Engineering Insurance
Safety is finding the worst case scenario and then preparing for it.
Buildings are getting smarter each day.
With increasing adoption of technology and sophisticated machinery in buildings, project values per square meter have
never been significantly higher.
The necessity for coverage permeates every manufacturing and construction situation, from the basic sites to the world’s largest megastructure projects.
JR Global is able to guide you through the ways we can insure your projects, infrastructure, machinery, equipment and other high-value interests from damage, theft, and a variety of loss scenarios requiring this special grade of insurance.
What is the difference in having an engineering insurance?
An engineering insurance offers adequate protection against loss or damage in respect of contract works, construction plant and equipment and or construction machinery, as well as against third party claims in respect of property damage or bodily injury arising in connection with the execution of a building contract. Such a policy is generally obtained for construction and installation projects. This category comprises multiple components, e.g. machinery breakdown/erection, boiler, material loss, exclusions, third-party liability.
Statistics
- Fire damage is responsible for more than 27% of the value of all engineering insurance losses.
- Defective products and faulty workmanship account for more than 36% of all engineering claims.
- Delayed start-up indemnity has increased from RM831,000 to RM2,078,500 per day over time as projects and operational values have grown larger.
Natural catastrophes, supply chain disruption, and regulatory changes are the top 3 risks in the engineering, construction, and real estate industry.
Case Study
Hidroituango hydroelectric dam, Columbia
The Hidroituango dam on the river Cauca was in the final stages of construction when a collapsed engine room led to heavy flooding which displaced thousands of residents, destroyed 2 bridges, 2 schools, and a health centre. The dam was estimated to cost USD2.8 billion (RM11.64 billion) and expected to generate 17% of the domestic electricity demand upon completion in late 2018. Due to the unfortunate turn of events, around 11,000 people had to work to restore the dam’s structure, drain the floodwaters, and finish the project.
Insurers paid out almost USD1.4 billion (RM5.82 billion) in compensation of restoration efforts at the Antioquia hydroelectric plant.
