Standard property insurance policies normally exclude coverage for losses caused by mechanical breakdown, artificially generated electrical current, and explosions of high pressure steam boilers. Boiler insurance provides a way to buy coverage for those types of losses.
Boiler insurance can cover:
- specific objects - "A specific boiler identified by year and/or serial number"
- blanket objects - "blanket all electric motors"
- comprehensive - "all objects unless specifically excluded"
In the United States, companies providing boiler insurance will generally perform jurisdictionally required boiler inspections as a "free service" and require a passing inspection as a condition of coverage. Twenty percent of a Boiler and Machinery policy is dedicated to boiler inspection.
Boiler insurance may alternatively be referred to as "equipment breakdown insurance", "machinery and equipment insurance" or any other such name.