What is Engineering insurance?
Engineering insurance may be simply be defined as that insurance that provides economic safeguard to the risks faced by the ongoing construction project, installation project, machines and equipment in project execution.
Engineering Insurance guarantee damage or loss due to material damage and liability to third parties during the development or at the time of installation , and damage or loss of machine or electronic equipment.
You May Read: What Is Insurance?
You May Read: What Is Insurance?
Types Of Engineering Insurance
Engineering insurance is divided into two category namely; Engineering Insurance Projects and Non-Project:
Insurance (policy) for Engineering Project are of two types:
Insurance Installation (Erection All Risks Insurance / EAR)EAR insurance covers risk associated with damage or loss insured objects during construction and installation during the maintenance period. Nevertheless security will be provided for legal liability to third parties during the construction activities. Examples: installation of antennas, installation of factory machine etc.
Insurance Construction (Contractor All Risks / CAR)CAR insurance is a protection against damage, accident or loss that may befall the construction and implementation of development during the maintenance period. Nevertheless security will be provided for legal liability to third parties during the construction activities. Example: construction of bridges, buildings, roads, dams, turbines etc.
2. There are several types coverage for Non-Project Engineering:
Civil Engineering Completed Risk (CECR) Insurance
Civil Engineering Completed Risk (CECR) Insurance guarantee for civil work completed, such as bridges, dams ,roads, ports, turbines and other civilian buildings. Guarantee given this policy include damage caused by floods, landslides, fire, earthquakes, hurricanes, etc..
Heavy Equipment Insurance (Contractor Plant and Machine / CPM)
Contractor Plant and Machine ‘CPM’ Insurance covers risks associated with damage or loss on the heavy equipment used by the danger caused by theft, natural disasters, collision, tumbled, etc. Example: insurance for, excavators, tractors, bulldozers, etc.
Electronic Equipment Insurance (EEI)Electronic Equipment Insurance covers risks associated with damage or loss of electronic equipment due to the danger that comes from outside, such as short circuit, fire, etc. Example: insurance television studio equipment, telecommunications equipment, CCTV, etc.
You May Read: Electrical Contractors Insurance
Insurance Damage of Machine (MB)
MB Insurance covers risk associated with damage, loss of the machines or machine breakdown. Example: insurance factory machines, refrigerator, etc.
Machine Loss of Profit (MLOP) InsuranceMachine Loss of Profit ‘MLOP’ insurance covers risk associated with loss of gross profit arising from the destruction of refrigerator, machines and other machines that are guaranteed under the Machine Breakdown insurance policy.
Boiler & Pressure Vessel Insurance
Boiler & Pressure Vessel Insurance guarantee losses due to explosion of a boiler or a pressure vessel. Damage to the insured object, damage to the insured’s property, and legal responsibility to third party entities either injury or property damage, are coverage offer by Boiler & Pressure Vessel Insurance
Deterioration of Stock (D.O.S) Insurance
Deterioration of Stock ‘DOS’ insurance guarantee loss on goods decomposition in the room due to damage to the engine air cooling. To get this insurance claim insurance, then the cooler must be insured under the machine of breakdown policy.