Steam Boiler Insurance

What Does Steam Boiler Insurance Mean?

Steam boiler insurance provides coverage for losses resulting from damage to equipment such as boilers and furnaces. Businesses with these types of machinery purchase this insurance because such equipment is often excluded from standard commercial property policies. In modern policies, this type of protection is often sold under the broader name equipment breakdown coverage, which extends beyond boilers to include HVAC systems, electrical panels, and other mechanical equipment.

It is also referred to as boiler and machinery insurance.

Insuranceopedia Explains Steam Boiler Insurance

Boilers, furnaces, and other machinery are often essential to businesses, and companies can incur significant losses if this equipment breaks down or malfunctions. However, many standard property policies do not cover such losses. As a result, many businesses opt for steam and boiler insurance to avoid bearing the full burden of these potential losses. Because a typical commercial property insurance policy excludes damage caused by internal equipment failure, business owners usually review their property coverage and decide whether a separate boiler and machinery policy is needed to fill the gap.