Risk Management & Tort Defense

Protecting Montana's Vital Assets & Resources

Boilers & Machinery Insurance Summary

A summary of boiler & machinery coverage, exclusions, and policy information is provided below. Coverage may vary by object or agency. This summary does not alter or amend coverage provided in statute or under the state property/casualty insurance program. Specific exclusions, limitations, or conditions may apply. For a comprehensive review of coverage and program requirements, please click here for PDF (217kb) or here for Word (42kb). For additional information, please contact the Risk Management & Tort Defense Division at (406)444-2421.


  1. Insurer(s): Various Lloyd's of London and domestic insurance carriers.
  2. Broker: Alliant Insurance Services.
  3. Term of Coverage: 7/1 to 6/30 each fiscal year.
  4. Coverage Territory: The policy applies to insured property within the United States. There is a $1,000,000 limit for properties outside of the United States. For coverage outside these territories please contact the Risk Management and Tort Defense Division.
  5. Cause of Loss Covered: Sudden and accidental breakdown of an insured object or part of the object, with physical damage that requires repair or replacement.
  6. Property Covered: Insured objects are:
    1. Boilers, fired vessels, unfired vessels normally subject to vacuum or internal pressure other than weight of contents, refrigerating and air conditioning vessels and any metal piping and its accessory equipment.
    2. Mechanical or electrical machine or apparatus used for the generation, transmission or utilization of mechanical or electric power (i.e. air conditioners, furnaces, and production machinery).
  7. Perils Excluded: Exclusions are as indicated below, but are not all included.
    1. Nuclear hazard.
    2. War and Military action. 
    3. Explosion, except from an explosion from a state object. 
    4. Earth movement. 
    5. Testing of equipment. 
    6. Lack of power. 
    7. Loss covered by other insurance. 
    8. Due diligence for loss for failure to use reasonable means to resume business.
  8. Valuation of Property: At the time of accident the cost to repair or replace the property with like size, kind and quality of equipment. Business income lost for the time to repair or replace equipment and resume operations.
  9. Limits:
    1. $100,000,000 Breakdown, Extra Expense, etc.
    2. $10,000,000 Service Interruption.
    3. $10,000,000 Consequential Damage.
    4. $10,000,000 Electronic Data Processing Media.
    5. $10,000,000 Ammonia Contamination.
    6. $10,000,000 Hazardous Substances.
    7. $10,000,000 Perishable Goods.
  10. Deductibles:
    1. $25,000 per incident.
    2. $1,000 per agency/university.