Boiler and Machinery Procedures

Florida Gulf Coast University
Department of Environmental Health and Safety
Risk Management and Insurance
Procedure No. 2.3
Issue Date: October 20, 2006, revised on 6-8-2011
Boiler and Machinery:
Obtain university boiler and machinery insurance coverage for university.
General overview:
The State Risk Management Trust Fund does not cover losses or damage caused by:
rupture, bursting, operation of pressure relief devices; or
rupture or bursting due to expansion or swelling of the contents of any building or structure caused by or
resulting from water; or
any loss, which would normally be covered only under a standard boiler and machinery policy, or
Mechanical breakdown; including rupture or bursting caused by centrifugal force.
Boiler and machinery insurance covers direct, accidental damage to objects within covered locations.
Inspections caused by accidents involving boiler, fired vessel, unfired vessel normally subject to vacuum or
internal pressure other than the weight of its contents, refrigerating or air conditioning vessel, or any metal
piping and its accessory equipment.
Definition of Terms:
Accident means a sudden and accidental breakdown of the object or part of the object. At the time
the breakdown occurs, it must present itself as physical damage to the object that requires repair or
replacement. This includes direct loss or damage caused by an explosion of an object unless
otherwise excluded by the policy.
Covered location is defined at any location on schedule with the insurance company.
Object means any boiler, fired vessel, unfired vessel normally subject to vacuum or internal
pressure other than the weight of its contents, refrigerating or air conditioning vessels, mechanical or
electrical machine or apparatus for the generation, transmission, or utilization of mechanical or
electrical power, and any apparatus used for research, medical, diagnostic, surgical, dental or
pathological use is considered an object as defined in this paragraph.
Environmental Health and Safety has the primary responsibility for reviewing and verifying the boiler and
machinery schedule provided to the university by the Department of Management Services. Every year or upon
request, the insurance company providing this insurance coverage will inspect university buildings. EHS will
update the Fire Insurance Trust Fund with the current list of buildings and their respective contents at actual
cash value during the current fiscal year or at the beginning of next fiscal year.
Space Utilization has the primary responsibility of providing a current building list identifying any added or
deleted buildings to EHS when a building is completed or removed from the space file.
Finance and Accounting has the primary responsibility of providing the current content value of each building
covered under the Fire Insurance Trust Fund.
The deductible for this coverage is 10% of the covered loss, with a minimum of $10,000.00.
The Department of Management Services calculates the premium based on the actual cash value of each state
insured building and their contents. When invoice for annual premium arrives, the University Budget Office
will pay it from the central insurance fund-org or any fund deemed appropriate.
Boiler and machinery policy available upon request, please contact Willie Baca for a copy of policy.
Willie Baca
Assistant Director, EHS – Risk Management and Insurance
239-590-1126 Office
239-590-1033 Fax