The most important insurances for engineers and the five different domains in America
Except that you’re an insurance expert, a subject-matter professional, or a really versatile fellow, “engineering insurance” may seem as new as electronic insurance.
Life insurance, health insurance or auto insurance is probably the most common form of insurance we know about in Nigeria.
Engineering insurance may seem uncommon in this part of the world as it appeals to a niche sector. However, it is worth noting that there are insurance companies that provide their services in Nigeria.
Let’s explore the dynamic symbiotic relationship between engineering and insurance. Have some popcorn and a drink.
What is engineering insurance?
Engineering insurance is a branch of insurance that covers risks related to accidents related to engineering.
The engineering industry revolves around design, creativity, and construction. As a technical heavy sector, there are trends of eruption of construction related accidents and risks.
Therefore, in order to put more technically, engineering insurance caters to the various forms of uncertainty associated with on-site construction, including the use of machinery and plants.
Types of engineering insurance
There are insurance companies that offer some or all types of engineering insurance which we will examine later.
1. All Risks Insurance Factory
Remember how we referred to “machine and plant use” in our definition of engineering insurance?
Simply put, this insurance policy has been simplified to meet unexpected losses and damages to operational tools.
Construction equipment and operational machinery are susceptible to damage due to exposure to harsh environmental conditions.
Do you own or operate factories and engineering machinery? You may want to consider getting an All Risks Plant Insurance policy.
2. Device breakdown policy
As the name implies, the machine failure policy provides loss coverage for sudden or unexpected damage to equipment – especially while it is in use.
Internal and external damages are covered in the device failure policy. Some of these internal damages can include lubrication defects, electrical damage, overheating, and the like.
If you own a plant or refrigeration unit(s)? A hardware failure policy can also prove invaluable in protecting your assets.
3. Electronic Equipment Policy
Often, this policy covers systems and devices that attract low voltage and power.
Do any devices come to mind? Well, it includes common devices like computers, UPS units, stabilizers, and the like. Medical equipment such as ultrasound machines and x-ray machines are not sidelined in the league.
Therefore, the insurance company will be responsible for the cost of replacement or repairs necessary to return the electronic equipment and devices to the previous condition.
4. Cover all contractor risks
You guessed right to the title and description – it covers contractors and provides financial protection against damage or loss incurred during construction projects.
Also, like the other forms of engineering insurance we have described, Contractor All Risks Coverage provides cover against loss or damage to plant and equipment.
This policy is consistent with our reference to construction-on-site uncertainties. It is specific to civil engineering projects such as buildings, bridges, airports, and the like.
Did I also mention that Contractor All Risks Coverage covers fire incidents during construction work in progress? This, however, is mainly included under the fire insurance policy.
5. Erections against all risks
Here, the covered risks deal with the installation of machinery or plant structures. Other than including, installation, commissioning and testing of machinery activities.
The context of the equipment that we described from the beginning tends to be geometry as we set it up in the beginning.
For example, equipment such as excavators, bulldozers, motor graders, trenchers, tower cranes, docks and many others; Visualize construction machinery on site.
Does this description appear as you are involved in? You should include an All Risk Build policy insurance in your to-do list.
The result
What kind of engineering insurance policy is there for your imagination? Although they have similar characteristics, they each serve distinct purposes. Review your needs against major deliverables for each engineering insurance policy.
