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 established at $500,000. This amount reflects the industry's standards for coverage that is essential to protect businesses against potential losses due to boiler or machinery failures. Such policies typically offer financial protection against losses arising from equipment breakdowns, which can lead to significant operational and repair costs.

Boiler and machinery insurance is crucial because it not only covers physical damage to the machinery itself but also any resulting loss of income or additional expenses due to the downtime of the affected equipment. By setting the minimum limit at $500,000, insurers ensure that businesses have a reasonable level of protection that can help mitigate financial impacts in the event of an incident. Higher limits can be obtained based on the specific needs and risks of the business, but the minimum reflects a baseline level of security necessary for safe operation.