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Oldie But A Goody

Though it may sound antiquated, boiler and machinery insurance is a modern necessity.

This story appears in the September 2000 issue of Entrepreneur. Subscribe »

You may or may not have a boiler, but chances are you need boiler and machinery (B&M) insurance. Why? Because your business property insurance covers a wide range of perils, such as fire, flood and accident, but it doesn't pay for equipment failure and any resulting losses.

Equipment and mechanical breakdowns have always been excluded by commercial property policies since back in the first half of the 20th century when steam boiler explosions were likely, explains Madelyn Flannagan of the Independent Insurance Agents of America. But after eliminating these risks from standard property policies, Flannagan says, the industry created a separate product to address them.

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