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Why Businesses Need Boiler And Machinery Insurance

Aug 17, 2007
Boiler and machinery insurance refers to the insurance of machines. Boiler insurance is not only applicable to boilers, but any machines that generate electrical power including generators and motors. It includes the damage to the machine and the surrounding area through explosions and fire.

If you have ever tried to settle a simple insurance claim related to the breakdown or damage of a machine or equipment, you know how difficult it is to get the company to pay for additional damages like destruction of property and loss of business. This type of insurance covers not just the damage to the machine, but also other damages caused by the malfunctioning machine. These damages may include business loss and property damage. In fact, some types also cover damages to neighboring properties, and pay for setting up temporary arrangements to run the business.

Anyone who runs any kind of business that uses electrical or mechanical devices of some sort should buy this type of policy. Many people have the misconception that this is only for large factories and manufacturing units. As a small business owner, you probably do not use heavy machines, but even the smallest of businesses use equipment like air conditioners, refrigerators, ovens, and coffee machines. A malfunction in any of this equipment could cause an explosion or fire, damage to property and business loss. It will cover all these damages.

There are different types of Boiler and Machinery Insurance. Some kinds cover a specific boiler, which is recognized by year of manufacturing or number. Other policies cover electrical motors. The more extensive policies cover all kinds of machinery and equipment, as well as damage caused by equipment malfunction.

Most small business owners opt for the policy to cover the items that are not covered by other kinds of insurance policies, like property or vehicle insurance. Choose a policy that not just pays you for the damaged machine, but also helps you recover from business losses caused by the accident. This means that you should look for a policy that will help you set up a temporary business unit after an accident, pay for damages to the property and compensate for business losses.

Additional Help
If you are a small business owner who is unsure of which boiler and machinery insurance policy to opt for, you can approach a small business consultant for help. Insuring your machine is the best way to safeguard yourself from not just damage to your equipment, but also business losses.
About the Author
David Gass is President of Business Credit Services, Inc. His company publishes a free weekly e-newsletter on Small Business Consulting at their web site http://www.smallbusinessconsulting.com
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