Engineering Insurance: Contractors All Risks

TYPE OF OPERATIONS COVER

Any machinery installation e.g. from contracts for the supply, erection and commissioning of machinery for a power station to the individual installation of a new machine in an existing factory.

SCOPE OF COVER

Basically ‘All Risks’ including: Accidental damage e.g. dropping or other damage during lifting/ lowering operations Electrical or mechanical breakdown or explosion during testing operations (new machinery only) Damage due to defects such as workmanship or materials theft and malicious damage Fire and lightning} as appropriate and necessary Flood, storm, earthquake} depending upon circumstances

SUM INSURED This should be the total new replacement value of machinery installed

CONTRACTORS ALL RISK

This provides cover for all risks of damage, loss or destruction of contract works, whether permanent or temporary, including materials and other things meant for incorporation into the works.

It also provides indemnity which the insured collectively or individually, including all participants to the yard shall become liable to pay, according to the law in force, in respect of claims arising out of accident and consequential losses to a third party provided that such accident, injury, damage or loss results from activities in connection with the performance of the contract.

This policy can be used to cover a specific project or provided on an open basis where all projects (falling within the previously agrees limits) are declared prior to commencement of such projects based on the prior declarations. The premiums are then adjusted at the end of the policy period.

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