Crane Collapses in New York 2 of 32 Apartments Have Tenant Insurance

6.25% of the Tenants Had Renters Insurance or a Tenant Insurance Policy

Only two of 32 renters interviewed by the New York State Insurance Department following last month’s crane collapse on New York City’s East Side were protected by tenants insurance.

That low number is hardly surprising. Nationally, a 2006 survey by the Insurance Research Council found that only 43 percent of all renters were insured. In New York City, that percentage is believed to be significantly lower because of the high cost of living.

Some renters may believe – mistakenly – that their personal property is covered by a building owner’s insurance. Others, like recent college graduates, may be unaware of tenants insurance and some simply decide not to buy it.*

Boiler & Machinery Insurance: The Flood Effect

How is Boiler & Machinery Insurance & The Flood Effect Similar & Various Facts About Each.

Boiler and Machinery Insurance Coverage.
What is it and what does it cover?

The fact that flood is an noted exclusion on a homeowners policy was a little known fact before Hurricane Katrina hit the Eastern and Southern shores of the US. Similar to flood insurance, another little known fact among the insurance industry is that:

"Boiler and Machinery Insurance Coverage is a standard exclusion on most Property and Business Owners Insurance Policies."

So what does Boiler and Machinery Insurance cover?

Boiler and Machinery Insurance Coverage, or the most prevalently used industry term, and, for the purposes of this article, we will use the term equipment breakdown, is provided for loss of or damage to steam boilers, pressure vessels, steam pipes, steam engines, steam turbines, electrical equipment, air conditioning, refrigeration systems, PC’s, production and mechanical equipment. It covers mechanical failure, motor burnout, short circuits and electrical arcing. Many Mechanical Breakdown Insurance policies will also cover operator error, which accounts for 35% of all equipment breakdowns. Not even a warranty or service maintenance contract will cover these types of losses.

If you take a closer look at the language of your Property Insurance Policy you will notice the following exclusion “we will not pay for loss of or damage to property, as described and limited in this section. In addition, we will not pay for any loss that is a consequence of loss or damage as described and limited in this section:

A.  Steam boilers, steam pipes, steam engines or steam turbines caused by or resulting from any condition or event inside such equipment.  But we will pay for loss of or damage to such equipment cause by or resulting from an explosion of gases or fuel within the furnace of any fired vessel or within the flues or passages through which the gases of combustion pass.

B.  Hot water boiler or other water heating equipment caused by or resulting from any condition or event inside such boilers or equipment, other than explosion.
Conclusion:

It appears obvious that virtually every commercial business has some type of Boiler and Machinery Insurance exposure.

Boiler and Machinery Insurance Coverage A.K.A. “Mechanical Breakdown Insurance Coverage” encompasses much more than just boilers and pressure vessels. Boiler and Machinery Insurance can include refrigeration equipment, air conditioning equipment, various types of piping, turbines, engines, pumps, compressors, blowers, gearing, shafting, electric motors, generators, transformers and assorted other types of mechanical and electrical equipment.

In fact, many policies are written for insureds who do not own or operate boilers or pressure vessels, but yet have mechanical and electrical exposures. Examples this would be a printing company, restaurant (refrigeration equipment) and publishers.  But it's not just the physical damage caused by the explosion or breakdown that's of concern. While repairs are being made, valuable time and profits are lost. Business Interruption coverage protects against this. Often Extra Expense coverage is required to keep the business in operation regardless of cost. Consequential Damage and Refrigeration Interruption insurance protect against spoilage as the result of a breakdown. Many times these business interruption, extra expense and spoilage losses can be much more extensive than the damage to the equipment itself.

Another little known fact of Boiler and Machinery Insurance:

Boiler and Machinery Insurance Coverage provides coverage with respect to property of others in the care, custody or control of the insured for which the insured may be liable. Property coverage forms typically exclude coverages for property held in the care custody and control of the insured. When there is a B&M loss, this excluded exposure is picked up under B&M protection.

One Final Boiler and Machinery Insurance "Did You Know?"

Many jurisdictions mandate that all building Boilers be inspected. This inspection costs money to hire an inspector and file the inspection with the jurisdiction. In addition to the coverage that B&M provides, it also provides a very important and valuable inspection service. Not only does this service satisfy most jurisdictional inspection requirements, but it also can benefit the insured by providing sound loss control recommendations that can help assure efficient operation and longer equipment life.  This inspection service easily satisfies the cost of the Boiler and Machinery Insurance Coverage.

Boiler and Machinery Insurance

Protect your Business in Three Easy Steps

A business is only as safe as the tools it uses. One of the best tools a business can use to protect its assets is commercial auto insurance.

Understanding insurance can be tricky. One of the first steps toward making an informed decision is to understand coverage and service options. Here are three easy steps to help figure out your commercial auto insurance needs:

1.  Choose an Insurance Agent with the Right Combination of Price and Service.

Insurance isn’t just about price. It’s about service, too. How are claims handled? How long will it take to get your vehicle back on the road? Can you get questions answered outside of business hours or online? Know the answers to these questions. Your time is money.

2.  Research your Insurance Policy Options.

Having the right coverage is important. A standard commercial auto policy generally includes coverage for:

• Injuries or damage that you cause;
• Your driver’s injuries;
• Injuries and damages caused by uninsured or underinsured drivers; and
• Damage to or theft of your vehicle(s).

When it comes to damage that you cause, you may be required to purchase certain limits based on who you work for. For instance, if you work for certain home builders, you may be required to carry $1 million in liability limits. Consider how much you are willing to pay out of pocket if your liability in an accident is more than your policy limits.

3.  Know How the Insurance Policy is Priced.

You can control your insurance costs. To get the best rates, run motor vehicle reports on potential drivers. If you let your insurance lapse, you’ll probably pay more for your next policy. Ask about discounts, including paid-in-full and renewal discounts.

Just like your customers rely on your professional skills, call a professional Independent Insurance Agent Like the ones at Castle Rock Agency, Inc. who will be in your corner, researching and recommending the best options.

For more information about commercial auto insurance, visit www.castlerockagency.com.

Business Auto Insurance