Property Insurance
Boiler and Pressure Vessel Insurance
Boiler and Pressure Vessel Insurance is a specialized insurance policy that provides coverage against accidents, explosions, and breakdowns of boilers, pressure vessels, and other pressurized systems used in industrial operations. It helps businesses cover repair costs, third-party liabilities, and business interruption resulting from boiler and pressure vessel failures.
Why is Boiler and Pressure Vessel Insurance Essential?
- Protection Against Explosions & Accidents
- Covers Expensive Repairs & Replacement
- Legal & Regulatory Compliance
- Covers Third-Party Liability
- Ensures Business Continuity
Important Things You Should Note
- Regular Maintenance is a Must – Claims may be denied if equipment was not properly maintained.
- Covers Sudden & Accidental Damage – Normal wear and tear is not covered.
- Different Policies for Different Industries – Coverage may vary for manufacturing, power plants, or refineries.
- Third-Party Liability Protection – Policies can include coverage for injuries and property damage caused by boiler failure.
- Inspections are Required – Many insurers require periodic inspections to ensure the boiler is in safe working condition.
What is Covered & What is Not Covered?
What is Covered?
- Damage Due to Explosion or Collapse – Covers physical damage caused by sudden explosions or pressure failure.
- Mechanical and Electrical Breakdown – Covers damage from mechanical failures, overheating, or sudden malfunctions.
- Third-Party Liability – Covers legal liabilities if the accident causes injury or property damage.
- Damage to Surrounding Property – Pays for repair or rebuilding costs if a boiler failure damages nearby structures.
- Business Interruption Losses – Some policies provide coverage for lost income due to downtime.
What is Not Covered (Exclusions)?
- Gradual Wear & Tear – Normal aging, rust, or corrosion is not covered.
- Negligence or Poor Maintenance – If the failure is due to lack of maintenance, the claim may be denied.
- Pre-Existing Defects – Any damage that existed before purchasing the policy is not covered.
- Damage from Natural Disasters – Losses from earthquakes, floods, or storms may require separate coverage.
- Illegal or Unapproved Installations – If the boiler or pressure vessel does not meet safety regulations, coverage may be voided.
Frequently Asked Questions (FAQs)
Is this insurance mandatory?
Yes, in many industries, government regulations require insurance for boilers and pressure vessels due to the risks involved.
How often should I inspect my boiler to maintain coverage?
Most insurers require regular inspections (usually annually) by a certified engineer to ensure continued coverage.
Does this policy cover temporary replacement costs?
Some policies offer coverage for temporary boiler rentals or increased operational costs during repairs.
Can I extend coverage for natural disasters?
Yes, insurers offer add-on coverage for natural disasters like earthquakes and floods.
How do I file a claim?
In case of an accident:
- Report the damage to the insurer immediately.
- Provide inspection and maintenance records.
- Submit repair estimates and other supporting documents.
- The insurer will assess the damage and approve the claim.
