Provided by Hartford Steam Boiler
Date: July 2018
MCIT’s property coverage includes coverage for losses related to equipment breakdown. Often referred to as boiler and machinery coverage, MCIT has partnered with Hartford Steam Boiler Inspection and Insurance Company (HSB) to provide this protection for members. As part of the arrangement, HSB conducts inspections of boilers and pressure vessels as required by the Minnesota Department of Labor and Industry. Typically boilers are inspected each year while pressure vessels, such as air tanks, are examined every other year.
Inspections performed by HSB professionals within the state guidelines are considered part of coverage so members never see a bill for this service. Inspection of a boiler or pressure vessel, outside of the required schedule, is the responsibility of the owner of the property. Following the inspection, the HSB representative completes the required state forms and files them with the appropriate jurisdiction(s).
When conditions are discovered that could result in a serious loss or a jurisdictional “code” violation, a Loss Prevention Report is prepared by HSB and provided to the member and MCIT. Recommendations are categorized as code, critical, priority and advisory.
- Code: A condition that violates jurisdictional boiler and/or pressure vessel requirements and that must be corrected prior to the issuance of an “operating certificate” by the jurisdiction.
- Critical: A condition that could lead to a significant loss if not corrected immediately.
- Priority: A condition that could lead to a significant loss, but the likelihood of failure is not imminent. This recommendation is intended to allow members to schedule corrective action in the near future versus immediately.
- Advisory: A condition that has a low probability of loss, minimal impact in the event of failure, or a condition that would not cause a loss but if corrected would improve the operating efficiency or useful life of the equipment.
MCIT regularly provides the location and contact information of members for HSB to make arrangements for the next inspection. When calling to schedule an appointment, the HSB representative will identify him- or herself, explain his or her relationship to MCIT and outline the work he or she will perform during the inspection. No phone call to HSB is necessary unless a member has a boiler question or thinks an inspection is needed. Members can contact HSB’s toll-free Inspection Hotline at 1.800.333.4677.
HSB also works with MCIT to provide other risk management services to assist with the protection of members’ equipment and property. Periodically, HSB will alert MCIT to hazards observed during a visit, which are then communicated to the member. HSB can provide claim, loss prevention, operation and maintenance training on boilers and similar equipment on a fee-for-service basis. Infrared loss prevention surveys that identify electrical “hot spots” is another fee-based service available to MCIT members.
Additional technical, loss control and risk management information and resources are available on HSB’s website.
For more information on inspection services for boilers and pressure vessels or safety consultative services, contact MCIT at 651-209-6400.
More to Equipment Breakdown Coverage
Equipment breakdown coverage is more comprehensive than members might think. Hartford Steam Boiler offers the brochure “Common Equipment Failures and Causes” that details specific claim examples and highlight this coverage. Members can call their risk management consultant toll-free at 1.866.547.6516 to request a copy or download a PDF at MunichRe.com.