*Effective August 1, 2025, the NC Department of Labor – Boiler Safety Bureau (Chapter 13 NCAC 13 .0213) has started to bill all third-party inspection agencies (including HSB) for the operating certificates on all boilers and pressure vessels that were inspected by them.
The State is requiring the inspection agencies to invoice their insured locations to recoup the operating permit fees paid to the State.
The State of NC insurance program has agreed to prepay HSB for these certificate operating permit fees in advance. It is imperative that all boiler and pressure vessel inspections be coordinated and scheduled using HSB. HSB will not reimburse any certificate permit fee paid to the NC Boiler Safety Bureau if the object was inspected by a State boiler inspector.
See letter for additional information.
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.
Inspections
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
Sublimits:
- 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
Deductibles
- 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.
For more information contact Latarsha Silver at 919-647-0065.