Engineering Insurance… The Ultimate Safeguard For Your Engineering Projects?

In light of the development climate that Egypt and the Middle East witnessed recently, several billions of investments are being deposited in a large group of projects across various sectors, from real estate to industry and joint stock companies, the common factor between all these entities is the engineering aspect, whether in terms of construction or drilling and petroleum exploration.

A detailed list of safety precautions is always maintained in such projects to avoid the crew’s exposure to any danger, which is always the utmost priority, but what about the machinery whose prices and running costs have soared lately?

Despite the exclusive utilization of this machinery by skilled specialists, it is always subject to inevitable potential dangers such as natural disasters, electric current fluctuations, and supply chain deficiencies, these risks can cause significant financial losses for companies, while engineering insurance programs help efficiently in avoiding it to guarantee a solid protection for profits.

Who Can Benefit From Engineering Insurance?

Building contractors, engineering consultancies & construction companies, and any entity that relies on electronic machines and heavy machinery, can benefit from engineering insurance policies as it is available in several forms.

Contractors' All Risks (CAR) Insurance is one of the most prominent types which is characterized by its solid protection of building projects such as towers, roads, and bridges from potential risks such as theft or fire, It can also cover liability costs associated with harm to third parties, such as injuries or damage to neighboring buildings.

Erection All Risks (EAR) Insurance is tailored for projects like power plants, factories, and machinery installation, compensating the expenses for accidental damage that may be caused by any of the previously mentioned risks or loss to equipment during, the testing and commissioning phases.

For industries relying on heavy, expensive machinery, machinery breakdown insurance covers the expenses related to fixing an internal failure in a machine or replacing it due to accidental damage, this helps significantly in lowering financial burdens on industrial entities.

Other forms of engineering insurance include professional compensation insurance & civil engineering liability, guaranteeing there is a tailored program for every company.

How does Engineering Insurance Work?

The process of contracting on an engineering insurance program starts from the risk assessment stage, the insurer oversees the key project details, from location to the project duration and value of the items to be insured as well as the history of any previous incidents.

Detailed tailoring of the policy follows through a deep study of the client's needs, in some cases, different forms of engineering insurance can be integrated into a single policy.

All these aspects are among the primary defining methods for an insurance premium which is calculated after calculating all the covered assets’ value and assessing the potential risk.

In case of any damage, the insurer appoints a surveyor to assess the situation and determine the required coverage and after verification, compensation is provided as per the policy terms.