ENGINEERING INSURANCE


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. Nowadays it's no longer only a question of, "What is engineering insurance" The more relevant questions being asked are, "What type of insurance cover is ideal in specific circumstances or for a specific project" And, "Which service provider has the knowledge and expertise to ensure sound, quality underwriting"

Times have changed, businesses are evolving more rapidly and industries are becoming more responsive to market dynamics including global forces, risks and opportunities. From a risk mitigation point of view, it is important to note that there are various risk and liability concerns that are specific to it.

In a nutshell, engineering insurance refers to essential cover which affords economic safeguard against risks encountered during contract implementation and execution. This includes different types of risk exposure in the course of construction project rollouts, installation projects as well as that affecting machines and equipment.
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ENGINEERING INSURANCE

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. Nowadays it's no longer only a question of, "What is engineering insurance?” The more relevant questions being asked are, "What type of insurance cover is ideal in specific circumstances or for a specific project" And, "Which service provider has the knowledge and expertise to ensure sound, quality underwriting"

Times have changed, businesses are evolving more rapidly and industries are becoming more responsive to market dynamics including global forces, risks and opportunities. From a risk mitigation point of view, it is important to note that there are various risk and liability concerns that are specific to it.

In a nutshell, engineering insurance refers to essential cover which affords economic safeguard against risks encountered during contract implementation and execution. This includes different types of risk exposure in the course of construction project rollouts, installation projects as well as that affecting machines and equipment.


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    ERECTION ALL RISKS POLICY

    Our Erection All Risks policy, as the name suggests, cover you from ‘All Risks,’ which may be sudden and unforeseen losses or damages to insured property. This policy also provides protection to the machinery while in use, being installed or in storage, from accidents and natural hazards like hurricanes. The coverage begins from the very time that the consignment of machinery is first unloaded at the project site and lasts until the erection of the project is completed and handed over to the owner or purchaser.

    You can extend the policy cover by paying extra premium from the following risks:

  • Escalation
  • Maintenance
  • Clearance and removal of debris
  • Damage to the owner’s surrounding property
  • Third party liability
  • Additional customs duty
  • Express freight
  • Holiday and overtime rates and wages
  • Earthquake
  • Terrorism


    • INCLUSIONS

    Insurance is on an 'all-risks' basis and in particular includes -
  • Fire, lightning, explosion, aircraft damage
  • Fire, lightning, explosion, aircraft damage
  • Riot, strike, malicious acts
  • Flood, inundation, storm, cyclone and allied perils
  • Landslide, subsidence and rockslide
  • Burglary and theft
  • Faults in erection
  • Human errors, negligence
  • Short circuiting, arcing, excess voltage
  • Electrical and mechanical breakdown
  • Collapse, damage due to foreign objects, impact damages
  • Any other sudden, unforeseen, accidental damages not explicitly excluded


    • EXCLUSIONS

    Some of the exclusions under the policy are-
  • War Invasion
  • Nuclear Reaction Nuclear Radiation or Radioactive Contamination
  • Insured's Contribution - Deductible
  • Willful Act or Willful Negligence of the Insured
  • Cessation of Work
  • Defective Material or Bad workmanship
  • Wear Tear Corrosion Oxidation Deterioration
  • Breakage of Glass
  • Disappearance or Shortage (Inventory Losses)
  • Design Defects
  • Loss of files, drawings, cash, cheques etc,.
  • Consequential Loss
  • Terrorism



    • CONTRACTOR’S PLANT AND MACHINERY INSURANCE

    Contractor's Plant and Machinery is an exclusive all risks policy covering the plant and machinery used by the contractors at the site for various projects. Contractors Plant and Machinery Insurance covers the property whether they are at work or at rest, or being dismantled for the purpose of cleaning or overhauling, or in the course of operations or when being shifted within the premises or during subsequent re-erection, but in any case only after successful commissioning.


