What exactly does engineering insurance protect? While working on and constructing expertly designed machinery and technology, engineers are exposed to a variety of risks that can result in catastrophic losses. Not only could this result in financial loss, but could cause injury to the Engineer or his or her family.
When an engineer is involved in the design, construction or operation of machinery and technology, he or she needs to be aware of the various risks that can result in disastrous consequences. These risks include damages caused by fire, explosions, slips and falls, electrical problems, adverse weather conditions and more. Engineers need to ensure that they are adequately covered in the event of such disasters. This is where engineering insurance comes in. Engineering insurance protects engineers from the devastating risks associated with the design and construction of machinery and technology and the dangers that can arise due to these activities.
For example, suppose you are the engineer who designed and built a new machinery programme for a large Engineering firm. While ensuring that the machinery was properly installed and maintained, one of the main concerns was with regards to the protection of those involved in the design and construction process, namely the Designers and Contractors. You therefore designed and built machinery which contained many potential internal damages. The machinery breakdown policy would pay for the cost of repairing or replacing the machinery in the event it was damaged or destroyed due to internal damages.
An additional benefit that you may receive under the terms of your engineering insurance policy is the cover for third party liability claims. Should someone sustain damage as a result of using your services, then you are protected from the costs of medical bills, without having to incur these costs yourself. This is often a common way for engineers to save money when providing engineering services.
If you are an engineer, or your company employ or relies on individuals to provide engineering services, it is essential that you have adequate risk cover. Without appropriate risk cover, you are exposed to the risk of substantial losses. These include any claims that arise from accidents caused by your equipment or property, or claims made against you due to external injuries. Your engineering insurance policy will provide coverage for third party claims. This provides coverage against:
In order to determine your engineering insurance cost, it is necessary to understand the various types of insurance available. In this respect, the different types of coverages can be broadly classified as: General Liability Insurance, Professional Liability Insurance and Employer’s Liability Insurance. General Liability Insurance covers you for third party claims for injuries or damage to others. Professional Liability Insurance protects you from claims made against you by employees, employers and clients for injury or damage caused by your work. Finally Employer’s Liability Insurance provides protection against claims made against you by customers, suppliers, public or employees for injuries or damage to property caused by you or your company’s products or services.