Does boiler and machinery insurance require the covered property to be owned by the insured?

Boiler and machinery insurance typically requires that the covered equipment or property be owned by the insured. This type of insurance is designed to protect against breakdowns and related losses associated with boilers, machinery, and equipment owned and operated by the policyholder. The rationale behind this requirement is that the insured is responsible for maintaining, operating, and managing the equipment they own, making it logical for the coverage to be restricted to property that is directly tied to their operations and financial interests.

While there are instances where policies may allow coverage for equipment not owned by the insured (for example, through certain endorsements or specific arrangements), the general rule is that the standard coverage necessitates ownership to ensure that the insured can claim benefits and protections pertinent to their financial investment. Options that suggest varying ownership conditions or partial coverage introduce ambiguity that does not align with the conventional standards of boiler and machinery insurance policies.