    Following machineries/equipment can be covered under Contractors Plant & Machinery insurance -

  • Earthmoving equipment: Bulldozer, grader, scraper, excavator, loader, dumper, etc
  • Concrete mixer, concrete pumps
  • Lifting equipment and drilling equipment Road surfacing equipment:
  • Batching plant for production of concrete of asphalt
  • Concrete or bitumen paving machines
  • Bitumen tank sprayers
  • Rollers


    • Cover can be extended to includes up to a limit chosen by you on the following on payment of additional premium-

  • Owner's surrounding property
  • Clearance and removal of debris
  • Additional customs duty
  • Express freight
  • Air freight
  • Third party liability
  • Floater cover
  • Dismantling
  • Earthquake


    • INCLUSIONS

  • Fire, lightning, explosion, aircraft damage
  • Riot, strike, malicious act
  • Flood, inundation, storm, cyclone and allied perils
  • Landslide, subsidence and rockslide
  • Burglary and theft
  • Collision, overturning and falling of foreign object
  • Any other sudden, unforeseen, accidental damages not explicitly excluded


    • EXCLUSIONS

  • Some of the special exclusions under the policy are-
  • Electrical /mechanical breakdown
  • Vehicles designed and licensed for general road
  • Hull and machinery of waterborne vessel/crafts
  • Plant/machinery working underground
  • Equipments undergoing testing
  • Replaceable parts
  • Loss or damage due to explosion of boiler/pressure vessel
  • Total or partial immersion in tidal waters
  • Whilst in transit
  • Consequential Loss



    • BOILER AND PRESSURE PLANT INSURANCE

    The boilers and pressure plants in a factory are supposed to operate at high temperatures and under intense pressures. Such extreme conditions make them susceptible to mishaps, and if it were to happen, it can leave a major impact on the functions of a business. Therefore, securing such equipment is extremely vital as a little bad luck can result in a hazard, putting the people and property nearby in harm’s way. If the boilers and pressure plants in a factory were to explode or collapse due to unidentified or unforeseeable reasons, having this policy in place keeps you well safeguarded. The insurance Policy will ensure that you get the boiler and pressure plant repaired or the equipment replaced. Plus, a policy extension can also help you pay for any damages or injury caused to a third party.


    INCLUSIONS

    Our Boiler & Pressure Plant Insurance policy will cover you when your boilers and pressure plants explode or collapse. This policy will pay for damage to the equipment itself.
    However, if you opt for extra coverage and pay an additional premium, it can also pay for:
  • Your surrounding property
  • Third party liability
  • Express freight, overtime, holiday wages etc.
  • Air freight
  • Additional customs duty


    • EXCLUSIONS

    The following are 'named excluded perils' under the Boiler & Pressure Plant Insurance policy, which are specific risks not covered by the policy.
  • Fire and Allied perils.
  • War and nuclear events
  • Overload experiments
  • Wear and tear
  • Willful act of damage
  • Gross negligence
  • Pre-existing defects



    • MACHINERY BREAKDOWN INSURANCE

    A lot of modern businesses’ growth depends the machines. Unexpected damages can affect the production capability, and in extreme situations, even stop it completely. Physical damage to machinery from accidents or unforeseen circumstances can slow down or even halt production, and can majorly affect your business. This policy provides coverage for the heavy additional costs that have to be paid for repairing or replacing affected machinery. This is when a Machinery Breakdown Insurance can help you out. When machinery and equipment breakdown occurs it grabs substantial financial investment for reasons varied. There is no substitute for perfection in maintenance to ensure zero breakdowns in machine.


    With an additional premium, the policy can be extended to cover the following:

    The following are 'named excluded perils' under the Boiler & Pressure Plant Insurance policy, which are specific risks not covered by the policy.
  • Escalation
  • Property surrounding insured equipment
  • Third party liability
  • Express freight, overtime, holiday wages etc.
  • Air freight
  • Additional customs duty


    • INCLUSIONS

    This insurance policy compensates you for the costs of repair or replacement arising from covered, unforeseen circumstances. This coverage is effective even if the equipment is not in use, has been dismantled for maintenance or overhauling, or is being moved on your premises.


