Boiler And Machinery Insurance

What Does Boiler And Machinery Insurance Mean?

Boiler and Machinery (BM) insurance is a policy that covers damages resulting from equipment breakdowns. It may include coverage for the cost of repairing or replacing damaged equipment, property losses, lost business income, temporary replacement costs, expenses aimed at mitigating operational slowdowns, spoiled products or materials, and business recovery expenses.

Boiler and Machinery insurance is also known as Equipment Breakdown insurance.

Insuranceopedia Explains Boiler And Machinery Insurance

Despite the name, Boiler and Machinery (BM) insurance covers much more than just boilers and similar machinery. Coverage may extend to piping, engines, pumps, motors, generators, transformers, refrigeration and air conditioning equipment, and more. For this reason, the same policy is often called equipment breakdown coverage, especially when sold to businesses without traditional boilers.

Given the numerous risks that commercial businesses face, BM insurance is often essential to protect against the potentially devastating costs associated with equipment breakdowns. For example, an exploding boiler could cause property damage, disrupt business operations, require replacement, and lead to a loss of time and profits. Smaller businesses sometimes add this coverage to a business owner’s policy as an endorsement, while larger operations usually buy it on a standalone form.