Engineering insurance is a type of insurance that provides coverage specifically tailored to protect against risks associated with engineering projects, machinery, and equipment. It offers financial protection for various stages of construction, operation, and maintenance of engineering projects. Here are some key areas that engineering insurance typically covers:
1. Construction projects: Engineering insurance provides coverage for risks related to construction projects, including civil engineering, infrastructure, buildings, and installations. This includes protection against risks such as material damage, mechanical or electrical breakdown, and construction delays.
2. Machinery and equipment: It covers the cost of repair or replacement of machinery and equipment in case of accidental damage, breakdown, or malfunctioning. This can include coverage for manufacturing plants, industrial machinery, and specialized equipment.
3. Contractor’s Plant and Machinery: This coverage extends specifically to contractor-owned or hired-in machinery and equipment used during the construction process. It safeguards against loss, damage, theft, or accidental breakdown of these assets.
4. Third-party liability: Engineering insurance often includes public liability coverage, which protects against legal liabilities towards third parties, such as bodily injury or property damage caused during the construction or operation of an engineering project. This coverage can also extend to cover legal defense costs.
5. Delay in start-up (DSU) insurance: DSU coverage compensates for losses that arise due to a delay in project completion beyond the agreed timeline. It typically covers additional expenses incurred, loss of revenue, or financial penalties.
6. Professional Indemnity: This coverage protects engineers, architects, and other professionals involved in the project against claims arising from errors, omissions, or negligence in their professional services.
7. Advanced Loss of Profit (ALOP) insurance: ALOP coverage protects against financial losses resulting from a delay in project completion, which may negatively impact expected profits, revenue, or business interruption costs.
It’s important to note that the specifics of coverage may vary depending on the insurance policy, so it’s advisable to consult with an insurance professional or broker to understand the exact terms and conditions of any engineering insurance policy.