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Phil runs a locomotive repair business, which is insured under a commercial property policy. One night, some blasting powder is accidentally ignited and blows a crowbar through one of the engines. No one is hurt, but the locomotive is severely damaged. Which coverage option may help cover the cost of repairing the engine from this unfortunate event?

A. Business Interruption Insurance
B. Liability Insurance
C. Boiler and Machinery Insurance
D. Workers' Compensation Insurance

User Rondel
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1 Answer

3 votes

Final answer:

Boiler and Machinery Insurance is the coverage option that may help cover the cost of repairing the engine from this unfortunate event.

Step-by-step explanation:

The coverage option that may help cover the cost of repairing the engine from this unfortunate event is Boiler and Machinery Insurance. This type of insurance is specifically designed to cover machinery breakdowns and other related damages. It typically includes coverage for accidental damage, such as explosions, as well as the costs of repairing or replacing damaged equipment.

Boiler and Machinery Insurance, also known as Equipment Breakdown Insurance, is designed to cover the cost of repairing or replacing damaged machinery and equipment. It is particularly relevant in cases of accidents causing physical damage to equipment essential for a business operation, as it would with a locomotive repair business.

By contrast, Business Interruption Insurance covers loss of income and additional expenses when a business is unable to operate due to covered property damage, Liability Insurance protects against claims resulting from injuries and damage to other people or property, and Workers' Compensation Insurance provides benefits to employees for work-related injuries or illnesses.

Therefore the correct option is C. Boiler and Machinery Insurance.

User Amit Thaper
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