Question

Covered losses in a Boiler and Machinery Policy include:

1) Explosion, overheating, burning and cracking
2) Leaking at the valve, fitting or shaft
3) The functioning of a safety device
4) Depletion, deterioration and wear and tear

Answer 1

Covered losses in a Boiler and Machinery Policy generally include events like explosions and leaks that cause sudden physical damage. However, normal depletion, deterioration, and wear and tear are not covered as they are part of the expected operation cycle.

Step-by-step explanation:

Covered losses in a Boiler and Machinery Policy typically include unexpected and sudden physical damage to equipment. The scenarios where a policy pays out may consist of situations such as: 1) Explosion, overheating, burning and cracking; these events are sudden and accidental, leading to physical damage to the machinery. 2) Leaking at the valve, fitting or shaft can also be considered under this policy if it leads to damage of the boiler or machinery. Whereas, 3) The functioning of a safety device would typically be a feature of equipment operation and wouldn't be a loss, instead intended to prevent loss.

The items not generally covered are 4) Depletion, deterioration and wear and tear, as these are considered to be part of the normal operation cycle and are expected to occur over time, thus they are not sudden and accidental.