When the chips are down.

The kind of machinery used in business has altered enormously over the past century and so, says Simon Threadgold, have the policies designed to protect in the event of their breakdown.

Engineering insurance was invented in the nineteenth century, when
steam was used to power nearly all machinery. Unfortunately, steam boilers
had a tendency to explode. So insurers began to offer cover against boiler
explosion and the catastrophic damage which ensued.


The principal purpose of engineering insurance is still to provide
protection against machinery breakdown and resultant damage. Boilers are
still important, because any malfunction entails major consequences. But
today's critical