Various types of engineering insurances

Civil projects, industrial and building structures from the very beginning of their construction operation and throughout the installation of equipments and machinery and also during test and commissioning to temporary delivery are subjected to various risks and damages resulting from accident occurrence and losing their capital and it is possible that the contractor and the insured employees due to human error and mistakes and neglect cause some damages and losses to third persons and be recognized liable against them.

Various types of insurance can be categorized as following:

1- Contractors all risk insurance (C.A.R)

2- Erection all risk insurance (E.A.R)

3- Construction Machinery and Equipment Insurance (C.P.M)

4- Insurance completed structures (C.E.C.R)

5- Corruption insurance of goods in storage (D.O.S)

6- Electronic equipment insurance (E.E)

7- Machinery break insurance (M.B)

8- Machinery loss of profit insurance (M.L.O.P)

 9- Boiler and Pressure Vessel insurance (B.P.V)

C.A.R insurance

According to this insurance civil and construction projects such as construction projects of residential, commercial, office , schools , factories, power plants , railways, airports, roads, bridges, dams, waste pipes and … are covered. The insurance period is from uploading the material at the site of the project up to delivering the project to the employer. Based on this insurance temporary buildings, equipments, building machinery, adjacent assets and liabilities against third person can be insured. This projects are insured from the starting date up to delivering time to the employer against any king of damage and loss caused by any accident . This insurance is among all risk insurances which means that almost any kind of sudden loss and damage and unpredictable during the period of the insurance will be covered by the insurer, unless specified otherwise, and the most important ones include:

1- Fire, lightening, blast, plane crash, using water or other actions for extinguishing fire.

2- Flood, rain, snow, avalanche, high waves at sea due to volcano.

3- Any kind of storm.

4- Earthquake, earth sitting down, landslides and rock.

5- Normal theft, theft or break in

6- Incorrect implementation of the work, lack of skill, neglect, actions with mischief.

7- Ruin or damage caused to construction material , machinery  will be covered which has happened during the transportation in the field of project, storing or loading and uploading.

E.A.R

This insurance covers the physical and unpredictable damages and losses caused from accidents at the time of implementation of installation of different equipment and also installation of any kind of metal structure in the small and big industrial workshops, in automotive industries, chemical , steel, wood, paper, leather, tile, industries based on agriculture and also telecommunication systems of lab instruments, power plants, projects of transportation of water, gas and power transportation lines .

C.P.M

This insurance policy is issued for different types of equipments such as : Bulldozer, grader, excavator and other similar equipments used in construction works and installation works used by contractors and the caused loss and damages are covered with consideration of conditions and exceptions.

C.E.C.R

The owners of big projects of construction are always seeking to have comprehensive insurance policies to insure their big completed civil project against natural risks and …. The main structures that can be covered in this type of insurance are : residential , office buildings, towers, roads, railways, airport runways, bridges, tunnels, dams, cannels, port, watering networks, water saving tanks, waste, water, oil and gas pipelines and stores and mines at the time of operation.

This insurance will cover the sudden physical and unpredictable losses which require repairing or replacing the item under insurance.

The risks under insurance are : collision of ground, sea, air vehicles, risk of objects’ fall, earthquake, sea huge waves due to volcano, flood , land slide or any other movement of the earth, snow, rain, intentional ruin, fire, lightening and blast.

D.O.S

The aim of providing this insurance is to respond to the need those people who has stored their goods in fridges and they want to insure their goods against decadence. It means that if an accident will defect the equipments of the fridge and the goods will get rotten , this loss will be compensated. It should be mentioned that this insurance doesn’t have any complementary insurance for failure of the equipments .

E.E.

This insurance will insure the risk caused to different electrical equipments used by industrial workshops, industries, medical devices and lab devices, office equipments, alarming systems, hospital equipments, controlling devices, equipments related to cinema and filming, devices for testing the material , receiving and transmitting systems and computer and …. .

Some of the electrical devices can be covered by electronic equipment insurance which is as follows:

1- Computers and their external parts such as keyboard, printer, mediators, screen, platter and extra equipments such as transformer and A.C.

2- Punching card, electromagnetic strips and optical discs.

3- Medical devices such as X-Ray machine, dental equipments, lab equipments, medical diagnostic equipments and ….

4- Telecommunication electronic devices such as central telephone , telex machines, radio television stations equipments, radar, Maritime and air navigation systems.

5- Filming devices, camera, video, audio recording devices.

6- Office equipment such as copy machine, PCs and etc.

M.B.

This insurance will insure the damages and loss caused to equipment and machinery of the factories resulting from mechanical and electrical defects which occurs unpredictably and suddenly. The following equipments can use the mentioned insurance:

- Generators and turbines

- Printing, weaving and milling machine.

- Machinery for food production.

Some of the risks under this insurance are:

- Defect resulting from mechanical failure of machinery.

- Mistakes in lubrication system.

- Weather factors.

- Sudden and unpredictable physical damages.

- Incorrect design

- Electrical failure mainly resulting from power fluctuations.

- Intentional mistakes of workers.

- The external objects that has fallen into the machine.

This insurance type has some exceptions which are as follows:

- Other loss and damages under coverage of other insurances

- Natural losses and damages

- War

- Intentional action of insured entity or its representative

- Wear and corrosion

M.L.O.P

This insurance is complimentary insurance of M.B. insurance and if due to sudden risks caused to the machinery a halt will be created in the factory, it will cover the loss caused by lack of production including current expenses, wages of workers during the off time and the loss profit and the loss if lack of production is far more bigger than the physical damage caused to the machinery.

B.P.V

This insurance covers the damages and loss caused by physical or chemical blast of boilers and tanks under pressure which damages the equipment itself as well as the other assets of the insured entity. This insurance also covers the human and financial loss and damages caused to third person.