CMFAS CGI Engineering & Construction Insurance question: pressure vessel insurance relate to the fire policy and to machinery breakdown cover

CMFAS CGIEngineering & Construction Insurance

How does boiler & pressure vessel insurance relate to the fire policy and to machinery breakdown cover?

A It replaces both the fire policy and the machinery breakdown policy for the whole industrial plant
B It is distinct from fire and from mechanical/electrical breakdown, though often arranged together
C It is a fire extension covering only fire damage to pressure vessels on the premises
D It is identical to machinery breakdown cover, sold under a different name for vessels

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Answer: B. It is distinct from fire and from mechanical/electrical breakdown, though often arranged together

The pressure-explosion peril is distinct from fire (covered by the fire/property policy) and from ordinary mechanical/electrical breakdown (covered by machinery breakdown), though these covers are frequently arranged together for an industrial plant.

Common mistake

Treating boiler & pressure vessel cover as a duplicate of fire or machinery breakdown cover.

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Answer: B. It is distinct from fire and from mechanical/electrical breakdown, though often arranged together

Common mistake

Treating boiler & pressure vessel cover as a duplicate of fire or machinery breakdown cover.

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CMFAS CGI Engineering & Construction Insurance question: pressure vessel insurance relate to the fire policy and to machinery breakdown cover

Answer: B. It is distinct from fire and from mechanical/electrical breakdown, though often arranged together

Common mistake

Related CMFAS CGI questions

CMFAS CGI Engineering & Construction Insurance question: pressure vessel insurance relate to the fire policy and to machinery breakdown cover

Answer: B. It is distinct from fire and from mechanical/electrical breakdown, though often arranged together

Common mistake

Related CMFAS CGI questions