What is the primary purpose of boiler and machinery insurance?

The primary purpose of boiler and machinery insurance is to protect against equipment breakdowns. This type of insurance provides coverage for mechanical and electrical failure of equipment like boilers, machinery, and similar systems. When such equipment fails, it can lead to significant downtime and costly repairs, which can adversely affect a business’s operations and financial stability.

Boiler and machinery insurance specifically addresses the risks associated with the physical damage to these machines and the resulting loss of income that may occur during the downtime required for repairs or replacement. This coverage is crucial for industries that rely heavily on equipment and machinery for their day-to-day operations, ensuring they can resume function quickly after a breakdown without incurring severe financial hardship.

In contrast, options like liability for workplace injuries or theft of machinery address different aspects of risk management that are not specific to the breakdown of machinery. Similarly, insuring vehicles used in operations relates to transportation and auto-related risk, which falls outside the scope of boiler and machinery insurance. Hence, the distinction lies in the specific focus on equipment breakdown, making it the core purpose of this type of insurance.