The following is a general description of the features and benefits typically available to policyholders. It is NOT intended to be a complete summary of the policy cover available as such cover will vary between Insurers.
With each quotation provided by Aldium a Key Facts Summary of Cover will be supplied for the particular Insurer recommended.
Insurers offer a range of both engineering inspection and engineering insurance products including:
Inspection Services
At the end of this Summary is a list of some of the current legislation and inspection services may well be needed in order to comply with such legislation.
Inspection services are available for:
- Boiler and Pressure
- Lifting and Handling
- Local Exhaust Ventilation
- Power Presses
- Electrical Installations
Machinery Damage – Sudden and Unforeseen Damage Cover
The policyholder is indemnified following loss of or damage by:
- Breakdown
- Explosion/collapse
- Accidental damage
to machinery described in the policy schedule from a sudden and unforeseen cause whilst at the situation specified in the policy schedule.
Cover can be limited to one or more of the three described above.
Extensions
- Additional machinery of a similar type subsequently installed at the situation specified in the policy schedule.
- Temporary removal for repair, service overhaul or maintenance.
- Lifted Goods – accidental damage to property belonging to the policyholder whilst being handled by insured machinery.
- Fragmentation – accidental damage to the policyholder’s surrounding property following fragmentation of any part of the insured machinery.
- Own surrounding property - damage to the policyholder’s property directly resulting from damage to insured machinery or by lifting of insured machinery.
- Debris removal.
- Expediting costs to speed up repair or replacement.
- Costs of exceptional measures to prevent loss.
- Engineers fees during repair/testing following a loss.
Exclusions
- The following perils:
- Fire
- Lightning
- Explosion (other than as defined in the policy)
- Earthquake
- Flood
- Storm
- Escape of water
- Sprinkler leakage
- Aircraft and articles dropped from aircraft
- Theft or attempted theft
This exclusion does not apply to machinery in transit for repair, service, overhaul or maintenance.
- Erection risk – during installation, erection, dismantling, re-siting.
- Consequential loss.
- Excluded parts – safety or protective devices called into operation, burst tyres, batteries.
- Computer virus.
- Intentional act or wilful omission by the policyholder.
Consequential Loss
Cover to protect the profit or revenue of the business following breakdown or sudden and unforeseen damage.
Computer
Cover available for:
1. Hardware – Computer equipment and portable computer equipment (if selected) described in the policy schedule.
Extensions
- Waiver of Subrogation Rights – rights of recovery against policyholder’s parent company, subsidiary company, policyholder’s authorised user.
- Virus Seek and Destroy Costs – cost incurred in locating and removing a detected virus or similar.
- Automatic Cover – for newly acquired hardware at premises shown in the policy schedule and computer equipment at any premises not necessarily advised.
- Waste Electrical and Electronic Equipment Directive – additional costs incurred to comply with this directive.
- Temporary Removal of computer equipment – not portable computer equipment.
- Portable Computer Equipment – if specified, cover is for temporary removal and transit subject to limits and manner of transit
- Data Carrying Materials – whilst in transit.
- Gas Flooding Systems – cost incurred in recharging
- Incompatibility of Records – if Reinstatement of Data is insured and an insured accident occurs, Insurers will pay either for the cost of modifying hardware or replacing data carrying materials in order to achieve compatibility
Exclusions
- Consequential Loss – except as otherwise provided for.
- Excess as per policy.
- Bespoke software – unless a support agreement exists with the supplier.
- Operation of Protective Devices – loss arising from their correct operation.
- Parts Requiring Periodic Renewal.
- Guarantee or Maintenance Agreement – loss recoverable by virtue of this.
- Hire or Loan.
2. Reinstatement of Data – cost of reinstating data lost or damaged as a result of an insured accident.
Extensions
- Waiver of Subrogation Rights – rights of recovery against policyholder’s parent company, subsidiary company, policyholder’s authorised user.
- Virus Seek and Destroy Costs – cost incurred in locating and removing a detected virus or similar.
- Incompatibility of Records – if Reinstatement of Data is insured and an insured accident occurs, Insurers will pay either for the cost of modifying hardware or replacing data carrying materials in order to achieve compatibility
- Research and Development Costs – cost of re-writing data processing research or development projects to the stage reached immediately prior to an accident.
Exclusions
- Consequential Loss – except as otherwise provided for.
- Excess as per policy.
- Bespoke software – unless a support agreement exists with the supplier.
