What type of loss is covered by consequential damage in a boiler and machinery policy?

Consequential damage in a boiler and machinery policy specifically refers to losses that occur as a secondary effect of a primary insured event. In this case, the loss due to spoilage from lack of power, light, steam, or refrigeration is directly related to the operational failure of machinery or equipment. For instance, if a boiler malfunctions and causes a power outage, the resulting spoilage of perishable goods due to a lack of refrigeration would be considered a consequential loss.

This type of coverage is essential because it goes beyond just the physical damage to the machinery itself and encompasses the financial impact of the equipment's failure on the insured's business operations. It addresses the additional costs incurred as a result of the machinery not functioning, which can lead to significant financial loss if not adequately covered.