Boiler & Machinery insurance is also referred to as Energy Equipment or Mechanical Breakdown. This coverage has four separate parts:
- Damage from an accident to the items covered
- Damage to the insured’s other property caused by an accident to the items covered
- Loss of income due to damage to the item and/or damage to the other insured property
- Damage to property of others and bodily injury to others caused by an accident to the items covered
The items covered are boilers and other heating devices, air conditioners, HVAC equipment, electronic equipment, motors, production machinery, freezers, and refrigeration units. Additional coverages for spoilage and contamination can be included.
For Example: A short circuit in your building causes complete loss of computer information. The cost of recovering the information is significant. The costs associated with the repair of the computer system as well as the collection and restoration of data is covered under the policy.