Boilers
Preventive maintenance is crucial for the longevity and efficiency of any equipment, even if it is new. An insured recently learned this lesson after the loss of a newly installed boiler, which also led to a partial loss of production and income. Learn more about this loss below and how it could have been prevented.
A food processing facility purchased a new gas-fired water-tube boiler; however, just six months after installation, the boiler overfired and required replacement. The insured filed a claim with the manufacturer, which was denied as the damage was not a result of a manufacturing defect or installation related issues. Upon investigation, it was discovered the cause of loss was operator error due to a lack of proper maintenance, including scheduled blowdowns of the unit. In addition, partial loss of income and production played a part in this claim as the boiler replacement took 12 weeks to complete.
While the cost of physical damage to the boiler was substantial, a majority of this claim’s total payment was related to the insured’s loss of income. This emphasizes the impact that an indirect loss can have on a business and demonstrates the importance of proper maintenance of equipment to prevent loss. Other factors a loss can have on a business include operational inefficiencies, delayed orders and potentially dissatisfied customers.
Regardless of equipment age, maintenance is a critical practice to help prolong the lifespan of equipment and ensure it is operating at peak efficiency. Prioritizing loss prevention can help business operations run smoothly and support long-term success of a business.
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