What is the minimum limit stated in the B and M policy?

In a Boiler and Machinery (B and M) insurance policy, the minimum limit is typically set to provide adequate coverage for common risks associated with equipment and mechanical failures. The minimum limit of $500,000 is designed to protect businesses from significant financial losses that can arise from equipment malfunctions, which can lead to property damage and business interruption.

This amount reflects standard industry practices and acknowledges the potential costs associated with repairing or replacing machinery, as well as addressing liability issues that may arise if equipment failure causes injuries or damages to third parties. Thus, the choice of $500,000 is aligned with ensuring that policyholders maintain sufficient coverage to mitigate their financial exposure in case of a covered loss.