- Operation of Protective Devices – loss arising from their correct operation.
- Parts Requiring Periodic Renewal.
- Losses discovered later than 6 months after the loss was initiated.
- Losses more specifically insured under Increased Costs of Working.
- Losses to software insured under Hardware.
3. Increased Costs of Working – cover for necessary and reasonably incurred increased costs in minimising or preventing
interruption with computer operations arising out of an insured accident.
Extensions
- Waiver of Subrogation Rights – rights of recovery against policyholder’s parent company, subsidiary company, policyholder’s authorised user.
- Virus Seek and Destroy Costs – cost incurred in locating and removing a detected virus or similar.
- Auditors Fees – reasonable fees payable to auditors for producing and certifying any particulars.
- Additional Rental Charge – additional lease or hire fees following the replacement of an existing lease or hire agreement by a similar agreement following an insured accident to hardware.
Exclusions
- Consequential Loss – except as otherwise provided for.
- Excess as per policy.
- Bespoke software – unless a support agreement exists with the supplier.
- Operation of Protective Devices – loss arising from their correct operation.
- Parts Requiring Periodic Renewal.
- Increased Excess – Non Maintained Hardware – increased costs incurred during the first 48 hours when there is no maintenance agreement in force
- Deliberate Act of Supply Authority – loss arising from failure of electricity supply or communications network.
4. Virus Hacking and Denial Of Service Attack – cover for direct physical loss to hardware, costs incurred in
reinstatement of data and increased costs of working resulting from virus, hacking, denial of service attack.
Extensions
- Waiver of Subrogation Rights – rights of recovery against policyholder’s parent company, subsidiary company, policyholder’s authorised user.
- Virus Seek and Destroy Costs – cost incurred in locating and removing a detected virus or similar.
Exclusions
- Consequential Loss – except as otherwise provided for.
- Excess as per policy.
- Bespoke software – unless a support agreement exists with the supplier.
- Operation of Protective Devices – loss arising from their correct operation.
- Parts Requiring Periodic Renewal.
Contractors All Risks
Cover for physical loss or damage to:
1. Contract Works – including works, temporary works and materials on or adjacent to the site of any contract including
whilst in transit.
Extensions
- Additional Interests – the interest of any employer, principal contractor or sub-contractor.
- Plans and Documents – costs incurred in re-writing or reproducing plans/drawings.
- Maintenance – physical loss or damage to permanent works during the maintenance period or defects liability period.
- Show Houses and Contents.
- Dismantling or Demolition – as well as debris removal, also cover for dismantling, demolition, shoring up, clearing drains, dewatering.
- Off Site Storage – materials and goods temporarily stored elsewhere.
- Architects Surveyors and Consulting Engineers Fees.
- Local Authorities Clause – additional costs incurred to comply with EU legislation or local authority bye-laws.
Exclusions
- Penalties or Consequential Losses.
- Unexplained Losses.
- Road Vehicles.
- Money or Guarantees of Money.
- Breakdown.
- Cessation of Works – loss or damage where work ceases for more than 30 days.
- Loss or damage underground or underwater.
- Completed Pending Sale.
- Completed Taken Into Use.
- Existing Structures.
- Defective Property.
- Non-Ferrous Metals – theft loss.
- Loss Or Damage AT Insured’s Own Premises.
2. Owned Plant – cover for mechanical, electrical or manually powered implements, materials, containment,
handling equipment, scaffolding, ladders etc owned by the policyholder.
Extensions
- Immobilised Plant – costs incurred in recovery of unintentionally immobilised plant or equipment.
- Contents of Site Huts – excluding computers.
Exclusions
- Penalties or Consequential Losses.
- Unexplained Losses.
- Road Vehicles.
- Money or Guarantees of Money.
- Breakdown.
- Cessation of Works – loss or damage where work ceases for more than 30 days.
- Loss or damage underground or underwater.
- Excluded Parts – brickwork, masonry, tyres, tools, moulds, dies, patterns, flexible pipes, cables, safety devices.
3. Hired In Plant – legal liability under the terms of the hire agreement for physical loss or damage or continuing
hire charges for hired in plant, including whilst in transit.
Extensions
- Immobilised Plant – costs incurred in recovery of unintentionally immobilised plant or equipment.
- Contents of Site Huts – excluding computers.
Exclusions
- Penalties or Consequential Losses.
- Unexplained Losses.
- Road Vehicles.
