Monday, March 23, 2015

Breaking Down Boiler and Machinery Coverage, Part 2

Originally published by Shaun Marker.


Last week I began a series of posts related to the complex area within insurance for boiler and machinery coverage. This post will continue the discussion about interesting areas of coverage within boiler and machinery policies. What does the term “hostile fire” mean in the context of boiler and machinery policies? A fire loss exclusion in a boiler and machinery policy could be construed to be referring only to a “hostile fire” since the boiler could not be operated or used without the “friendly fire” under it.1

If the boiler and machinery items insured have “friendly fire” within the system as part of its operation, then the “hostile fire” discussion within this case refers to something occurring, in my understanding, outside of the normal operation of the system. In the Nitrin case, the boiler and machinery insurance carrier was pointing the finger at the property fire insurance carrier for responsibility to cover the claimed…


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Curated by Texas Bar Today. Follow us on Twitter @texasbartoday.






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