Which losses are covered under Boiler and Machinery policy?

• A. Explosion, overheating, burning and cracking
• B. Leaking at the valve, fitting or shaft
• C. The functioning of a safety device
• D. Depletion, deterioration and wear and tear

Answer: (A)

Boiler and Machinery coverage is about direct, sudden damage to boilers and other covered equipment from specific perils. The losses that are typically insured are events that cause immediate, physical harm to the equipment, such as an explosion, overheating (where excessive internal heat causes damage), burning, and cracking due to stress. These represent abrupt damage that the policy is designed to indemnify.

Gradual issues like wear and tear, deterioration, or depletion are not covered because they develop over time rather than from a single damaging event. Leaking at a valve, fitting, or shaft isn’t listed as one of the covered perils and may be excluded unless caused by a covered peril. The functioning or malfunction of a safety device isn’t the type of loss the policy is designed to insure in this context, so that option isn’t fitting either.

So the correct choice reflects the perils that directly cause covered damage to boilers and machinery: explosion, overheating, burning and cracking.