Boiler and machinery insurance (usually referred to as “breakdown insurance”) may cover loss resulting from sudden and accidental breakdown of objects such as boilers, air conditioning and refrigerating systems, pumps, compressors, turbines, engines, wheels, gears, electrical distribution equipment and transformers.

State’s boiler and machinery insurance covers only the following equipment*:

  • Boilers
  • Fired Vessels
  • Un-fired Vessels which require jurisdictional inspections
  • Refrigerating systems having vessels which require jurisdictional inspections

*Coverage is available for the other equipment described above if the Agency elects to purchase.

The property insurance provided by the State Property Fire Insurance Fund may cover losses to the above equipment caused by fire, wind, or one of the covered perils in the Fund’s policies. However, the Fund’s policies, as with other “commercial property” insurance policies, contain exclusions for losses caused by steam boiler explosions and mechanical breakdown. The boiler and machinery insurance is intended to plug these gaps, covering physical damage to the insured objects and other property that results from a covered accident.


The Hartford Steam Boiler Inspection and Insurance Company provides the jurisdictional inspections for the State’s boiler and machinery equipment.

Coverage Limits

Equipment Breakdown Limit - $50,000,000


  • Off Premises Property Damage - $500,000
  • Extra Expense - $500,000
  • Data Restoration - $500,000
  • Demolition - $500,000
  • Ordinance or Law - $500,000
  • Expediting Expense - $500,000
  • Hazardous Substances - $500,000
  • Newly Acquired Locations - $1,000,000


  • Combined - $5,000, except
  • Water Tube Boilers >40,000 pph - $25,000
  • Water Tube Boilers >200,000 pph - $100,000

HSB IoT Sensor Program

The NC Department of Insurance and Hartford Steam Boiler (HSB) are collaborating to offer a sensor monitoring program that may help protect your location.

The service involves placing sensors in key locations and monitoring them 24/7. When the sensors detect an adverse condition, an alert is sent to your attention to take action to help protect your buildings and equipment from damage.