Engineering Insurance - The Perfect Safety Cover
What is Engineering Insurance?
As the name suggests, this policy undertakes safeguarding any kind of economic risk associated with ongoing construction project installation machines, equipment or any other elements in the project. Based on the project, it can be classified as construction project all risks and installation projects all risks insurance. Depending on the attribute of the object, it can be divided into projectal risks insurance, and machinery breakdown insurance.
What are the functions of this particular policy?
- Loss Compensation
- Material loss: If there is any loss caused due to accident on the site or natural disasters, compensations are made under this clause. However, you need to take the exclusions into consideration.
- The third party liability: As per the law, this policy takes care of any sort of injury or damage caused to the third party in construction sites and adjacent areas caused by the accident that directly relates to the insured project.
- Exclusions: There are certain exclusions to these policy functions. For instance, engineering design, construction technology error, construction material quality defects, mechanical damage of machinery and equipment that happens without external momentum.
- Special Clause
More than 40 special clauses are available on the basis of risk assessment and payment of additional expenses, including clauses in respect of strike, riot, and civil commotion, limited liability engineering insurance period clause, extended liability guarantee period clause, special fee clause, clause in respect of buildings and tunnels in earthquake region.
- Scope of Cover
Keeping the benefits provided by the policy in mind, there are following benefits in the form of cover provided.
- If there are any sort of faults in the base and construction
- Faulty operation, lack of skill, negligence
- Tearing apart on account of centrifugal force
- Any accidents caused due to electrical causes and short circuit
- Additional Covers
- Loss or damage due to: air freight, express freight (excluding air freight) overtime & holiday wages, insured's own surrounding property, third party liability