Commercial insurance options
Or, quote another product
Boiler and machinery insurance
Coverage for unexpected equipment breakdowns
Customizable boiler and machinery insurance coverage to fit your needs
When essential equipment breaks down, it can interrupt your work, delay orders, and lead to other unexpected costs. For many businesses, even a short disruption can affect their daily work. Boiler and machinery insurance, also known as equipment breakdown coverage, is one way to prepare for those moments. Tailor it to the systems you rely on, so you can handle setbacks and keep your business moving.
What is boiler and machinery insurance?
Boiler and machinery insurance is coverage that pays to repair or replace equipment damaged by sudden mechanical or electrical failure. It's especially helpful if your business depends on equipment like:
- Commercial kitchen equipment, including refrigeration and ovens
- Manufacturing and production machines
- Heating and cooling systems
- Electrical systems such as panels, wiring, and transformers
Boiler and machinery insurance can be added to your business owners policy (BOP). To learn more, get a quote for boiler and machinery coverage with Progressive Commercial.
Who needs boiler and machinery insurance?
Any business that depends on equipment to serve customers or produce goods should consider boiler and machinery coverage. It can help reduce the financial impact of repairs and service interruptions.
Boiler insurance coverage may benefit:
- Restaurants and caterers
- Manufacturers
- Grocery stores and other retailers
- Contractors, landscapers, and arborists
- Dry cleaners and laundry services
- Data centers and IT operations
How boiler and machinery coverage works
Boiler and machinery coverage works by filling a gap in standard property insurance. While commercial property coverage typically responds to external events like fire and weather, boiler and machinery protection steps in when equipment breaks down due to internal issues.
In practice, that means if a key system fails, this coverage can step in to help with repair costs and equipment repair or replacement. It also helps support your business while operations are interrupted. It typically applies to:
- Sudden equipment failures, not gradual wear and tear
- Repair or replacement of machinery such as HVAC systems, refrigeration, computers, and manufacturing equipment
- Lost revenue and costs tied to business interruption
What doesn't boiler and machinery insurance cover?
Boiler and machinery insurance covers sudden and accidental equipment breakdowns. Like most types of business insurance, certain exclusions apply. The following conditions probably won't be covered:
- Normal wear and tear: Equipment breakdown caused by normal wear and tear or poor maintenance.
- Gradual deterioration or corrosion: Damage that develops because of age.
- Intentional damage or misuse: Losses resulting from intentional acts or improper use of equipment.
- Software and data loss: Computer hardware may be covered, but software and data often require a separate cyber insurance policy.
- Preexisting conditions: Equipment with issues before coverage begins.
Understanding exclusions helps you see how boiler and machinery insurance fits into your overall insurance plan. Reviewing your equipment, maintenance practices, and coverage limits ensures your protection aligns with your operations.
Regular maintenance can help reduce equipment breakdowns
While not all equipment failures can be avoided, routine maintenance can help lower the chance of unexpected breakdowns. The American National Standards Institute recommends regular inspections, addressing small issues early, and following manufacturer recommendations to keep equipment running smoothly.
Boiler and machinery insurance claim examples
The table below illustrates how commercial property and equipment breakdown coverages operate when systems malfunction or fail:
| Equipment issue |
Related damage |
How boiler and machinery insurance helps |
How commercial property insurance typically works |
|---|---|---|---|
| Walk-in cooler condenser fails | Food stored inside reaches unsafe temperatures and must be discarded | Covers repairs to the unit and spoiled inventory losses | May not cover spoilage or the internal failure of the condenser |
| Electrical panel short-circuits | Connected equipment shuts down and sensitive electronics are damaged | Covers panel repairs and damage to equipment affected by the failure | May exclude damage caused by electrical breakdown unless caused by a fire or external event |
| HVAC system control board | Temperature control is lost, disrupting operations and comfort | Covers repair costs and losses tied to the interruption | Often won't cover internal system failures or related downtime |
| Manufacturing machine gearbox breaks | Production halts and partially completed materials are unusable | Covers equipment repairs and losses related to downtime | Mechanical breakdown is typically excluded, and lost production isn't covered |
| Elevator motor fails in a multi-story building | Limited access restricts normal business operations | Covers repair costs and operational disruption | Motor failure itself is usually excluded |
| Water heater tank ruptures | Hot water damages floors, walls, and nearby equipment | Covers repair or replacement of the water heater and related losses | May cover resulting water damage but not the failed water heater |
As the examples show, commercial property coverage may help with the resulting damage, but it often excludes the equipment breakdown itself and related downtime. Boiler and machinery insurance helps fill these gaps.
Beyond boiler coverage
You may need different types of coverage for different types of equipment. Tools and equipment protection applies when your gear is in transit or stored off-site. Business personal property (BPP) coverage focuses on moveable items kept at your business, such as furniture, tools, office supplies, and computers.
Together, they can help account for equipment that's not covered by boiler and machinery insurance.
How much does boiler and machinery insurance cost?
Boiler insurance cost varies based on several factors, such as:
- Equipment type: Complex or specialized systems often cost more to insure
- Age and condition: Older equipment can increase costs due to more wear and tear
- Industry risk: Certain industries have higher equipment failure rates and will probably pay more for coverage
- Business size: Larger operations with more equipment can have a more expensive rate
- Coverage limits and deductibles: More protection and lower deductibles usually increase costs
- Maintenance history: Strong maintenance records may improve rates
The best way to learn what you'll pay for boiler and machinery insurance is to get a quote.
Why choose Progressive Commercial
Progressive Commercial has been helping small businesses for more than 50 years. We offer flexible policy options and support from licensed agents to help you find coverage that fits your operations.
Whether you're managing a single location or multiple sites, we can help you find boiler and machinery coverage designed for how you work. Start a quote to get the protection you need.
Frequently asked questions
What's the difference in boiler and machinery vs. equipment breakdown coverage?
They're the same type of coverage. Equipment breakdown is the more modern term, but both protect against sudden and accidental internal equipment failures.
Does commercial property insurance cover equipment failure?
Not usually. Standard property insurance can cover external events like fire, theft, or weather. It usually won't cover internal equipment breakdown.
Do manufacturer's warranties cover equipment failure?
Probably not. Manufacturers may cover the equipment itself but not related damage, lost revenue, or business interruption. Review your warranties for a clearer sense of timeframes and exclusions.
Is boiler and machinery insurance required?
It depends. Boiler and machinery insurance isn't often required by law, but contracts, lenders, or lease agreements may say you need it.
Is boiler and machinery coverage included in a business owners policy (BOP)?
No, boiler and machinery coverage isn't usually included in a BOP. You can add it via an endorsement when buying your policy.
