Even if you own a 9-5 business, and your hand working employees have gone home for the day, you still have workers laboring all night for you. They aren’t second or third shift crews; rather, they are machines: your heating and air conditioning systems, your boiler, and many other systems are still faithfully doing their job. Just as you need insurance to cover your hourly workers, you need insurance for these important mechanical workers. Without it, a frozen pipe or a leaking valve could result in thousands of dollars of damage. This is what boiler and machinery insurance is designed to protect against.
Boiler and Machinery Insurance
Boiler and machinery insurance (sometimes referred to as B&M insurance) works similarly to other types of liability coverage. It is designed to cover sudden or accidental breakdowns of various machines, equipment, and systems your company uses. Even if you have a business property insurance policy, many such policies do not include certain types of equipment failures. B&M usually includes inspection service as well.
Machines and Objects Intended for B&M Insurance
There are several different things that you may be able to get B&M insurance for, including:
- Pressure vessels
- Steam and hot water boilers
- Refrigeration systems
- Heating and air conditioning systems
- Pumps and compressors
- Turbines
- Electrical apparatus, transformers, and generators
- Electronic data processing (EDP) systems
- Various other engines utilizing mechanical or electrical energy
- Phone or other communication systems
- Various types of piping
- Blowers
- Gearing and shafting
With this vast range of possible machines, it is likely that almost every business has some sort of equipment breakdown risk.
Coverage of Resulting Damage
A good B&M insurance policy will not only cover the damage sustained to the object or machine itself, but also any damage which can be linked as a result of the object’s accident. For example, a product that is damaged by the water from the machine’s damage. Also, endorsements are available to cover additional costs, such as loss of income, extra expense, utility services, or consequential loss (spoilage). Such things are likely not covered in a simple business property policy.
Do You Need Boiler and Machinery Insurance?
No matter what type of business you have, it is highly advisable for you to have a B&M insurance policy. This is especially true if your production depends on a machine of some sort. Get it insured to avoid not only the loss of the machine, but the damage or loss of income it might cause you. If production comes to a screeching halt because your top machine is down—it could cut into your profits and your bottom line. Businesses which are less dependent on machinery will still feel the effects of a downed system. Boilers and HVACs break down more frequently than most people like to admit.
Hopefully something as traumatic as a steam boiler explosion will never happen to your business. But given the rate and untimeliness of machine and equipment failure, most successful businesses have wisely chosen to add this coverage. If you have questions about boiler and machinery failure insurance or any of the policy options, contact the experienced professionals at the TJ Woods Insurance Agency in Worcester, MA. In addition to B&M insurance, we provide a whole array of commercial insurance, which you can find here.
