Engineering is all about the machinery and equipment involved in any business. The scope of engineering insurance differs based on the specific industry or business sector the firm operates in. We understand that businesses within the engineering sector vary greatly and your insurance needs will reflect this too. Our specialist team works with you to ensure you have the right type and level of cover to protect your company.
So why is engineering insurance so important? Put simply, failure of machinery, plants or equipment may result in a material loss, hindering the normal flow of operations. Breakdown of vital machinery can also have a significant impact on timeframes, delaying project completion and eventually affecting the bottom line.
Although policies will depend upon your individual requirements, most engineering insurance will cover the following:
- Computers and other electronic devices or equipment
- Contracts of all risk insurance that covers unexpected loss or damage caused by machinery failure, including breakdowns caused by internal defects, third party claims on injury or damage to property pertaining to construction projects
- Loss or damage while erecting machinery, plants, steel structures, construction machinery and third party claims on property damage or personal injuring sustained during installation projects
- Stock damage
- Boiler and pressure vehicle insurance to cover for explosions or collapses of boilers or pressurised containers
- Business interruption
- Loss of profits caused due to failure of machinery during installation or construction projects
Engineering insurance is mandatory in all projects that involve the risk of explosion or electrical failure. Material damage cover does not comprehensively cover all losses caused by explosions and totally exempts damages caused by pressurised vessels. Electrical failures on the other hand affect computerised systems and processes and are required to compensate for affected installations, cost of additional work required to get the process up and running, and also to restore any data loss incurred during the failure.
Plants owned by the contractor or temporarily hired to complete a given project also need to be insured against damage and breakdowns, as well as loss of profits.
Civil projects involving construction of public infrastructure structures such as rails, roads and air terminals are exposed to more risks and are insured accordingly depending on exposure to natural elements, design and building materials and construction approach, etc.
Similarly, building projects are insured based on their location, demolition requirements, proximity to adjacent structures and roads, depth of building foundation, construction techniques, machinery and equipment involved and exposure to public and on-site workers.
It is important to understand all the different aspects of engineering insurance before deciding on a suitable policy. We explain everything you need to know as clearly and simply as possible, finding you adequate cover at the best price.