Engineering Insurance Policy

Concept of Coverage

Ta’awuniya Insurance Company offers a range of engineering insurance services that cover all engineering risks, except for the exclusions stated in each policy.

Types of Policies / Coverages

• Contractors’ All Risks (CAR)

This policy covers losses and damages to construction project components, including equipment, machinery, and devices, etc. It also covers projects such as factories, roads, bridges, dams, railways, and airports. Coverage includes permanent and temporary works executed by the contractor from the time materials arrive on site through construction until completion. Coverage may be extended to include maintenance periods, and it also covers third-party civil liability.

• Erection All Risks (EAR)

This policy covers all risks to which machines and equipment are exposed during installation in factories up to the end of the testing/commissioning period, such as fire, lightning, explosion, aircraft crash, etc., or any other sudden and unforeseen incidents. It also covers third-party civil liability.

• Contractors’ Plant & Machinery (CPM)

This policy covers contractors’ equipment and machinery—such as cranes and lifting equipment, earthmoving equipment, drilling equipment, transport means, etc.—while located at the work site, against material damage caused by unforeseen incidents such as fire, rains and floods, storms and cyclones, earthquakes and tremors, poor performance or lack of experience/skill in operation, operating errors, and transport/movement errors within work sites across different projects.

• Machinery Breakdown (MB)

This policy covers breakdown risks to machinery during operation, including various types such as machines, elevators, hoists, and machinery used in chemical industries.

• Electronic Equipment Insurance (EE)

This policy covers computers, imaging devices, sterilization equipment, and ventilators against material damage resulting from fire, ignition, explosion, firefighting losses, smoke, gas oxidation, leakage, humidity, landslide, storms, electrical circuit failure, overload, incorrect operation, lack of skill, malicious acts by workers or others, burglary, and robbery.

Additional covers may be added such as earthquakes and cyclones, riots and disturbances, transit risks, air-conditioning failure, and theft. Coverage may also extend to increased cost of working when the insured rents replacement equipment or transfers information and incurs additional expenses, compensated according to the agreed daily or monthly limit.

• Boiler Explosion (BE)

This policy covers boiler explosion risks, including the destruction affecting the boiler or the pressure vessel described in the insurance, and includes third-party liability.

• Deterioration of Stock (DOS)

This policy covers loss or damage to goods stored in refrigerated stores when the deterioration is due to sudden and unforeseen material loss/damage to the refrigeration machinery as a result of an incident covered under a machinery breakdown policy.