Engineering insurance covers you against misfortunes such as machinery breakdown, business interruption, deterioration of stock, engineering transit, dismantling and erection and accidental damage to electronic equipment, mobile plant and construction work. 

All engineering material damage policies are policies of indemnity. Naturally there are definitions on these policies, which are a little out of the ordinary dictated by the type of cover underwritten. 

Engineering insurance policies provide “All Risk” type covers.

This means that almost any sudden & unforeseen physical loss or damage occurring during the period of insurance to the property insured is indemnifiable (payable by insurers.) In essence, every hazard is covered which is not specifically excluded.

Who needs Engineering Insurance? 

Financiers, Developers, Owners, Principals, Employers, Purchasers, Main Contractors, Sub-Contractors, Supplier-Installers who are involved in: 

• The construction or erection of all types of civil, electrical, mechanical engineering projects.
• The managing and on-going operation of these types of industrial developments/projects.
• The use/operating or leasing (hiring-out) of Contractor�s Plant and Machinery.
• Companies operating in the fields of civil, electronic, mechanical or structural engineering.

Unfortunately accidents can happen & there can be sudden & unforeseen loss or damages to the Completed Works or Works/Projects under construction. Example: Brought about by a fire, theft, storm, hail, collapse, mechanical and/or electrical breakdown or derangement etc. 

There could be possibilities of resultant loss of gross profit, loss of rent, loss of revenue, and/or increase cost of working etc. 

Consequential losses stemming from engineering damage in the form of loss of profits, deterioration of stock, temporary hiring fees and increased cost of working. 

Anyone who is involved in construction, maintenance, installation, or repair services should take out a Contractors All Risks policy.

We live in a country rife with crime, changing weather conditions. Add to this the growing tendency to be held accountable for damages you cause to third parties, and the need for contractors all risks insurance becomes obvious. Insurance costs a fraction of the price of replacing your projects if these are damaged, or your materials if these are stolen, or redoing the work or reimbursing the losses you caused to your client or third parties. Taking out contractors all risks insurance is a prudent way to ensure that your business will survive through all the trials and tribulations it will face.

Other insurance to be considered along with Contract Works Insurance – Most principals insist on liability cover being in place on all projects. Contract Works Insurance will automatically include cover for Public Liability. Cover for Surrounding Property (take note that not all policies automatically include this) can also be included.

Contractors Insurance against accidental loss of or damage to plant and machinery during the operations insured against. This is a contingency policy and can include dismantling, movement, loading, transit, offloading, storage, repositioning, re-erection, public liability and maintenance/guarantee.

Cover can be limited to any or all of the aforementioned and can be adopted to suit most applications such as exhibition or demonstration, etc. Where new machinery is involved the cover can include testing.

This policy covers you for the sudden accidental & unforeseen physical loss of or damage to machinery & the plant. This can arise from mechanical/electrical breakdown, either whilst in operation, at rest, or during resting or re-erection, at your premises.

Industries using: Motors, generators, transformers, switchboards, switch gear, cabling, boilers, turbines, engines, compressors, refrigeration plant, fans, blowers, lifts, cranes, presses, printing machinery, machines tolls, process plants should take out a Machinery Breakdown policy.

The risks to a business of operating plant and machinery extends beyond simply the cost of repair or replacement.  Under the Machinery Business Interruption policy financial losses resulting from breakdown or accidental damage can be insured.

The policy is extremely flexible.  Cover is for loss of profit when the business is interrupted or interfered with as a result of breakdown or damage to plant and machinery.  The policy can provide for loss of Gross Profit or Revenue, whichever is more appropriate during the agreed indemnity period.  Cover can be provided on all plant and machinery or just one or two key items.

Anyone who owns heavy mobile equipment & machinery should have Plant All Risks Insurance. This, at the very least, insures you against damages that this equipment could cause to third party people or property.

With the current construction boom, this equipment is in high demand.  Theft of the same is therefore rife.  Furthermore, given the nature of work this equipment is used for, fire; water and impact damage can often occur.  Equipment may be damaged whilst in transit and further concern could be the damage that this equipment can potentially cause to third party people or property.  This equipment is incredibly expensive; insurance costs a fraction of repairing or replacing if the equipment is damaged.