Boiler Explosion Insurance
THE POLICY
This type of insurance covers all insured items against explosion or collapse and depending on the insured item, against flue gas explosion, overheating, cracking or distortion, cracking or fracturing or joint failure.
WHO NEEDS THIS COVER?
Church operated organisations and businesses, particularly hospitals and nursing homes, schools and colleges, offices and others that have steam boilers, steam generators, hot water boilers, pressure vessel or pipe systems.
DEDUCTIBLE/EXCESS
Normally no deductible applies.
LIMITS OF LIABILITY
The limit of liability represents the total sum insured for all insured items and the sums insured are based on the installed current new replacement values of items.
FIRE SERVICE LEVIES and STAMP DUTY
As cover is limited to explosion etc. (other perils can be insured under the Composite Risks Policy), fire services levies do not apply. Where applicable, stamp duty is added to the premium.
FEATURES and BENEFITS
Newly installed items are automatically covered from the time of completion or successful commissioning of the item provided:
- Our liability for all new items does not exceed 20% of the total sum insured, and
- The insured tells us about these items at the end of the period of insurance.
Sums insured are indexed to keep pace with inflation.
IMPORTANT POINTS
The policy is subject to a 90% average condition which means that if the sums insured are less the 90% of the replacement value then the insured will be liable to contribute by such proportion as the sum insured bears to 90% of the amounts required to be insured. Every object and item within these items will be subject separately to this condition.
Legal liability is covered under our standard Legal Liability policy.
The policy does not cover:
- Preventative maintenance work.
- Alterations, additions, improvements or overhauls.
- Replacement or restoration following gradual deterioration including rust, corrosion, erosion, oxidation, scale formation.
- Slowly developing deformation or distortion of any part of the plant.
- Loss or damage caused by or arising out of chemical explosion other than the explosion of flue gas in boilers or the ignition of any liquid, fluid or gas which is escaping from any pressure vessel.
- Damage due to any hydraulic test of the item.
- Consequential loss of any kind.
It is important to note that boilers and pressure vessels may be insured under a Machinery Insurance policy in place of a Boiler Explosion policy. The Machinery Insurance policy covers accidental damage and mechanical/electrical breakdown and is broader in cover than the Boiler Explosion cover.
TAKING OUT A POLICY
Catholic Church Insurances Limited will assist in obtaining information necessary for providing a quotation and issuing a policy.
The Insured should minimise the extent of damage, preserve the effected parts for later inspection and immediately notify us so inspection and repairs can be arranged.
Please note: this information sheet is not intended to replace the policy wording. It is designed for information purposes only and should be read in conjunction with the policy wording. For further information or a full copy of the policy wording please contact Catholic Church Insurances Limited on 1300 655 001.
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