Equipment breakdown (formerly boiler & machinery) covers sudden mechanical, electrical, or pressure-system failure of insured equipment. Carriers, MGAs, and TPAs need a platform that handles object schedules and jurisdictional inspection workflow.
Equipment breakdown insurance — historically known as boiler & machinery — covers sudden and accidental breakdown of insured equipment from internal causes: electrical arcing, mechanical failure, pressure-system rupture, and computer-system breakdown. It pays for repair or replacement of the equipment plus business income and expediting expense.
This page is a line-of-business reference for equipment-breakdown carriers, MGAs, TPAs, and program administrators evaluating a policy administration platform with object scheduling and jurisdictional-inspection workflow.
Equipment breakdown pays for direct damage to insured equipment from sudden internal causes (electrical arcing, motor burnout, boiler rupture) and for the resulting business income and expediting expense.
It is the complement to commercial property: property covers external causes (fire, wind, hail), equipment breakdown covers internal mechanical and electrical causes.
Equipment-breakdown rating is driven by an object schedule: pressure vessels, boilers, chillers, HVAC, transformers, electrical-distribution gear, production machinery. Each object has a class, age, capacity, and inspection record.
Mercury supports configurable object schedules with itemized capacity and age, inspection-due workflow, and rating tables that weight high-energy objects separately from low-energy ones.
Pressure vessels and boilers are subject to jurisdictional inspection by state inspectors or accredited insurance-company inspectors (the carrier acts as the AI on behalf of the state). The carrier's inspection schedule and reporting are integral to the product.
Mercury supports configurable inspection-due dates, inspector assignments, jurisdictional reporting workflow, and integration with inspection-management systems through the API-first architecture.
Equipment breakdown is written either as a standalone monoline policy or as an endorsement (ISO EB or carrier-proprietary) to a commercial property or BOP policy.
Mercury's configurable forms library supports monoline EB, endorsed EB on CP / BP, and proprietary equipment-breakdown forms on the same policy administration tenant.
Does Mercury support equipment breakdown as a monoline policy and as an endorsement?
Yes. Mercury's product configuration supports monoline equipment-breakdown policies and EB endorsements on commercial property or BOP, on the same policy administration tenant.
Can Mercury manage jurisdictional inspection workflow on insured objects?
Yes. Mercury supports configurable inspection-due dates, inspector assignments, and jurisdictional reporting workflow, with API-first integration to inspection-management systems.
Does Mercury rate equipment breakdown on object class and capacity?
Yes. Mercury's rating engine supports object-class and capacity-based rating with date-driven rate tables and modifier rules through the policy lifecycle.
