Introduction to engineering insurance

Engineering insurance policy is so called (all risks policy)

This policy covers all risks except the exclusions contained here in the policy, this policy covers civil construction projects such as: factories, roads, railways, airports, bridges, tunnels, dams, building, water channels, port, etc.
The liability of the insurers shall commence, notwithstanding any date to the contrary specified in the schedule, directly upon commencement of work or after the unloading of the items entered. The insurer’s liability expires for parts of the insured contract, also it extends to cover third party liability.

General exclusions

The insurers shall not indemnify the insured in respect of loss, damage or liability directly or indirectly caused by or a rising out of or aggravated by:

(1) War, invasion, act of foreign enemy, civil commotion, requisition or destruction or damage by order of any government or by any public authority.
(2) Willful act or willful negligence of the insured or of his representatives.
(3) Cessation of work whether total or partial.
(4) Nuclear reaction, nuclear radiation or radioactive contamination.
(5) Loss or damage discovered only when taking an inventory.
(6) Consequential loss of any kind or description whatsoever including, penalties, losses due to delay,  lack of performance, loss of contract or damage due to faulty design.
(7) Wear and tear corrosion, oxidation, and deterioration due to lack of use and normal atmospheric conditions.

All Installation Risks

This policy insurance covers all risks of machines and equipment during installation in the factory.
Accidental loss or damage to property belonging to third parties occurring in direct connection with the construction or erection of the items.

Contractors Equipment

This policy covers the contractors’ equipment and machinery against any loss or damage from whatsoever cause arising during the construction period and also the contractor for his liabilities during the maintenance period. These equipment and machines are as following:
Grader machines, paving machines, construction machines of roads and railways, drilling machines, bridges,  tunnels and building machines.

Contractors all risk insurance

The policy shall cover all types of civil engineering projects like residential office, commercial building, ware houses, hospital, school, factory building, soils, canal, tunnels, sewage and drainage system, roads, dams, bridges, civil work related to ports, power house and all other constructions works.
Scope of cover:

(1) Fire and lightning.
(2) Accidental damage during construction e.g. due to dropping or falling or defective workmanship and material, lack of skill, negligence and malicious acts.
(3) Water damage, flood, storm, and tempest.
(4) Collapse and collision;
(5) Theft and burglary, malicious damage.
(6) Subsidence, landslide, rockslide.

Erection all risk

This policy cover is (all risks) basis, the cover shall commences right from the moment the first consignment arrives at the site and continues during storage at site, during shifting of goods for the purpose of erection, it shall remain in force until the completion of erection, testing and commissioning,  the cover is against all risk of physical loss or damage arising out of  the following hazards:
Scope of cover:

(1) Fire and lightning, theft burglary:
(2) Handling risk.
Impact from falling objects, collision, failure of cranes.

Machinery break down

This policy shall cover the risks of break down sustained by machinery during operation; the policy shall come into force after the completion of installation and commissioning of different types of machines which are covered by this policy;
Machinery, electric power generation turbines, machinery used in chemical industries such as fertilizers factories, electrical steam engines and electrical generators, machines, lifts, different types of cranes and cooling machines.

Electronic Insurance (Electronic Equipment)

This policy shall cover computer equipment’s like computers, radiology equipment massive sterilization, respiratory devices, communication equipment such as telephone, computers, microprocessors, film and TV equipments, facsimile – telephone equipment used for industrial purposes – studio cinematography and television equipment.

Boiler explosion

Scope of cover:

(1) Damage (other than fire) to the boiler and for other pressure plant.
(2) Damage (other than fire) caused to surrounding property of the insured.
(3) Liability of the insured is low on account of death or bodily injury to any person excluding own employees.
(4)    Damage to the third party property.

Spoilage of stock

This policy covers loss or damage sustained by stored goods in cold storage if the cause of such spoilage is attributed to loss or sudden and unexpected material damage of refrigerators machine resulting from accident covered under a valid malfunction or breakage refrigerators machinery policy.