Last week we looked at the fundamentals of boiler and machinery insurance.  The next practical step is to engage with a professional who can tailor a policy to your specific operations. To help you navigate that conversation effectively, we have created a checklist for you.

The following checklist translates the key concepts we discussed last week into direct, actionable questions. Bringing this list to your meeting with an insurance agent or broker will ensure you cover critical details, identify potential gaps in your current protection, and secure a policy that truly matches your business’s risk profile.

Checklist: Questions to Ask Your Insurance Agent

• Scope of Definition: Does this policy explicitly cover mechanical breakdown, electrical arcing, and steam explosion, or are there specific limitations on the types of “accidents” covered?
• Business Interruption Specifics: How is “period of restoration” defined for business income coverage? Does the coverage kick in immediately, or is there a waiting period (time deductible) before lost income is reimbursed?
• Spoilage Limits: If my business relies on refrigeration, what is the sub-limit for spoilage coverage? Is this limit high enough to cover my total inventory during peak seasons?
• Policy Integration: Is it more cost-effective and comprehensive to add this coverage as an endorsement to my existing Commercial Property Policy, or should I purchase a standalone Equipment Breakdown policy?
• Clarifying Exclusions: Can you walk me through the specific exclusions regarding “wear and tear” versus “sudden and accidental” breakdown? How does the insurer distinguish between a lack of maintenance and a legitimate accident?
• Valuation Method: In the event of a total failure, will the equipment be replaced based on “Replacement Cost” (the cost of a new unit) or “Actual Cash Value” (depreciated value)?
• Jurisdictional Inspections: Does this insurance carrier provide the state-mandated boiler and pressure vessel inspections required by law, and are the fees for these inspections included in the premium?
• Expediting Expenses: Does the policy cover the extra costs for temporary repairs or expedited shipping of parts to get my business running again quickly?
• Ordinance or Law: If my equipment breaks and local building codes require me to upgrade to a newer, greener, or safer standard, will the policy cover the increased cost of that upgrade?
• Deductible Structure: Is the deductible a flat dollar amount per event, or is it a percentage of the loss? How does the deductible apply to business interruption claims?