- Money or Guarantees of Money.
- Breakdown.
- Cessation of Works – loss or damage where work ceases for more than 30 days.
- Loss or damage underground or underwater.
- Excluded Parts – brickwork, masonry, tyres, tools, moulds, dies, patterns, flexible pipes, cables, safety devices.
4. Employees Tools and Personal Effects – whilst on or adjacent to the site of any contract.
Exclusions
- Articles of jewellery.
Deterioration of Stock
Cover for loss to stock in a cold chamber by deterioration or putrefaction as a result of a rise or fall in temperature or escaping refrigerant fumes.
Extensions
- Disposal of Damaged Stock.
- Cleaning and Disinfection.
Exclusions
- Loss or damage to the cold chamber machinery.
- Excluded perils – loss or damage at the premises due to fire, lightning, explosion, earthquake, flood, storm, escape of water, sprinkler leakage, aircraft, theft or attempted theft.
- Consequential loss.
- Deliberate Act of the Supply Authority.
General Conditions
- Misrepresentation – the policy shall be voidable in the event of misrepresentation, misdescription or non-disclosure of a material fact.
- Fraud – the policy will be voidable if fraudulent means are used to obtain benefit.
- Claims Notification and Requirements – requirements of the policyholder for notification and presentation of claim details and minimisation of loss.
- Claims Settlement – option to repair, replace, reinstate or pay money
- Other Insurance.
- Average – the effect on a claim settlement in the event of underinsurance.
- Precautions.
- Access – Insurers reasonable right of access.
- Alterations in Risk – types of alterations which may result in the policy becoming void.
- Subrogation – the right of the insurer, in the name of the policyholder, to seek recovery of any outlay from a responsible third party.
- Cancellation.
- Arbitration – agreement to disputes over the quantum of loss being referred to arbitrators.
General Exclusions
- Intentional Acts.
- Wear and Tear.
- Application of Tools – loss resulting from the direct application of tools during repair, maintenance, inspection or overhaul.
- Guarantees of Performance – such as penalties for delay.
- War Risks.
- Terrorism.
- Riots, Strikes and Civil Commotion.
- Nuclear Risks.
- Sonic Bangs.
- Airborne and Waterborne Craft.
- Electronic Risks – loss arising from computer virus, hacking etc. (This cover is available if requested).
- Pollution or Contamination.
- Excess – the amount(s) specified in the policy schedule.
- Date Recognition Related Losses – any loss because a computer fails to recognise any date as its true calendar date.
Wherever Extensions and Exclusions are recorded above, it should be noted that they do not represent a complete list of all policy extensions/exclusions and neither do all Insurers provide/impose all of the above. They are intended to be representative of the most significant extensions/exclusions which usually appear. You should also read the General Conditions and General Exclusions Sections of any relevant policy.
Legislation
A guide to Legislation affecting the UK and Irish Engineering Market.
- H&SAW – Health & Safety at Work etc. Act 1974
- MANH&S – The Management of Health and Safety at Work Regulations 1999
- WORKPLACE – The Workplace (Health, Safety and Welfare) Regulations 1992
- LOLER – The Lifting Operations & Lifting Equipment Regulations 1998
- PUWER – The Provision & Use of Work Equipment Regulations 1998
- EAWR – The Electricity At Work Regulations 1989
- FOOD SAFETY – The Food Safety (General Food Hygiene) Regulations 1995
- COSHH – Control of Substances Hazardous to Health 2004
- PSSR – The Pressure Systems Safety Regulations 2000
- PER – The Pressure Equipment Regulations 1999
- NAW – The Noise Regulations 2005
- FSO – The Regulatory Reform (Fire Safety) Order 2005
- PPEAW – The Personal Protective Equipment at Work Regulations 1992
- MHOR – The Manual Handling Operations Regulations 1992
- CLAWR – The Control of Lead at Work Regulations 2002
- HSDSR – The Health and Safety (Display Screen Equipment) Regulations 1992
- SMR – The Supply of Machinery (Safety) Regulations 1992
- RIDDOR – The Reporting of Injuries, Diseases and Dangerous Occurrences Regulations 1995
- HSSSS – The Health and Safety (Safety Signs and Signals) Regulations 1996
- ASBESTOS – The Control of Asbestos Regulations 2006
- DSEAR – Dangerous Substances & Explosive Atmospheres Regulations 2002
- IRELAND – Irish Health & Safety Law