Traditionally, Boiler and Machinery equipment has been handled as a separate line of coverage. These policies combine, in one form, all the property and liability coverages needed for this valuable and important type of property. A variety of endorsements can be used to "customize" this policy to fit your specific needs.

Ammonia Contamination Limit Reviewed (BM9931, BM9938)
This coverage is used to insure against loss resulting from ammonia contamination caused by an accident to any covered object. Back to top

B & M Policy - Basic (BM0040)
This form is designed to cover damage to heat, pressure and cooling equipment, or other "objects." It will also cover any damage to other property which results from damage to the object. The Business Income coverage applies to heat and pressure losses only, and will reimburse you for loss of business income as a result of business interruption and/or extra expenses incurred to continue operations (after a 12 hour waiting period).

The following extensions of coverage are also provided:

· Ammonia contamination
· Water damage to AC/refrigeration systems - $5,000 limit
· Expenses to expedite replacement equipment - $5,000 limit
· Hazardous substance damage
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B & M Policy - Broad (BM0045)
This form is designed to cover damage to any "object," including heat, pressure, cooling, electrical and mechanical equipment. It will also cover damage to any other property which results from damage to the object. The Business Income coverage reimburses you for loss of business income as a result of business interruption and/or extra expenses incurred to continue operations (after a 12 hour waiting period).

The following extensions of coverage are also provided:
· Ammonia contamination - $25,000 limit
· Water damage to AC/refrigeration systems - $25,000 limit
· Expenses to expedite replacement equipment - $25,000 limit
· Hazardous substance damage - $25,000 limit
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Blanket Coverage
This coverage is used to provide protection for those groups of equipment specifically listed in your policy. Under it, any object of the same general description as that provided within a groups' definition is covered. For example, coverage may apply to "all steam boilers" or "all hot water heaters". Back to top

Boiler Insurance
This coverage is used to provide protection for your boiler(s) and pressure vessels as listed in the policy. This is important since loss due to explosion or other accidental breakdowns of this equipment is not covered by your standard Property policy. Back to top

Brand and Label Protection
This endorsement will permit you, at your expense, to stamp "salvage" on, or remove labels from, damaged merchandise which your insurance company has paid for. This ensures that purchasers of the salvaged merchandise will realize it is substandard merchandise and protect your reputation in the market place. Back to top

Broadened Definition of Loss
Some Boiler and Machinery policies limit the scope of coverage "to accidents that result from a sudden and accidental breakdown of a covered object". The policy's definition of accident can be broadened to cover accidents resulting from an occurrence. This broader definition is important since machinery damage can occur and not be recognized for long periods of time. Back to top

Business Interruption - Actual Loss Sustained (BM1526)
This coverage is designed to pay for the actual loss you sustain and sets no limit on the amount which you may collect per day or per month. The coinsurance provision of this form is automatically waived as long as you comply with the annual reporting provision specified in the policy. Expenses incurred to reduce the business interruption loss are also insured under this form. Back to top

Business Interruption - Gross Earnings Form (BM1536)
This coverage is designed to provide coverage when there is a reduction in gross earnings from the total or partial interruption of your business less expenses that do not continue during the interruption. The form also pays for the reasonable extra expenses incurred to reduce or prevent interruption of your business. Back to top

Business Interruption - Valued Form (BM1525)
This coverage is designed to pay for loss of earnings by eliminating the problem of determining the amount of coverage required to comply with the coinsurance requirements found in standard business interruption forms. It simplifies loss adjustment by paying a pre-agreed amount for each day of business interruption regardless of the actual loss that is sustained. Recovery is stipulated as a set amount per day in case of total loss, or a pro rata of that amount in case of partial shutdown. Back to top

Co-Insurance Waived
This endorsement is used to eliminate the coinsurance requirements in your policy for certain types of equipment, such as electrical switchboards. Back to top

Combined BI/EE (BM1529, BM1533)
This coverage will reimburse you for loss caused by the slowdown or shutdown of your operations which results in additional expenses and loss of business income. Back to top

Comprehensive Coverage
This coverage is used to provide automatic protection for all boiler and machinery objects unless specifically excluded. This is the broadest form of protection available for these items. Back to top

