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.

Cover
Various types of mobile equipments like earthmovers, excavators, cranes in particular location are covered. The policy is restricted to a particular location.

Who can be Insured ?
The owners of the plant and machinery. Financier interest if any involved is preserved by including it as a joint name.

What is insured ?
CPM Policy can be issued by covering equipment on Anywhere in India basis with the following provisions:
Full description with identification no. of each and every equipment with valuation should be declared.
Transit risks from site to site will be excluded.
Loading of 10% on the basic CPM rate shall be charged to cover floater risks.

Insured against what risk?
This policy shall cover any unforeseen and sudden physical damage to the property by any cause not specially excluded. This policy shall apply to the insured item whether:

They are at work
or at rest
or being dismantled for the purpose of cleaning or overhauling
or when being shifted within the premises
or subsequent re-erection.

What will Policy Pay and how much?
Partial loss
Full cost of replacement of parts plus repair charges, cost of dismantling and re-erection. Depreciation is applied only for the parts with limited life. If the repair works are undertaken by the insured, actual material and labour costs plus a reasonable quantum of overheads is payable. Salvage is deducted. If the suminsured is not adequate, policy pays only proportionately.

Total loss
The actual market value of item immediately before the occurrence of loss, less salvage and depreciation subject to adequacy of suminsured
In both cases freight and customs duty are also paid if they are included in suminsured. Policy excess is deducted from the claim.

What will policy not pay ?
Loss or damage due to: -
Electrical or mechanical breakdown or boiler explosion .
Replaceable parts like bits, knives, ropes & bolts, chains etc., wear and tear, corrosion, damage whilst in transit, war and nuclear perils.
When undergoing test or while used for a purpose different from what was originally intended .
Damage due to accidents to carrying vehicle /train/vessel/and craft.
Damage to plant&machinery working underground .
Contractual liability, consequential loss, existing defect, inventory loss.

Related Policies
Boiler & Pressure Plant Insurance
Deterioration of Stock Policy
Electronic Equipment Policy
Industrial All Risk Policy
Machinery Breakdown Policy

Boiler & Pressure Plant Insurance
We Cover
Boilers like fire tube boilers/recovery boilers and unfired pressure vessels/steam pipes can be covered.
Who can be Insured ?
The owners of the boiler/ pressure plant can take insurance.
What is insured ?
This policy affords protection against
Damage to the boilers and/or pressure vessels
Damage to the surrounding property of the insured
Liability of the insured by law to any third party on account of
death or bodily injury
damage to property (not held in trust or in commission) caused by and solely due to explosion or collapse occuring in the course of ordinary working.

What will Policy Pay and how much?

Partial loss
In cases where damage to an item can be repaired, the policy shall pay expenses necessarily incurred plus the cost of dismantling and re-erection. No deduction for depreciation but salvage value is deductible.

Total loss
Where an insured item is destroyed, the company pays the actual market value of the item immediately before the occurrence of loss including freight and erection cost. The salvage shall be taken into account and condition of average will apply (i.e. if sum insured is not adequate, claim will be paid only proportionately)

What will policy not pay ?
Fire related losses including extinguishment
Act of God perils
Gradually developing flaws
Wearing away or wasting of the materials of a boiler like blockage, corrosion, fracturing, blisters, lamination.
Failure of individual tubes
War group and nuclear group of perils
Experiments/tests requiring abnormal conditions
Defects, fracture, failure, deformation/bulging not resulting in explosion
Consequential loss, loss arising out of existing defects known to insured
Loss/damage for which manufacturer/ repairer is responsible
Wilful act/neglect or gross negligence of insured.

Industrial All Risks
Scope of Cover
All industrial risks (other than risks rateable under Petrochemical Tariff) having overall Sum Insured of Rs. 100 Crores and above in one or more locations in India are eligible
This is a package policy with the following covers:
Fire and Special Perils including Flood, Storm, Tempest
Earthquake, Fire & Shock
Consequential Loss (Fire)
Machinery Breakdown, Boiler Explosion, Electronic Equipment
Machinery Breakdown - Optional
Basic Insurance
Buildings, Machinery, Furniture, Fixtures, Fittings & Electrical Installations shall be on reinstatement value basis only.
Stocks shall be covered on market value basis. Facility of declarations for stocks are not available under this policy.
Under insurance on each to the extent of 15% will be ignored.
Compulsory Deductibles

This policy is a Compehensive Package Policy which covers almost all risks and perils, which a large industry may face during its operation.This policy covers Buildings, Machinery, Furniture, Fixtures, Fitting & electrical installations on Reinstatement value, while the stock is covered on market value basis. Underinsurance on each item of the schedule will be ignored if it does not exceed 15% of sum insured. Policy also covers equipments and machinery sent for repairs outside the premises for a period of 60 days. Transit risk inside the compound of an industry is also covered.

