What does a boiler and machinery policy typically cover?

A boiler and machinery policy is designed to cover losses related to the breakdown of equipment, specifically machinery and boiler systems. This type of insurance primarily focuses on the physical damage to the equipment itself, as well as any resulting consequential damages that may arise from the breakdown, such as business interruption costs or damage to other property.

Coverage typically includes repair or replacement of the equipment and can extend to losses due to the operational impact on the business, making it a valuable policy for businesses that rely heavily on machinery and critical systems for their operations. The scope of this coverage addresses both the immediate financial impact of equipment failure and potential broader repercussions that may affect the business's overall functioning.