Equipment Breakdown

Scope/Purpose

Cast iron boilers are found throughout Canada providing heat or hot water supplies to many users. We find these boilers in apartment buildings, educational institutions, health care institutions, mercantile buildings, as well as industrial occupancies. Because cast iron is very brittle, it is highly susceptible to cracking. Internal corrosion and scale build-up impedes operational efficiency and will lead to overheating, poor circulation and eventual metal failure. Internal inspection of metal surfaces cannot be performed on these boilers, therefore proper maintenance, inspection and testing must be carried out before, during and after the heating seasons. There are three classes of cast iron sectional boilers:

• Class 1 – Low-pressure steam, less than 15 psi
• Class H – Hot water heating boiler
• Class S – Hot water supply boiler, less than 160 psi and 2500F

Equipment Breakdown – an integral part of property/casualty insurance

Equipment Breakdown insurance is an integral part of property/casualty insurance. The property exposed to physical loss under an Equipment Breakdown insurance policy can also be exposed to loss under the standard fire policy. However, the perils covered by the two policies differ. Business interruption coverage is similar. The Equipment Breakdown peril is synthetic in that it is "man made". It is identified as an internal operational hazard related to boilers, pressure vessels, mechanical or electrical apparatus and machinery. The property insurance policy, however, deals with perils involving natural or external circumstances such as fire, explosion, hail, windstorm, earthquake, etc.

Why place your Equipment Breakdown Insurance with Zurich Canada?

Zurich provides a combined all-risk property/Equipment Breakdown policy, which includes mechanical and electrical breakdown coverage for all machinery. This assures seamless coverage, which our customers should have to minimize business risk. Mono-line Equipment Breakdown coverage is still available as an option through our integrated business solutions and International and industrial strategic business units. This product is intended to meet the needs of our larger customers. Zurich's premium rating reflects the true risk undertaken when we provide you with integrated solutions to your insurance needs. Our goal is to establish a long-term relationship with you, our business partner, helping you better manage your business risk.

Combustion safety control systems for boilers and ovens

Heating equipment can be found in all businesses and industries. Boilers, heaters, ovens, kilns or process furnaces can simply provide heat to a building or they can be a key element in the manufacturing process. Because most heating systems operate automatically, you need to rely on control and safety devices to ensure a safe start-up and shut-down procedure. According to one leading property insurance company, over the past 15 years, more than 150 combustion explosions have been reported. These losses represented $259 million, and in most cases, the underlying cause was failed or missing safety devices.

• Does your facility rely on a fuel fired appliance (boiler, oven, etc.) for production processes or building services?
• Are you aware that jurisdictional inspectors may not normally complete a comprehensive review of combustion controls nor do they commonly leak-test safety shut-off valves?
• Are the safety shut-off valves leak-tested annually?

What is a boiler logbook?

An Operating Engineers Logbook or Boiler Logbook is a record of the operating conditions of a Equipment Breakdown and/or Pressure Vessel as defined by Ontario Regulation 220/01 of the Technical Standards and Safety Act, 2000 (www.tssa.org):

àBoilers and Pressure Vessels àSafety Legislation & Regulatory Information àTSSA Act & Safety Regulations à1. Boilers and Pressure Vessel Regulation (O.Reg. # 220/01).

Note: All other files are to be read in conjunction with this regulation as they apply.