Computerized Production Equipment
This endorsement is used to extend the policy to include coverage for loss to electronic equipment used in production activities. Back to top

Consequential Damage (BM1528)
This endorsement is used to extend your Boiler & Machinery policy to insure against loss of specified property from lack of power, light, heat or refrigeration that results from an accident. This is necessary since you are involved with products that can be susceptible to this type of loss. These can include perishable food items, growing crops, milk products, plants or similar items. Back to top

Deductible
A policy may include a deductible in its provisions. This limit specifies the amount that will be deducted from any payment made to you because of a covered loss. Back to top

Electrical Apparatus Coverage
This coverage is used to provide protection for damage to electrical circuit breakers, switchgear or panels caused by arcing or electrical short circuit. Back to top

Equip. Covered: Boiler/Machinery
This coverage will provide protection for your boilers or machinery when loss occurs from:

(1) explosion of pressurized vessels,
(2) mechanical breakdown caused by centrifugal force, or
(3) burnout of electrical equipment caused by overload or surge.

This is neededbecause your standard Property policy excludes losses of this kind.
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Expediting Expenses Limit Reviewed (BM9934, BM9938)
This coverage is used to pay for the extra costs incurred for making temporary repairs or for hastening the repair of damaged property. Back to top

Extra Expense Coverage (BM1527)
This coverage is written to provide the necessary additional expenses incurred to continue business when a covered loss damages or destroys your insured property. Back to top

Farm Boiler & Machinery
Although not normally considered, farming/ranching operations such as yours can be involved in several kinds of activities which require Boiler & Machinery coverage. This not only includes permanently fixed equipment such as refrigeration units, heating or cooling machines or pressurized vessels, but may involve an array of off-premises or mobile equipment. Back to top

Hazardous Substance Limit Reviewed (BM9938)
This coverage is used to cover expenses you incur to pay for the clean up, repair or disposal of covered property that is declared hazardous by a governmental agency. Back to top

Joint Loss Agreement (CP1260)
Losses involving boiler and machinery can raise questions as to whether your boiler insurer or property insurer will cover the loss. For example, if there is no conclusion as to whether a fire had short-circuited a panel, or a short circuit originating in a panel caused the fire, problems could arise. To avoid this problem, a joint loss agreement between your fire and boiler and machinery carriers can be used to ensure adequate protection is provided. Back to top

Medical Equipment Coverage
This endorsement is used to extend the Boiler and Machinery policy to include protection for equipment used for research, diagnostic, medical, surgical or pathological purposes. Back to top

Objects Not In Use Covered
This endorsement is used to extend the policy to cover machinery damaged while being repaired, dismantled or assembled. It is important since standard Boiler and Machinery policies exclude coverage for items not in use or ready for use at the time of loss. Back to top

Property Damage Liability
This coverage is written to protect you against claims for damage to property of others that is in your care, custody or control caused by a covered accident. Back to top

Replacement Cost Valuation
When added, this endorsement changes the policy's loss valuation from an "actual cash value" to a "replacement cost" basis. The market value of your insured equipment can be thousands of dollars less than the replacement value needed to replace such equipment. This endorsement ensures full replacement without deduction for depreciation. Back to top

Selling Price Valuation
This coverage is used to extend your Property policy to insure both the cost of your stock and normal profit in case of loss. It is added because, even with replacement cost coverage, most Property forms are normally written to only pay for the cost to recreate or purchase the lost product without reimbursement for normal profit. Back to top

Testing Coverage
This endorsement is used to modify the Boiler and Machinery policy to cover loss to newly acquired equipment or equipment that has been
damaged or repaired and is being tested. Standard policies exclude coverage for accidents that occur during testing. Back to top

Utility Interruption (BM1535)
This coverage will protect against loss caused by the interruption of power off premises due to a covered peril. Back to top

Waiting Period
This policy provision is used to specify the minimum period of time you must wait until coverage goes into effect. It is a form of deductible that is used with your Business Interruption coverage. Back to top

Water Damage Limit Reviewed
This coverage is used to insure against loss resulting from water leakage when refrigerating or air conditioning systems are insured. Back to top