What Does Boiler and Machinery Insurance (BM) Mean?
Boiler and machinery (BM) insurance is a policy that covers the damages resulting from the breakdown of equipment. It may cover the cost of repairing or replacing damaged equipment, property loss, lost business income, temporary replacement costs, other expenses aimed to mitigating operations slowdown, spoiled products or materials, and expenses for business recovery.
Boiler and machinery insurance is also known as equipment breakdown insurance.
Insuranceopedia Explains Boiler and Machinery Insurance (BM)
Despite the name, BM insurance covers much more than just boilers and similar machinery. Coverage may include piping, engines, pumps, motors, generators, transformers, refrigeration and air condition equipment, and more.
Because of the many risks commercial businesses face, BM insurance is often essential to protect against the devastating costs that equipment breakdown may have. For example, an exploding boiler would cause property damage, slow down business operations, require replacement, and result in a loss of time and profits.