    EXCLUSIONS

    Machinery against unforeseen, sudden accidental physical loss or damage caused by-
  • Carelessness
  • Additional customs duty Short-circuit, disruption, electrical overpressure
  • Failure of operation of safety devices
  • Structural defects, material defects or defects of assembly
  • Fortuitous working accidents such as vibration, maladjustment
  • Loosening of parts, abnormal stresses, fatigue, centrifugal force, excessive speed
  • Defective or accidental lack of lubrication, seizure, water hammer or local overheating
  • Falling, impact, collision or similar occurrences
  • Obstruction or the entry of foreign bodies



    • ADVANCE LOSS OF PROFIT INSURANCE

    Even slight delays in commissioning of projects can cause major losses to a business, stopping it from generating revenues. Material damage policies, in such cases, will not suffice. What is required in such moments is an “Advance Loss of Profit Insurance Policy".
    To run a business, you require a substantial amount of capital; there are some financial commitments that depend solely on the generation of profits. During construction, accidents may occur and your property might get damaged, leading to a delay in operations, and subsequently cause losses. The “Advance Loss of Profit Insurance” can provide you coverage in such situations.


    INCLUSIONS

    The Advance Loss of Profit Insurance is like an extension of material damage policies like the Contractors All Risk and Erection All Risk policies. To avail the Advance Loss of Profit Insurance, you must have at least one of these two policies in effect at the time the damage that led to loss of profit.

    This policy will cover the following:
  • Loss of net profit due to stoppage of business as a result of insured perils
  • Standing charges which continue to accrue in spite of stoppage of business
  • Additional expenditure you incur to maintain normal business activity during the period in which the business is affected
  • The policy is mainly intended to cover the principal owner. But, financiers may also be included in the coverage.


    • EXCLUSIONS

    This policy does not cover consequential losses that are caused by the perils excluded in the material damage policy, i.e. Contractor All Risk or Erection All Risk.



    MACHINERY LOSS OF PROFIT INSURANCE

    For businesses that depend greatly on tools and machineries, a damage or loss to the same could put the processes to a stop. The repairing and restoring phase shall cause further financial losses and time lags. The machinery in any industrial sector business is much like the organ within the human body, the functioning of which keeps the body going. It is the product and other outputs from these machineries that generate income in your business. Any damage or loss caused to these machines will mar your product delivery and cease your cash flow thus greatly affecting your business. Machinery Loss of Profit Insurance policy is designed to help you overcome all such risks.This insurance policy will not only compensate for loss of profits, but also the expenses or costs arising due to the cessation of the regular business processes.


    INCLUSIONS

    The Machinery Loss of Profit policy will pay for the following:
  • Loss of net profit due to the cessation of business as a consequence of insured perils
  • Standing charges which accumulate despite the cessation of business
  • Additional expenses sustained to maintain the regular business processes during the period when the business is affected


    • EXCLUSIONS

    Any resulting loss arising out of causes excluded by the Machinery Breakdown or Boiler & Pressure Plant Insurance Policy is not covered by the Machinery Loss of Profit insurance policy.

