Construction & Engineering Insurance


Comprehensive insurance includes the following:

Contractors All Risks / Contract Works:

Comprehensive all risk cover intended for the erection of anything between private houses, cluster homes, small blocks of flats up to large projects such as sugar mills, power stations, refineries and the like. Refurbishments of existing structures can also be covered.

Due to the diversity of risks which can be covered under this section it is difficult to go into all the ramifications of this type of insurance. The policy incepts when the site is initially occupied for purposes of earthmoving and is completed when the project has been handed over and has become operational. To be simplistic the cover is similar to that provided under the transit, dismantling and erection policy but because it is all embracing complexities do arise e.g. the description of “the insured” can be extended to include:- the Principle, the Main Contractor, Sub Contractors, Sub Sub Contractors and suppliers. The contract site while being specified, can also extend to suppliers premises and any other situation where work intended for incorporation in the project is carried out (in some cases even overseas).

Extensions to the basic cover are many and varied to suite the individual project. Public liability cover is a standard extension and is often required by contractors when tendering for projects.

Dismantling, Transit and Erection:

Accidental Loss of or damage to plant and machinery during the operations insured against. This is a contingency policy and can include dismantling, movement, loading, transit, offloading, storage, repositioning, re-erection, pubic liability and maintenance / guarantee. Cover can be limited to any or all of these and can be adopted to suite most applications such as exhibition or demonstration and in the case where new machinery is involved the cover can include testing.

The important point to bear in mind is the cover applies strictly to plant and machinery.

Machinery Breakdown:

Sudden accidental and unforeseen physical loss of or damage to machinery and plant arising from mechanical or electrical breakdown, whilst in operation, at rest or during re-erection at the clients premises.

A prudent business owner budgets for the continued operation of his machinery and plant. All machinery and plant have parts that become worn and require replacement and maintenance. Machines must be maintained in good condition to ensure best performance. The budget allocated will take care of the expected normal costs incurred in maintaining machinery. Machinery breakdown insurance comes in at the point where the unexpected has occurred. It must be stressed that the machinery breakdown cover is not intended to cater for the clients maintenance costs.

Machinery breakdown policies are designed to cater for anything from fridge compressors to boilers or turbines, motors, generators, transformers, switchgear, cabling, engines, refrigeration plant, fans, blowers, lifts, cranes, presses, printing machinery, machine tools, process plant and so on.

Business Interruption:

Consequential loss of gross profit, loss of revenue or increased costs of working, arising from indemnifiable loss or damage sustained under the machinery breakdown policy.

This type of policy gives protection against the interruption of business caused by a loss of or damage arising from risks covered under the Machinery Breakdown policy. In other word a loss suffered under the machinery breakdown section will cause the operation of the plant to be suspended until repairs or replacement can be effected. The resultant loss of production (which equates to a loss of turnover and gross profit) is what will be covered under this section.

Deterioration of Stock:

Damage to stock of all description caused by a change in the controlled environment of the holding rooms or chambers arising from damage to the insured machinery that creates the controlled environment which is covered under a Machinery Breakdown Policy.

Plant All Risks:

Loss or damage to construction plant and equipment from any cause whilst in storage, transit between and on the contract site, and whilst being used as a tool of trade. The policy can be extended to include cover for the plant whilst underground and for machinery breakdown. In addition standard cover is available for hiring costs, legal liability arising out of hire and continuing hire charges.

Plant insurance in general lies in two distinct areas. It is either plant hired or owned by the contractor used in carrying out a contract in one form or another or plant used by mining concerns for the purposes of mineral extraction. In the case of the contractor the plant can vary from a simple low cost water carrier to a sophisticated highly complicated mobile crane.

Cover can be arranged for all plant such as portable welding sets, mobile compressors, graders, bulldozers, trench diggers, dump trucks, front end loaders, drilling rigs, mechanical shovels, mobile cranes, crawler cranes, draglines etc. Cover can also be arranged for hand tools.

Complete the form below for a quote or call 086 111 2778