What is the minimum limit of coverage under a boiler and machinery policy?

The minimum limit of coverage under a boiler and machinery policy is commonly established at $500,000. This coverage is essential for protecting businesses from potential losses related to the operation of boilers, turbines, and other machinery. The $500,000 limit provides a baseline for liability in the event of accidents or failures that could lead to significant financial losses due to damaged equipment or operational downtime.

By setting this minimum limit, insurers ensure that policyholders have a foundational level of protection that can cover major incidents while encouraging businesses to assess their risk exposure and consider higher coverage limits based on their specific needs. Higher limits may be available and advisable depending on the size and scope of the operations involved.