What is the timeframe for newly acquired equipment to be covered under a boiler and machinery policy?

The correct timeframe for newly acquired equipment to be covered under a boiler and machinery policy is 90 days. This specific duration is important because it provides a period during which the insured can have peace of mind concerning coverage for new machinery and equipment without the need to immediately update their policy to include these items.

In many boiler and machinery policies, there is often a clause that automatically extends coverage for newly acquired equipment for a certain period, typically 90 days. This is designed to help businesses adapt to growth or changes in operations, allowing them to invest in additional machinery without worrying about immediate coverage needs. After this 90-day period, the insured would typically be required to formally report the new equipment to the insurance provider and may need to adjust their coverage accordingly to ensure ongoing protection. This automatic extension is a common feature that helps businesses manage their risks more effectively while they are in a transitional phase.