Boiler and machinery insurance is typically used to cover which of the following risks?

• A. Equipment breakdown and damage to boilers and machinery
• B. Earthquake risk
• C. Falling trees onto building
• D. Employee injuries

Answer: (A)

Boiler and machinery insurance is designed to cover equipment breakdown and damage to boilers and the related machinery that keeps a building or facility operating. When covered equipment fails suddenly—like a boiler, pump, compressor, or motor—the policy helps pay for repair or replacement of that equipment and any resulting damage to the surrounding systems or property, and it can even cover certain business interruption losses caused by the failure. This kind of coverage is meant for the mechanical or electrical failure of the equipment itself, not for external perils or injuries.

Earthquake risk, falling trees onto the building, and employee injuries are handled by other coverages (such as earthquake or property insurance, and workers’ compensation or general liability). So the risk specifically addressed by boiler and machinery insurance is the equipment’s breakdown and the resulting damage to the boilers and machinery.