Risks associated with Plant, Equipment and heavy machinery used in construction or erection are complex in nature in view of the extensive use of such equipment or liabilities associated with the usage of such equipment or engaging in construction or erection projects.
Equipment used for survey, photography, Data capture or measurements or certain specialist functions are generally carried out from your premises, which require special consideration as these are exposed to the risks of loss or damage while packing, transportation, storage at sites or at premises, whilst in use etc., These equipment can be insured under specific suitably worded Business equipment all risks policy.
We at Millennium Insurance Brokers with our expertise and experience in handling wide variety of these risks are able to offer proper advice and insure them properly.
Contractors are exposed to the unique risks associated with the civil works right from the time of commencement of works at site till the project is handed over or put into use. Generally the contract works are exposed to loss of or damage to or destruction during the course of construction due to fire lightning, theft, burglary, natural calamities, flood, inundation and any loss of or damage to the property insured by any accidental means. The contractor can also be liable for third party injury or death or third party property damage. Apart from the above material damage and legal liabilities the contractor may be exposed to additional costs such as Debris removal, professional fees, or certain transit risks.
Contractors may also be exposed to the risks due to the loss of or damage to plant and equipment like bull dozers, cranes, boring machines, compressors, loaders, road rollers, materials etc used in construction sites. While these equipments can be insured under Contractors All Risks Insurance where the cover is limited to that particular site, specific Contractors Plant and Machinery policy is recommended for wider cover.
Mobile Plant, Equipment or heavy machinery generally used away from your premises is exposed to accidental physical loss or damage due to sudden unforeseen reasons whilst it is under work or at rest and related liability arising from its use. Apart from the accidental loss or damage, your plant or machinery is exposed to breakdown caused by electronic heating, electrical failures and faults, obstruction of foreign objects on the machine, impact, collision, excessive running etc.,
Plant and Equipment hired out exposes to its unique risks associated with the type of Equipment, its operation and the terms of hire. These have to be very carefully evaluated to ensure Insurance Policies suit the specific need. Properly designed Contractors Plant and Machinery (CPM) policy provides protection from the loss of or damage to the plant itself and if extended legal liabilities arising from them.
These days technology drives the business and it is critical to analyze the risks exposed to such Electronic Equipment, Computers or any other data carrying machinery. Generally these equipment or computers or their accessories are exposed to the risks of accidental physical loss or damage and its financial and legal implications. Apart from the accidental physical loss or damage to electronic equipment or computers they may breakdown due to electrical/electronic failures and faults, handling defects, heating, voltage fluctuations etc.
Interruption following loss or damage or breakdown of electronic equipment or computers can have serious financial implications on business. The consequential loss is in general due to reduction in turnover following loss or damage to computer systems, increased cost of working, standing costs and cost of reinstating the lost data.
Professional advice should be sought to evaluate risks of damage to Equipment and financial or legal implications and design Insurance policies to protect against such risks.
Machinery engaged in processing or industrial units or factories are exposed to their own unique risks. Due to continuous use of machinery they are bound to generate heat or steam which needs to be carefully evaluated and insured suitably. Machinery engaged in factories and industrial process can also breakdown and the process may have to shut down due to damage or breakdown. Loss of revenue following Damage or Breakdown of machinery also can be insured under a properly worded Machinery All Risks policy. Boilers or Compressors generating steam are exposed to the risks of explosion which can be insured under specific Boiler explosion Policy.
Owners may also be exposed to serious financial and legal implications from the accidents and or breakdown resulting in loss of use of such plant or machinery until it is restored. Principles of insuring, valuation and reinstatement of such plant, equipment and machinery are dissimilar from other property. Professional advice should be sought to evaluate the risks of Contractors Plant and Machinery and the financial and legal implications to ensure the Insurance policy caters to the specific exposure.
If the contract involves more of erection than civil works a properly worded erection all risks policy would be necessary as it operates in the same manner as Contractor’s all risks policy but provides certain additional coverage against Loss of or Damage to erection works, Location risks, Operational risks, Handling risks, Negligence, Malicious damages etc besides financial and legal implications including whilst commissioning and testing.