Engineering insurance refers to the insurance that provides economic safeguard to the risks faced by the ongoing:
- construction project,
- Installation project, and machines and equipment in project operation.
Product categories: Depending on the project, it can be divided into construction project all risks insurance and installation project all risks insurance; depending on the attribute of the object, it can be divided into project all risks insurance, and machinery breakdown insurance.
Cover provided is on an “all risks” basis relating to “unforeseen and sudden” physical loss or damage to the insured items. It is thus property insurance.
What is covered?
- Power plants failures
- Electrical machines faults
- Equipment’s
- General Machines
- Manufacturing units
- Boiler explosions and pressure plants explosions
- Electronic equipment’s fault
Exclusions / limitations
- Standard exclusions, such as war and associated risks, nuclear, etc.
- Consequential loss, arising because of the breakdown
- Policy deductible, which may be of fairly significant amount.
Contractors’ All Risks is designed to provide an all risks cover during the construction period for contract works against loss or damage to property and third party liability for accidental bodily injury or property damage in connection with the performance of the contract, other than by an excluded cause.
What is covered?
- Buildings :residential, offices, hotels, hospitals ranging from 15-40 stores
- Auditoriums , movies theaters, multipurpose halls
- roads
- culverts and bridges
- water supply schemes, sewage disposal, overhead tanks
- Railway lines lying.
Exclusions/ limitations
- Faulty design and losses only discovered on taking an inventory
This insurance also closely follows the basic format and wordings of contractor’s all risk with the latter however the work involves the actual construction (making) of buildings, etc. with erection all risks the basic components are normally not constructed on site, but are assembled and installed (e.g. bridge construction, powerful transmitters, large storage installations etc.)
What is covered?
- General risks
- Power generation/ distribution risks
Other large risks maybe rated as special risks in consultation with re-insurers.
