Which of the following is NOT typically covered under a boiler and machinery policy?

A boiler and machinery policy is designed to cover various risks associated with equipment, including machinery accidents and breakdowns. Typically, this type of insurance addresses scenarios such as the accidental breakdown of machinery, which can lead to significant loss in productivity and revenue for a business. It also covers temporary repairs needed to restore functionality after a breakdown, and it provides coverage for property damage resulting from machinery failure, protecting the insured party from financial losses caused by such incidents.

However, the policy generally does not cover costs associated with equipment upgrades. Upgrading equipment often involves improvements and enhancements that go beyond simple repairs or accidental breakdowns. These costs are typically considered operational or capital expenditures and are not included in the coverage scope of a boiler and machinery policy. This distinction is important for understanding what a policy will and will not cover, particularly in the context of maintaining and improving machinery.