Engineering Insurance is an insurance policy that covers a wide range of engineering related risks. It is essentially a comprehensive insurance that provides complete protection against risks associated with erection, resting and working of any machinery, plant or equipment.
Engineering Insurance however has many components. The Erection Insurance covers all kinds of risks involved in the erection of machinery. It covers other risks involved in storage, installation, test runs and commencement of work of the machinery. The Insurance period in such cases starts from the moment the machinery consignment is received to the time the machinery is running and handed over to the right party. The sum insured in this case is the value of the machinery completely erected along with other costs that are included.
There are is a separate insurance for electronic equipments. Such insurance covers any electronic equipment against any damages. The cover can involve either the replacement cost of the machinery or the cost of restoring it. Another such insurance cover is Machinery Loss of Profits Insurance. It covers the losses incurred by machinery due to business interruption. The cover in this case is equal to an averaged out profits for a year.
Another kind of insurance under Engineering Insurance is the Contractors All Risk Insurance. It covers the risk of loss during contract works in civil projects. The Machinery Breakdown insurance on the other hand insures all risks that arise in case of a machinery breakdown. This however doesn’t include breakdown in case of a willful act or fire.
Engineering Insurance is now a need for any manufacturer as breakdown is unpredictable and costs are always high. Every entrepreneur should go for it to ensure that in case of an unforeseen event the financial pressure is handled well. Since the insurance covers almost any kind of loss that can arise, it is best to take up. Moreover, since all machineries include heavy costs it is always advisable to have someone ready to bear your losses when needed.
Alison Larson is an insurance expert writing about insurance since past few years. Author recommend a thorough research on finding the best general insurance company in India for an Engineering Insurance that will cover majority of the risks associated with storage, erection and testing of plant and machinery.
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