Engineering Insurance constitutes:
Contractors′ All Risk Insurance
I. Contractors′ All risks / Erection All Risks:
These policies cover loss or damage to contract works, construction plant & equipment and construction machinery. They also provide cover for third party liability up to a specified limit as required for the project.
These policies provide cover on an "all risks" basis for sudden & unforeseen loss or damage such as:
Fire, lightning, explosion, flood, inundation, earthquake, theft, burglary etc.
These policies also contain few exclusions that are used internationally, such as:
- Loss or damage due to war, etc.
- Loss or damage due to willful negligence.
- Loss or damage due to nuclear reactions, radiation.
- Consequential losses.
- Mechanical or electrical breakdowns, etc.
Examples of types of projects that may be insured under such policies are:
Oil & gas projects, housing complexes, roads & bridges, sewerage related projects, electro-mechanical works, etc.
II. Contractors′ Plant & Equipment Insurance:
This policy covers all kinds of plant, equipment, tools etc., up to the full values declared by the insured, on an annual basis or for the duration of a contract.
The cover is subject to the same exclusions applicable to the Contractors′ All Risks / Erection All Risks policies.
III. Machinery breakdown insurance:
This policy covers all kinds of plant, equipment, tools etc. Usually factories, refrigeration units etc., require such type of policy to protect their assets