Monoline – Machinery Breakdown insurance can be purchased on a stand-alone basis when Chubb is not providing the property policy. This ISO-based policy provides insurance for direct physical loss or damage. Machinery Breakdown losses can go beyond the repair or replacement cost of damaged equipment. We can enhance our Machinery Breakdown policy to include indirect losses that result from a breakdown including:

Business Interruption
Extra Expense
Spoilage
Ammonia Contamination
Utility Interruption

Why does a company need Chubb’s Machinery Breakdown policy? Consider the following scenarios:
On start-up, a crack develops in an aluminum extrusion press of a metalworking operation, halting production for 30 days. The total property and business income loss is $850,000. Voltage spikes from a utility supplier causes severe electrical damage in a water treatment facility’s main transformer. The cost for the transformer replacement, as well as a temporary transformer rental, exceeds $425,000. A high-rise apartment complex is heated by a large steam boiler. A safety relief valve fails and creates excessive pressure that causes an explosion. The cost of the boiler replacement, and the surrounding building damage, totals $350,000.
Don't take chances - protect your business with Chubb's Machinery Breakdown insurance.

Service and Strength
At Chubb, we deliver more than solid insurance products. We support our customers through our renowned services, extensive global network and financial strength. Often imitated, never duplicated, Chubb’s reputation for service is built on a consistent track record of performance. Our loss prevention and risk consulting professionals identify potential hazards and help to mitigate or prevent loss. Our dedicated machinery breakdown claim unit handles all monoline and package losses, providing superior service through a consistent, team-oriented approach to complex claim issues. Plus, we make it easy to report claims anytime/anywhere through a toll-free number or via the Internet should a loss occur. Our financial strength continues to earn high ratings from A.M. Best, Standard & Poor’s and Moody’s, leading evaluators of insurance companies. Financial strength, combined with our underwriting expertise and claim service, means you can count on Chubb to be there when you need us most.

Industrial equipments include heavy machinery which is indispensable for day to day operation of any industry or company. They are special in nature and so they carry high price tags. However such expensive equipments can be acquired by way of industrial equipment financing provided by some genuine financing companies.Heavy machinery equipments normally refer to heavy machinery like bull dozer, back hoes, cranes etc which are essential for construction industry. Backhoe financing which is a part of industry equipment financing helps to acquire backhoes. It is a combination of bulldozer and digger which helps in digging and transporting dirt materials. It is heavy machinery that calls for expensive rates. Therefore any industry wants to acquire this equipment generally depends on loans.Crusher equipments are generally required by mining or construction industry to crush materials into smaller size pieces. The crushers come in various models and sizes. The sophisticated nature of this equipment makes it extremely expensive. Therefore industrial equipment financing is the best possible way to acquire it. However, investing in this equipment is always worth. Paver machine, concrete equipment, punches and press equipments, construction equipments are some other equipment that plays a vital role in smooth operation of many industries. These equipments may vary in prices and so seeking the industrial equipment financing help can be considered. Since the reliable companies offer loans at low interest rates and without any unnecessary delay, it is often advisable to go for such loans.

Material handling equipments like conveyors, specialty racks, containers are essential to carry heavy goods from one place to another. These equipments are vitally important for any industry. Industrial equipment financing is often required to buy these equipments since they do not provide direct revenue to the company. Containers help in easy transportation of freights. Containers vary in sizes. Some big metal containers can carry even cars or trucks. Hence they are essential for manufacturing industries to acquire containers. However they are extremely high and industrial equipment financing helps buy the expensive containers.Packaging equipments include container fillers, sealers, and conveyor belts and so on. Investing your own money on packaging equipments is not advisable since they do not generate any direct revenue. So getting the financial assistance of some valid financial companies often provide great benefits. You can therefore use packaging equipments into your business without spending lump sum money at a time.

Waste management and recycling equipments are often essential for many industries in order to reduce the garbage in the industry and to keep the environment clean. Waste and recycling equipments like tire shredder, waste separator etc can help in waste management and help you manage your budget. Industrial equipment financing is available for waste management and recycling equipment also.Some genuine financing companies help acquire industrial equipments and you can submit the online application form to get the loan approval. These companies do not waste longer period of time for approving your loan. You can get instant approval. Again there are no embarrassing procedures required to get the financial help. Hence many industries rely highly on these companies to acquire any equipment.When it comes to setting up a new business, it can be difficult to come to terms with business terminology - especially if the process of setting up and running a company is completely alien to you. For instance, speaking to your bank about asset and sales finance may be a daunting notion in itself; but when you consider the possibility of getting tangled up in the jargon - and perhaps even losing credibility with your bank - the experience seems even more intimidating. However, if you keep your wits about you and make sure that you're up to date on the latest financial terms, your bank's asset and finance solutions are sure to benefit your business.

Make sure you begin with the basics: for starters, familiarize yourself with what asset and sales finance is. Essentially, asset and sales finance is a service through which banks can help businesses obtain a range of equipment - including plant and machinery, IT equipment, commercial vehicles, office furniture and cars, among a range of other necessary business items. The fundamental difference between asset financing and sales financing is that sales financing will help businesses obtain quick access to cash, while asset financing helps companies fund business equipment. Cost-effective and expedient sales financing solutions will help businesses find enough working capital for operation. Factoring and invoice discounting are two important sales financing solutions. With factoring, for instance, up to 95 per cent of the value of approved invoices can be advanced within a certain time period, with the balance being paid on receipt. Invoice discounting involves a similar process, but with one crucial difference: in factoring, the client's customers are aware of the bank's involvement, whereas in invoice discounting they are unaware.