Engineering Insurance

Some of the common engineering lines we offer are the following:

a. Contractors’ All Risks (CAR) Insurance
This insurance offers comprehensive and adequate protection against loss or damage in respect of the construction projects such as buildings, roads, bridges and other civil engineering projects against accidents resulting in loss or damage of works in progress, materials, construction equipment and machinery during the period of construction. Covers the cost of the completed portion inclusive of the cost of materials on site, wages, freight and customs duties. May also include third party liabilities arising from construction activities. This may also be extended to cover the period of testing.

Some of the perils insured are:
• Fire, Lightning, Explosion
• Earthquake, Rockslide, Storm, Typhoon, Flood, Inundation
• Subsidence, Landslide
• Faulty or Unsuitable Materials
• Bad Workmanship
• Burglary, Theft, Robbery
• Any other peril that is not specifically excluded.

b. Erection All Risks (EAR) Insurance
This insurance offers comprehensive and adequate protection against against accidents resulting in damage or destruction to machinery, mechanical equipment and apparatus during the course of erection or installation. EAR may be used to cover the erection or installation of individual machinery or for the erection of complete factories or industrial plants. May also include third party liabilities arising out of the erection activities.

Perils insured are the same as to Contractors All Risk Insurance, and may further be extended to include the following:
• Removal of debris
• Testing and commissioning for equipment
• Accidental body injury to third party
• Accidental loss or damage to property belonging to third parties occurring in the direct connection with the erection, construction or testing of items insured

c. Electronic Equipment Insurance (EEI)
This insurance is an all risks cover appropriate for accidents involving electronic equipment such as electronic data processing equipment (computers), medical equipment such as ECG machines, X-ray and other equipment used in hospitals and laboratories; communication facilities such as telephone exchanges, radio, television and communication apparatus, and other miscellaneous equipment. This policy may cover not only the loss of or damage to the electronic equipment but may also extend to cover the material value of the external data media and the cost of reprocessing lost information as well as the additional expenses incurred as a result of the breakdown of the electronic equipment.

Coverages are as follows:

Section I – Material Damage

Some of the perils insured under Section I are:
• Fire, Lightning, Explosion
• Subsidence, Landslide
• Falling Aircraft
• Smoke, Soot, Corrosive Gases
• Water and Humidity
• Short Circuit. Under-Voltage, Over-Voltage
• Faulty Operation, Lack of Skill, Gross Negligence
• Malicious Acts of workmen, employees or third parties
• Burglary, Robbery

Coverage can be extended to cover any or all of the following perils but subject to additional premium:
• Theft
• Riot, Strike and Civil Commotion
• Storm, Typhoon, Cyclone, Hurricane
• Earthquake
• Volcanic Eruption
• Tsunami

Section II – External Media Cover (for EDP equipment only)

The Insurer shall indemnify the Insured for anything material damage to external media caused by any peril indemnifiable under Section I of the Policy.

This cover applies while the insured data media are kept within the premises.

Section III – Increased Cost of Working Cover (for EDP equipment only)
The Insurer will indemnify the insured for any additional expenditure incurred, if material damage indemnifiable under Section I of this Policy gives rise to a total or partial interruption of operation of the EDP equipment.

Covered Expenses:
• Additional expenses which may arise if the insured’s computer breaks down due to peril covered under Section I.
• Use of substitute EDP equipment is also covered under this section of the policy.

d. Boiler & Pressure Vessel Insurance (BPV)
Provides accident insurance for boilers and pressure vessels that are normally used in steam power stations and factories, covering the risk of explosion and collapse.

Explosion means the sudden and violent rending or tearing apart of the structure of the boiler or vessel, or any part or parts thereof by force of internal steam, air or fluid pressure causing bodily displacement of said structure and accompanied by forcible ejectment of its contents. It shall also mean any damage to the structure of the boiler by force of the sudden and accidental combustion of ignited furnace or flue gases.

Collapse means the sudden and dangerous distortion of any part of a boiler or vessel caused by the crushing stress of external steam or fluid pressure whether attended by rupture or not; it does not include slowly developing deformation due to any cause.

e. Machinery Breakdown Insurance (MB) –
This insurance policy protects owners of machinery against any unforeseen and physical loss or damage necessitating its repair or replacement due to causes arising from:
• Defects in casting and material,
• Faulty design,
• Faults at workshop or in erection,
• Bad workmanship, lack of skill, carelessness,
• Shortage of water in boilers,
• Physical explosion, short circuit,
• Tearing apart on account of centrifugal force,
• Or any other cause not specifically excluded.

This policy is designed to cover these various types of machinery:
• Boilers
• Turbines
• Compressors
• Steam Engines
• Generators
• Diesel Engines
• Transformers
• Motors
• Pumps