Engineering

Contractors’ All Risks Insurance, Engineering Project Insurance Cover, Advance Loss on Profits Insurance, Contractor’s Plant and Equipment Insurance, Plant All Risk Insurance, Contractor’s Machinery Breakdown Insurance, Loss of Profits following Deterioration of Stock, Electronic Equipment Insurance, Business Interruption Following Electronic Equipment Insurance, Civil Engineering Completed Seamless Project Insurance are all types of insurance policies designed to cover various aspects of construction and engineering projects. These policies provide coverage against a range of risks including damage to property, loss of profits, and business interruption due to machinery breakdown, electronic equipment failure, and deterioration of stock. These insurance policies are essential for contractors, engineers, and project owners to protect their investments and ensure that their projects are completed on time and within budget.

Contractors’ All Risks (CAR) insurance policies cover all types of building and civil engineering construction, from residential (housing) to commercial (shopping centres and office blocks) to infrastructure (roads, bridges, dams, water and sewage reticulation pipelines), etc. They offer protection against the hazards which may threaten works under construction. Most construction projects include certain elements of machinery erection, such as the installation of air conditioning and lifts in buildings.

Often projects require cover for both construction and erection elements of a project and associated third-party liability cover coupled with resulting loss of profits this is conventionally achieved by issuing two or three separate policies the engineering project insurance epic policy combines these elements into one policy

This type of insurance may also be encountered under the name CAR loss of profits delayed earnings insurance delayed opening of business the lion startup loss or rent and loss of standing charges including debt servicing costs it is a business income protection cover with the aim of covering the principles loss of gross profit resulting from a delay in completion of the construction and or erection works a prerequisite for granting ALOP is for an underlying CAR or EPIC policy to be in force normal working delays are not covered under ALOP

Construction often requires heavy specialised machinery like tunnel boring machines, earth-moving equipment, cranes, pumps, and air compressors. These items cannot be covered by an endorsement under existing policies. While specific plant items may be used for only one construction site, jobs do not usually last for the whole construction, and the plant is moved to the next site as soon as the job is done. Therefore, it is not suitable to grant cover by means of an endorsement to the CIA aurora pic policy. An annually renewable contractors plant and equipment policy is preferable since it caters to plant and equipment used at different locations.

Machinery breakdown in the insurance offers protection against sudden and unforeseen physical loss or damage to machinery which has been erected and is operational or at rest it is accident insurance for machines for internal breakdown or derangement machines have a limited lifespan as they are exposed to wear and tear there for machinery owners must appreciate their machines annually and establish reserves for replacement

Similar to loss of profits following fire machinery loss of profits covers the financial consequences of machinery breakdown

Deterioration of stock is special insurance for the protection of perishable goods stored in warehouse type coldstores or controlled environment rooms the policy is not intended for goods stored in the retail shops/stores

Electronic equipment insurance policy offers complete protection for all types of electronic equipment such as entire information technology installations telephone exchanges cellphone network specialised electronic medical equipment electronic measuring equipment etc

Similar to business interruption following fire electronic equipment insurance business interruption covers the financial consequences of an electronic equipment loss

Some completed civil engineering structures are only exposed to a negligible fire hazard and therefore typical fire policy would be inappropriate however these structures can still be exposed to elemental perils geological conditions or hazards from operation and use of the structure

Increasingly large projects require comprehensive insurance cover an inherent problem is that distinct individual policies issued by possibly different insurance companies will result in gaps in cover and disputes as to which insurance policy will respond to some events this policy was designed to eliminate these problems