AIM News - EPLI Coverage

We at AIM feel it is important to make sure you are aware of all the important coverages available to protect your business in the event of an unfortunate incident. Equipment breakdown insurance, also known as boiler and machinery coverage, is one such coverage that safeguards your business against catastrophic property loss or the financial impact many businesses face when an expensive piece of equipment fails.

Such coverage is usually not available under other insurance policies, making it critical for all business to purchase an equipment breakdown policy. However, it's not just the physical damage of a steam boiler explosion or the breakdown of a walk-in freezer that is worrisome. It’s also the loss of income and expense of repairs that businesses have to grapple with when there is a serious occurrence. A boiler and machinery policy will cover those items with business interruption and extra expense coverage necessary to keep operations going.

In addition, consequential damage and refrigeration interruption insurance protect businesses from losses caused by spoilage that happen following a breakdown. Frequently, extra costs such as spoilage losses can be much more expensive than the repairs to the machinery or equipment.

Furthermore, equipment breakdown insurance can provide invaluable inspection services that can meet jurisdictional requirements and lead to loss control recommendations that can help assure efficient operation and longer equipment life.

Virtually every commercial business has some type of boiler and machinery insurance exposure. Mechanical breakdown coverage encompasses more than just boilers and pressure vessels. It also can include refrigeration and air conditioning equipment, various types of piping, turbines, engines, pumps, compressors, blowers, gearing, shafting, electric motors, generators, transformers and assorted other types of mechanical and electrical equipment.