Boiler and Machinery Insurance

Boiler & Machinery insurance covers direct damage to covered property when caused by a covered cause of loss. Covered property is any property that is owned by the named insured or is in the named insured's care, custody, or control and for which the named insured is legally liable. A covered cause of loss is a sudden and accidental breakdown of the insured's boiler and machinery equipment or any part of the equipment described in the policy. The standard boiler and machinery policy contains three extensions of coverage. The three extensions are 1) Expediting Expense coverage, which pays the reasonable extra cost incurred to expedite progress after a loss; 2) Automatic Coverage which covers accidents to objects at newly acquired locations for up to ninety days after the named insured acquires the property; and 3) Defense Cost and Supplemental Payments which would apply when the insurer is defending the insured against claims or suits alleging liability for damage to property of others. Defense Cost and Supplementary Payments are payable in addition to the policy limit. Expediting Expenses are included in, and not in addition to, policy limits. Now referred to as Equipment Breakdown Insurance. Please see Equipment Breakdown Insurance.