The ACORD 155 form is the Boiler and Machinery Section, used in commercial insurance to capture information about a business’s boiler, machinery, and equipment exposures. This type of coverage, also known as Equipment Breakdown Insurance, protects against losses resulting from mechanical or electrical breakdowns of critical machinery. The form allows underwriters to evaluate the types of machinery and equipment a business relies on, assess associated risks, and determine appropriate coverage.

Purpose of ACORD 155

• Risk Assessment: The form gathers essential details about machinery and equipment to help insurers evaluate the risks associated with insuring these items.
• Coverage Specification: It allows the business to outline specific coverage needs, including equipment breakdown, repair, and replacement costs.
• Loss Control: The form may include details about maintenance and safety protocols, which insurers use to assess preventive measures and set premiums accordingly.
• Financial Protection: The form supports the business in securing financial protection against costly repairs or replacements due to mechanical breakdowns, which can be crucial for operations.

Example of ACORD 155 in Practice

Imagine a manufacturing company that relies on several boilers, compressors, and industrial equipment to maintain production.

1. Policyholder Information:

• Insured Name: ABC Manufacturing Corp.
• Location: 123 Industrial Park, Cityville

2. Equipment Information:

• Boiler #1: Model B100, Serial No. 12345, located in Building A
• Compressor #2: Model C200, Serial No. 67890, used for assembly line operations
• Generator: Model G300, Serial No. 11223, provides backup power for critical systems

3. Coverage Limits:

• Limit for Boiler Coverage: $500,000 per occurrence
• Compressor Coverage: $300,000 per occurrence
• Business Income Protection: Up to $100,000 if production is halted due to equipment failure

4. Maintenance Details:

• Routine maintenance schedule: Monthly inspections for boilers and compressors.
• Safety Protocols: Pressure relief valves and safety shutoffs are tested quarterly.

5. Premium Adjustments Based on Safety Measures: Because ABC Manufacturing has a rigorous maintenance schedule and safety protocols, the insurer may apply premium discounts or favorable rates.

This information helps insurers assess the condition and usage of the equipment, calculate premiums, and determine appropriate coverage limits. In the event of a breakdown, the policy would cover repair or replacement costs and possibly business income losses if production is impacted.