Engineering Insurance

Also, note the following guidelines, tips and considerations applicable to Engineering Insurance:

• Business Interruption: Covers you for loss of profits due to fire or machinery breakdown – meaning the actual gross loss and sometimes including the costs incurred in reducing the cost of claim. Some products also offer prevention of access cover, where you experience losses due to your premises not being accessible to customers (the interruption must normally exceed 24 hours). Public Utilities Breakdown cover is also available for Telecoms, water, electricity supply exceeding 24 hours. Make sure you select an indemnity period that will be adequate enough to reinstate the property to full production, profit and normal turnover. Claims are normally calculated on the basis of the reduction in turnover as a result of the claim as a percentage of average gross profit.
• Civil Engineering Completed Risks: Provides all risks cover for completed structures, should they be exposed to fire, natural disasters, and some other perils. For example: Highways or bridges, to mention a couple.
• Contractors All Risk: Also known as CAR (Contractors All Risks), covers all types of building and civil construction, from residential to huge office blocks. It offers cover against any events that may threaten work under construction. Third party liability normally forms part of the CAR policy. Main insured events are fire, explosion, storms, landslides, earthquakes, floods, theft, burglary (to mention a couple).
• Deterioration of Stocks Cover: Covers damage to stock caused by a change in the controlled environment of the holding or chambers. This arising through damage to the insured’s machinery that creates the controlled environment. Some policies offers policy extensions, such as failure of electricity and stock in process.
• Electronic Equipment: Loss or damage to computers, electronic equipment, IT installations and IT infrastructure, PABX exchanges, ancillary equipment, cell phone networks and data processing, are normally covered through this section. Insured perils may include fire, accidental damage, malicious damage, machinery breakdown. Some extensions may be taken – such as reconstruction of data, losses arising from electricity supply and Telecoms lines and increased cost of working.
• Erection All Risk Cover: If you are erecting machinery or equipment, hired or owned, there is always the risk of loss or damage. Regardless if you are the employer or the contractor you will need good cover for the potential loss or damage to the machinery. Certain policies may include debris removal and professional fees amongst some other extensions and benefits. Cover on site, or in transit to the site, and while being tested or commissioned. Cover may also be offered to a party required as joined insured in terms of the contract.
• Machinery Breakdown Cover: Covers for sudden and unforeseen loss or damages to machinery and plant due to mechanical or electrical breakdown.
• Plant All Risks Cover: Covers loss or damage to construction plant and equipment whilst on site, transit or storage. Typically equipment like cranes, pumps, earthmoving equipment for example. Cover may be extended to hiring costs, legal liability arising out of the hire. Cover is normally based on replacement or market value. Certain product providers may offer Third party liability on Plant being on site, or even on the road for licensed plant. Perils being theft, fire, working accidents, faulty operations, overturning and most natural perils.
• Other Specialities with regards to Engineering Insurance: It may include Power Plants and Generators.