Unless you are an insurance professional, subject expert, subject matter expert, or truly multi-disciplinary, "engineering insurance" may sound as new as electronic insurance.
Life insurance, health insurance, or auto insurance is probably the most common type of insurance that we know of.
What is engineering insurance?
Engineering insurance is a branch of insurance that covers risks related to engineering accidents.
The engineering industry is about designing, creating, and building. As a heavy technical industry, construction-related accidents and hazards tend to explode.
So, to put it more technically, engineering insurance addresses various forms of uncertainty associated with on-site construction, including the use of machinery and facilities.
Types of engineering insurance
There are insurance companies that offer some or all types of engineering insurance which we will explore later.
1. All Risks Insurance Lab
Remember how we talked about the "use of machinery and plant" in our definition of engineering insurance?
Simply put, this insurance policy has been simplified to cover unexpected loss and damage to operational vehicles.
Construction equipment and operating machinery can be damaged by exposure to harsh environmental conditions.
Do you own or operate an engineering plant and machinery? You may want to consider purchasing an all-risk insurance policy.
2. Device failure policy
As the name suggests, a machine breakdown policy provides loss coverage for sudden or unexpected damages that may occur to equipment, especially while it is in use.
If you own a refrigeration plant or unit(s)? A hardware failure policy can also be invaluable in protecting your assets.
3. Electronic equipment policy
In general, this policy covers systems and devices that consume low voltage and power.
Can you think of any device? They include commonly used devices such as computers, UPS units, stabilizers, and the like. Medical devices such as ultrasound equipment and x-ray machines are not excluded from the league.
Therefore, the insurance company will be responsible for any replacement or repair costs needed to recover electronic equipment and devices.
4. Covering all contractor risks
You guessed the title and description right - it covers contractors and provides financial protection against damage or loss during construction projects.
Also, like the other types of engineering insurance we've described, contractor all risks coverage provides coverage against loss or damage to plant and equipment.
This policy aligns with our reference for on-the-job construction uncertainties. Specialized in civil engineering projects such as buildings, bridges, airports, and the like.
Did I mention that the contractor's all-risk coverage also covers fire accidents that occur during construction work in progress? But this is mainly included in the fire insurance policy.
5. Erection against all risks
The risks addressed here relate to the installation of machinery or plant structures. Installation, commissioning and testing of machines are not included.
The equipment context we define from the start tends to be the same geometry as we created it.
For example, excavators, bulldozers, motor graders, trenchers, tower cranes, pavers, and much other equipment; Visualize construction machinery in the field.
Does this description sound like you are involved? You should add an all-risks insurance policy to your to-do list.
What type of engineering insurance policy is available to your imagination? Although they both have similar properties, they each serve different purposes. Review your needs against the major outputs of each engineering insurance policy.