Engineering all risk insurance policy is especially designed for industrial plants and machinery, construction businesses, etc. where developing a new set-up involves some risks that may have devastating financial consequences.
Engineering all risk insurance policy offers coverage at several stages of an engineering project that involves–Storage, Testing, Handling or Commissioning at a plant or machinery engineering site.
People who generally opt for Engineering all risk insurance are the general contractor, subcontractors, consulting engineers, architects, Parties funding the project and in certain cases suppliers and manufacturers of machinery. Some examples of the types of ventures for which Engineering all risk insurance policy is usually purchased include power plants, manufacturing and fabrication set-ups, water and wastewater treatment plants, and telecommunications centers.
Case on Engineering All Risk Insurance
Mr. Kumar, is a contractor for a new engineering and management institute coming up in Himachal Pradesh. He has been suggested by the materials supplier and his insurance advisor to insure his project with an engineering all risk policy.
He earlier though that the policy was meant only for mechanical equipment, but as explained by the advisor, he is eligible to buy this policy as it covers all the risks he is exposed to under the current contract.
Since, his firm is liable to install multiple heavy, and technical equipment at the institute, the policy will help him maintain a safety net in case of any mishap.