    Exclusions include :-
  • Deliberate act or neglect or gross negligence of the Insured or his responsible representatives
  • Damage or loss to the machinery or other items not mentioned in the list of machinery insured though the consequence of material damage to an indicated item in the list of insured machinery is included
  • Damage or loss resulting from defects existing at the time of start of this insurance in the knowledge of the Insured or his responsible representatives whether such defects were known to the Company or not
  • Destruction, Shortage, decline and spoilage of or damage to raw materials, finished or semi-finished products or catalyst or operating media (such as fuel, refrigerant, lubricating oil, heating media etc.) although the result of material damage to an item indicated in the list of insured machinery is included.
  • Any restrictions on reconstruction or operation imposed by any public authority.
  • An extension of the normal repair period for more than 4 weeks on account of –
    • The inability to secure or delays in securing replacement parts, machines or technical services.
    • The inability to carry or delays in carrying out repairs.
    • The prohibition to operate the machinery due to import and/or export customs & other restrictions or by statutory regulations.
    • Transport of parts to and from the Insured’s premises.
  • Changes, enhancements or overhauls being made while repairs or replacements of damaged or destroyed property are being carried out.
  • Loss damage and/or liability caused by or arising from or in consequence directly or indirectly of -
    • Nuclear reaction, nuclear radiation or radioactive contamination
    • Invasion, War, Act of foreign enemy, hostilities or War like operations (whether war be declared or not), Rebellion, Civil War, Revolution, Mutiny, Strike, Insurrection, Lockout, Riot and Malicious Damage, Military or usurped power Civil Commotion, martial law, confiscation, conspiracy, commandeering a group of malicious person or persons acting on behalf of or in connection with any political organization, requisition or destruction or damage by order of any government de jure or de facto or by any public. Municipal or Local Authority, an act of terrorism or the action of any lawfully constituted authority in suppressing or attempting to suppress or minimize the consequences thereof.



    • ELECTRONIC EQUIPMENT INSURANCE POLICY

    Protecting computer and electronic equipment has become essential in this era, where businesses rely on technology,. From broadcasting to viewing online media, from innovative breakthroughs to executing every day work tasks, we depend hugely on technology and electronic equipment. If these were to get damaged or malfunction, the consequences would have a huge impact on the business. Thus, Electronic Equipment Insurance (EEI) ensures that the electronic equipment at your workplace is completely secured. The policy covers the high costs of repair or restoration of the damaged equipment, or its replacement thereof to ensure business continuity at a marginal cost.


    The policy cover can be extended on payment of additional premium to cover the following risks:

  • Escalation
  • Your property surrounding the insured equipment
  • Third party liability
  • Express freight, overtime, holiday wages etc.
  • Air freight
  • Additional customs duty
  • Terrorism


    • INCLUSIONS

    Electronic Equipment Insurance will protect the following list of electronic equipment:
  • Electronic data processing machine
  • Telecommunication equipment
  • Transmitting and receiving installations (including radio, TV, cinema sound reproduction and studio equipment)
  • Material testing and research equipment
  • Electro-Medical Installations
  • Signal and transmitting units
  • Office calculators, duplicating machines and reproduction machines
  • Control and supervisory units


    • EXCLUSIONS

    The policy exclusions/risks are:
  • War and nuclear disasters
  • Damage due to overload
  • Wear and tear
  • Willful act of damage
  • Gross negligence
  • Pre-existing defects known to you



    • CONTRACTOR'S ALL RISK INSURANCE

    Civil engineering projects like buildings, bridges, dams, roads, etc. require huge capital investments and involve high risk of loss or damage. The Contractor's All Risks Policy will cover any damage or loss to a civil engineering project thereby nullifying the risk of heavy losses. There may be accidents, natural disasters or unexpected happenings which can cause physical damage to the project, subsequently putting the responsibility for loss or damage on the contractor. This is where Contractor’s All Risks Insurance comes to your aid.
    This all risk policy that protects the interests of all the parties participating in the project, such as the principal, contractors, sub-contractors and financiers. Additionally, it will also protect the construction materials during storage and construction.


    INCLUSIONS

    The policy cover begins with the start of the project, from the time the first material consignment is unloaded at the project site and ends when the project is finished or handed over to the purchaser or owner.
    The policy cover can be extended to cover the following risks, upon paying an additional premium
  • Escalation
  • Maintenance
  • Clearance and removal of debris
  • Damage to the owner’s surrounding property
  • Third party liability
  • Additional customs duty
  • Express freight
  • Holiday and overtime rates and wages
  • Earthquake
  • Terrorism


    • EXCLUSIONS

    The policy exclusions/risks are:
  • War and nuclear events
  • Willful acts
  • Work cessation
  • Inventory losses
  • Wear and tear