What do you call the insurance policy for major equipment malfunctions?

The insurance policy specifically designed to cover major equipment malfunctions is referred to as a boiler policy. This type of insurance provides coverage for the breakdown of mechanical equipment, which can include boilers, pressure vessels, and other significant machinery. When equipment malfunctions, the financial repercussions can be substantial, not only due to repair or replacement costs but also due to potential business interruptions.

A boiler policy typically covers the cost of repairs or replacements for machinery that suffers a breakdown, as well as associated expenses that might arise from the loss of productivity. This specialized coverage is crucial for businesses that rely heavily on specific machinery for their operations, as it mitigates the risk associated with unexpected equipment failures.

In contrast, equipment insurance is a broader term that could encompass various types of equipment but is not specifically labeled as a boiler policy. Property coverage generally pertains to real estate and physical assets rather than the operational machinery itself. Liability insurance, on the other hand, is designed to protect against claims resulting from injuries or damage caused to others, rather than covering equipment malfunctions directly.