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

The correct answer is that costs associated with equipment upgrades are not typically covered under a boiler and machinery policy. Such policies are primarily designed to protect against specific risks related to the operation of boilers and machinery, including the accidental breakdown of machinery, property damage resulting from machinery failure, and the costs related to temporary repairs following a covered incident.

When it comes to equipment upgrades, these are generally considered enhancements that improve a machine's functionality or efficiency rather than actions taken to repair or restore operations after a failure. Insurance policies typically do not cover upgrades because they fall outside the scope of damages or losses related to unexpected breakdowns or failures, which are the primary focus of boiler and machinery coverage.

This distinction is important because understanding the limitations of coverage under these types of policies helps policyholders better assess their risks and ensures they have the appropriate insurance in place for their needs.