Thank you for sharing!

Your article was successfully shared with the contacts you provided.


Summary: Boiler and machinery insurance was viewed by many in the insurance industry as complicated and mysterious. Over the years, this coverage has undergone a transformation from a highly specialized and arcane coverage, underwritten and usually marketed by experts in the coverage, to a commonplace coverage sold along with other lines by many insurers and most general lines producers. This article offers an introduction to boiler and machinery insurance, briefly tracing its historical development and describing the coverage forms that provide the insurance up to the renaming of the program to equipment breakdown.

Topics covered: History of B&M / Equipment Breakdown ISO program Form designations Rules and rating information

History of B&M / Equipment Breakdown

Boiler and machinery, historically regarded as a “casualty” coverage although in many ways more closely resembling property insurance, had its beginnings in 1866—as an adjunct to boiler inspection service. It was the first intensive application in the insurance field of loss control to avoid accidents rather than the simple use of insurance to pay for the consequences of accidents when they occur. To this day—unique among insurance coverages—boiler and machinery underwriting and inspection expenses comprise a larger portion of the premium with most insurers than do loss payments and claim expenses.

For many years, boiler and machinery insurance was one of the most stable and unchanging lines of insurance. Because of the intensive loss control activities, claims experience remained stable even in periods of general underwriting unprofitability, and because of the esoteric nature of the coverage, there was little pressure for change.

This premium content is locked for
Insurance Coverage Law Center subscribers only.

Start a free trial to enjoy unlimited access to the single source of objective legal analysis, practical insights, and news for the insurance industry.

  • Access the most current expert analysis and daily developments across jurisdictions
  • Solve complex research issues with expert tools and intelligence
  • Tap into insurance coverage expert guidance

Already have an account?
For enterprise-wide or corporate access, please contact our Sales Department at 1-800-543-0874 or email [email protected].

ICLC Staff Writer


Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.