover the following:

• Boilers, turbines, and hot water heaters
• Compressors and electric motors
• Electrical equipment, transformers, and voltage regulators
• Fire alarm and security systems
• Refrigeration equipment
• Air conditioning equipment
• Telephones and networks
• Electronic devices, computer systems, phones, fax machines, and copiers
• Elevators

If you're unsure whether your business's equipment or machinery can be covered by equipment breakdown insurance, work with an independent insurance agent to get the policy you need.

Types of Loss Covered by Boiler and Machinery Insurance

Having equipment breakdown insurance can protect your business against a number of different losses. Primarily, boiler and machinery insurance can cover losses due to business interruptions related to damaged or broken equipment. 

Here are some of the major types of loss covered by equipment breakdown insurance:

• Loss of income during shutdowns while equipment or machinery is repaired
• The cost to repair damaged equipment and machinery
• The cost to replace broken or destroyed equipment and machinery
• The cost to replace items lost, such as perishables in a damaged refrigeration unit

Keep in mind that for coverage to apply to lost items such as spoiled food, the cause of the equipment damage must be due to a listed peril, such as a power outage after a lightning strike. Your independent insurance agent can further explain the types of business losses covered by equipment breakdown insurance.

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Types of Damage Covered by Boiler and Machinery Insurance

It's crucial to understand when your equipment breakdown insurance covers equipment malfunctions, damage, and destruction. Boiler and machinery insurance often covers a wide range of hazards, including:

• Mechanical breakdown
• Electrical malfunction
• Artificially generated electrical current, including electrical arcing, which can cause widespread damage to electrical components and computer systems
• Explosions
• Internal malfunction of a system as well as user error
• Lightning-induced power surges

Talk with an independent agent to fully understand what an equipment breakdown insurance policy covers and does not cover.

How Much Does Boiler and Machinery Insurance Cost?

The cost of equipment breakdown insurance can vary considerably based on your business's industry and other factors. The most common criteria that can influence your coverage costs include:

• The type and location of your business
• The types of equipment, machinery, etc., used by your business
• Your business's annual revenue
• Your business's claims history

An independent insurance agent can help you compare quotes for affordable boiler and machinery insurance near you.

Here's How an Independent Insurance Agent Can Help

When it's time to find the right boiler and machinery insurance for your business, no one's better equipped to help than an independent insurance agent. Independent insurance agents have access to multiple insurance companies in your area, and they know who offers the best equipment breakdown insurance at the most affordable rate. 

Your agent can shop and compare policies and quotes for you and deliver only quality results. And down the road, your agent can help you file business insurance claims and update your coverage as necessary.