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Engineering Insurance

Engineering Insurance
Engineering Insurance

Since the emergence of the industrial revolution, there has been a remarkable increase in demand for infrastructure, construction and industrial projects, which has necessitated the existence of insurance to protect these projects.

We at Jordan French Insurance Company “JOFICO” offer collective construction and engineering insurance which provides the best coverage, economic safeguard and protection against risks faced by the ongoing construction projects, installation projects, workers, machines and equipment in project operation. In addition to the losses resulted from these hazards.


Types of Engineering Insurance Policies:

The Basic cover of (C.A.R) Policy is to offer Comprehensive Protection against Sudden and Unforeseen Loss or Damage to Civil Engineering projects like Residential and Office Buildings, Power Stations, Factories Roads, Sewerage and water Distribution Projects, Harbors, Airports, Bridges, Dams, Tunnels, Canals, Stadiums, …etc.

  • The Contract Works including existing Structures
  • Infrastructure and landscaping Works
  • The Construction Plant and Equipment
  • The Construction Machinery
  • Legal Liability arising out of Property Damage or Bodily Injury suffered by Third parties and occurring in connection with the Contract Works.

Contractors’ Plant and Machinery Policy (C.P.M.) gives Contractors the insurance protection to the Plants and Machinery regardless of its type. For example, Cranes, Lifting Equipment, Road Construction Machinery, Paving Equipment, Excavators, drills, etc...
The Cover is provided on an Annual basis as all risks cover with named exclusions, conditions and extensions to cover the Plant and Machinery while they are running and/or shut off

The company is Liable for Loss or Damage due to the following causes:

  • Sudden and unforeseen accidental loss or damage
  • Fire, Theft, and Burglary
  • Flood, Inundation, and Windstorm
  • Earthquake, Landslide, and Volcanism

Machinery insurance provides cover against a wide range of losses resulting from breakdown of plant production equipment, boilers, pressure vessels, heating and cooling equipment, etc.……. In addition to material damage, equipment breakdown frequently results in substantial consequential loss such as business interruption (e.g., power generation, refrigeration system, etc.…) Insurance can be extended to include these consequential losses either as stand-alone coverage or as endorsement to the direct damage coverage. The Cover provided on an Annual basis and the company is normally Liable for Loss or Damage due to the following causes:

  • Faulty Operation
  • Physical Explosion
  • Storm, Frost
  • Short Circuit, Excess Voltage and Other Electrical Causes

Similar to Loss of Profits following Fire, Machinery Loss of Profits covers the financial consequences of a machinery breakdown. The coverage is limited to the actual loss of gross profit sustained due to a loss covered under an MB policy, and also insures costs incurred in reducing the amount of a claim.

The Electronic Equipment Insurance policy offers complete protection for all types of electronic equipment such as entire Information Technology (IT) installations, telephone exchanges, cell phone networks, specialized electronic medical equipment, electronic measuring equipment etc. The policy is of an all-risks nature, covering unforeseen accidental loss or damage. The coverage includes material damage, business interruption, increased cost of working, comprehensive software and software Business Interruption (BI). The company is normally liable for loss or damage due to the following causes:

  • Fire, Lightning
  • Explosion, Smoke
  • Water, Humidity
  • Burglary
  • Human Errors
  • Lack of Skills
  • Short circuit and Other Electrical Causes

Erection all risks insurance offers the contractor the benefit of having simple, complete coverage based on the all-risks model, encompassing the risks of fire, explosion and natural hazards. This type of insurance was designed to protect contractors during the erection and testing of facilities against Sudden and Unforeseen Loss or Damage.

D.O.S Covers Loss or Damage of Goods in Cold Storage due to Sudden and Unforeseen Breakdown of Refrigerant Machinery The Coverage can be extended to include some other Risks, such as:

  • Strike, Riot and Civil Commotion
  • Failure of Public Power Supply
  • Failure of Non-Public Power Supply

This policy is designed to cover explosion (the sudden and violent rending or tearing apart of the permanent structure of a boiler or other apparatus by force of internal steam or fluid pressure) and collapse (the sudden and dangerous distortion of any part of a boiler or other apparatus by bending or crushing caused by steam or fluid pressure).
In addition to damage to the boiler or other apparatus described in the schedule, damage to auxiliaries and surrounding property e.g., buildings and machinery, liability of the Insured at law for fatal or non-fatal injuries sustained by any non-employee, liability of the Insured at law for damage to property belonging to third parties. This policy can also be extended to cover inland transit, extra cost for overtime, express delivery and airfreight.
General policy exclusions include defects due to wearing away or wasting of materials, grooving or fracturing whether by leakage corrosion or by fuel action, failure of individual tubes in boilers of water tube, damage to Insured’s property caused by fire whether resulting from explosion or any other cause whatsoever, loss sustained by stoppage of work, loss or damage arising out of hurricane, cyclone or other convulsion of nature, and any kind of consequential losses.

Or “Inherent Defect Insurance” is a type of insurance that is requested (by the contractor or principal) to cover costs associated with the potential collapse of the building after completion. The names of this insurance are derived from the fact that it covers the 10-year period after completion of the project but there is no compulsory requirement to insure. The cost of the insurance can significantly increase construction costs and may be up to 1.5% of structural value (including the Technical Inspections that the insurers mandate).

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