Engineering insurance is a type of insurance policy wherein a wide range of risks related to engineering are covered. It is a comprehensive insurance policy that offers complete protection against various risks related to resting, erection, and working of any plant, machinery, or equipment.
Since the engineering industry is about creating and designing, construction and building, so there are more chances of accidents and perils that are related to construction. If we put it more technically, an Engineering Insurance policy caters to different forms of uncertainties that are associated with on-site construction including plant and machinery usage.
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This is an ‘all-risk’ insurance policy that particularly includes:
The cover can be extended by including any of the below-mentioned add-ons. However, the add-ons must be up to the limit that a policyholder has selected. For including any of these add-ons, the policyholder must pay an additional premium.
Some of the exclusions of the Engineering Insurance policy are:
The sum insured of Engineering Insurance policy must not be less than completely erected property’s value inclusive of customs duty, freight, and cost of erection. In nutshell, the insurance must be for the price of the contract.
The types of Engineering Insurance Plans offered are as follows:
As the name of this policy says, Machinery Breakdown Policy offers coverage for losses of unexpected or sudden damage of various equipment, when they are in use. Generally, in a Machinery Breakdown Policy, both external and internal damages are covered. Some of the internal damages may include defects of lubrication, overheating, electrical damage, etc. If one owns refrigeration units or a factory, the Machine Breakdown policy can also prove an invaluable policy for protecting the assets.
This insurance plan is streamlined to provide coverage against unforeseen damages and loss of operational tools. Equipment used in construction and operational machinery is prone to wear and tear because of its exposure to extreme conditions of the environment. So, this plant and insurance policy is for those who operate or own machinery or engineering plant and want to secure them.
Most of the time, this policy provides coverage to the devices and systems that can attract low power and voltage. So, the electronic equipment like UPS, computer, stabilizer, and medical equipment such as x-ray machine, ultrasound machine, etc are covered. Under this policy, the insurance provider is responsible for the cost of repairs and replacement required to reinstate the former state of the devices and equipment.
The erection all risk covered under this plan deals with the erection of plant and machinery structures. Additionally, it also includes activities of installation, machinery testing, and commissioning. The basic concept of equipment that we are talking about is engineering-inclined. For example, equipment such as bulldozers, excavators, trenchers, graders, loaders, pavers, etc. that depicts the on-site machinery used for construction.
As the name of this Engineering Insurance Policy, it provides coverage for the contractors and offers financial protection against loss or damage incurred during the construction of projects. Same as other forms of engineering insurance that are mentioned earlier, the Contractors All Risk Insurance provides coverage against damage and loss to equipment and plants. This insurance plan revolves around the company's reference to on-site construction-related uncertainties. It is essential for civil engineering projects such as flyovers, buildings, airports, etc. Some Contractor’s Insurance as well provides coverage against fire accidents that may incur during ongoing construction work. However, this is majorly covered under a separate Fire Insurance policy.
Under this Engineering Insurance Policy, coverage for higher financial losses or costs incurred because of delays in a construction or infrastructure project is provided.
The boiler and pressure plant insurance plan provides coverage for the replacement and repair of equipment. This plan also has extended boiler insurance that as well covers the damages to third-party property or bodily injury that is caused due to collapse or explosion.
The coverage of this policy starts as soon as the first consignment arrives at the site, during erection, and normal storage, testing, commissioning till the plant is commissioned successfully, and handed over.
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