I. Purpose

The purpose of this paper is to explain the Boiler and Machinery Policy of the University of Wisconsin System and the procedures that institution risk managers should follow to receive the benefits of this coverage.

II. Background

System Risk Management (SRM) obtains commercial insurance through Hartford Steam Boiler. Annual premiums are charged to SRM and allocated to the institutions based on institution’s property values and the previous three years of loss experience. These premiums will continue to be competitive as long as there is proper maintenance to avoid unnecessary down time and the potential of injury to staff and or the public.

III. Policy Details

Carrier: Hartford Steam Boiler
Policy Date: November 1 – November 1 Renews Annually
Policy Limits: $50,000,000

$100,000 Direct Coverages; 24 hours Indirect Coverages EXCEPT: Turbine Generator Units: 30 days
24 Hrs on Business Interruption

Perishable Goods: 10% of loss, $5,000 minimum
EXCEPT: $25,000/HP, $10,000 min on all chillers
EXCEPT: $150,000 for the 9.8 MW steam turbine/generator unit

This policy will pay for direct damage to property owned by the institution or property in the care, custody, and control of the institution for which we are legally liable. A covered cause of loss is sudden and accidental breakdown of any refrigeration vessel, refrigerating compressor and its driving electric motor, any turbine, and any generator.

The policy will pay reasonable expediting expenses, extensions for temporary repair, newly acquired locations, defense of third party claims, and supplementary payments.

EXCLUSIONS: Covered property does not include any research, diagnostic, experimental, prototype or testing equipment further, it does not include any part of a nuclear reactor or nuclear research or testing facility.

Some exclusions include Ordinance or Law, Explosion of a non-covered item, Fire, Water, Lightning, Flood, Testing, Earth Movement, Lack of power, Other indirect result of accident to an object, Deterioration, Corrosion, Wear & Tear, and Breakdown of peripheral instruments.

TO REPORT A LOSS: Contact Hartford Steam at 888/472-5677 fax 888/329-5677

For more detail on policy coverage please contact SRM.

IV. Procedures

A. Loss Reporting

In the event of a loss, immediately notify the SRM office so Hartford Steam Boiler may be contacted. Initial notice must be given by phone or by facsimile within 12 hours of the loss. Give immediate notice to SRM at work or home if you interpret the loss as serious in nature. Initial notice should include the following details:

• identification of machinery, including serial number, make, and model of the equipment;
• description of the loss, cause, and subsequent damages sustained;
• dollar estimate of loss amount;
• name and phone number of the institution contact person for Hartford.

Within five days of the loss, written notification should be sent to SRM providing the above information plus any other details of the loss, status of the loss inspection and settlement procedures.

Damaged machinery or lines and other evidence of cause of loss must not be removed prior to the arrival of the Hartford loss control contact. Efforts should be made, however, to minimize the amount of damages, including related down time.

B. New Boiler Location Reporting

Any time an institution risk manager becomes aware of a newly installed boiler or of a boiler that was not previously reported, this information must be conferred to SRM so that we may add the location to the boiler location list. Included in the boiler description should be:

• the serial number, model and make of the item;
• the location of item;
• capacity of boiler.


This insurance document is furnished to you as a matter of information for your convenience. It only summarizes the listed policy(ies) and is not intended to reflect all the terms and conditions or exclusions of such policy(ies). Moreover, the information contained in this document reflects coverage as of the effective date(s) of the policy(ies) and does not include subsequent changes. This document is not an insurance policy and does not amend, alter or extend the coverage afforded by the listed policy(ies). The insurance afforded by the listed policy(ies) is subject to all the terms, exclusions and conditions of such policy(ies).