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Risk Management




Bryan K. Heckle

Richard Bolyard
Loss Control and Claims Specialist

Boiler and Machinery

Boiler and machinery insurance (usually referred to as “breakdown insurance”) may cover loss resulting from sudden and accidental breakdown of objects such as boilers, air conditioning and refrigerating systems, pumps, compressors, turbines, engines, wheels, gears, electrical distribution equipment and transformers. However, the State’s boiler and machinery insurance covers only boilers and fired vessels, unfired vessels which require jurisdictional inspections and refrigerating systems having vessels which require jurisdictional inspections. (Refer to NC Boiler Inspection Criteria for a description of the type of equipment requiring inspection by The Uniform Boiler and Pressure Vessel Act of North Carolina)

The property insurance provided by the State Property Fire Insurance Fund may cover losses to the above equipment caused by fire, wind, or one of the covered perils in the Fund’s policies. However, the Fund’s policies, as with other “commercial property” insurance policies, contain exclusions for losses caused by steam boiler explosions and mechanical breakdown. The boiler and machinery insurance is intended to plug these gaps, covering physical damage to the insured objects and other property that results from a covered accident.

The Hartford Steam Boiler Inspection and Insurance Company provides insurance and the jurisdictional inspections for the State’s boiler and machinery equipment. Following are the limits and deductibles under the State’s Boiler and Machinery policy:

  • Equipment Breakdown Limit - $50,000,000
    • Off Premises Property Damage - $500,000
    • Extra Expense - $500,000
    • Data Restoration - $500,000
    • Demolition - $500,000
    • Ordinance or Law - $500,000
    • Expediting Expense - $500,000
    • Hazardous Substances - $500,000
    • Newly Acquired Locations - $1,000,000
  • Deductibles
    • Combined - $5,000, except
    • Water Tube Boilers >40,000 pph - $25,000
    • Water Tube Boilers >200,000 pph - $100,000