What is engineering cover?
The term ‘Engineering Cover’ incorporates two types of cover:
Example: the fuel pump on your boiler fails and as a result several gallons of heating oil leaks onto the floor. You need to replace the carpet in the office and thoroughly clean the building.
Example: You have a range of electrical equipment in your building including control panels and fixed wiring. You need them to be regularly tested in order to comply with the Electricity at Work Act.
Who would typically purchase Engineering Cover?
Because of the vast array of equipment that these policies can cover, engineering cover is applicable to more industries than first imagined
But do I need Engineering Cover?
If you have equipment which falls under the following categories, yes, you will be legally required to have it inspected periodically:
|Lift Crane Plant:
||Includes fork lift and pallet trucks, passenger and goods lifts
||Includes air receivers and compressors, heating boilers
||Includes power presses, guillotines, injection/blow moulders
|Local Exhaust Ventilation:
||Includes spray booths, fume cupboards, shot blast cabinets
|Electrical & Mechanical:
||Includes control panels, alternators, refrigeration plant, gearboxes
What covers does the policy provide me?
Engineering cover will provide for regular inspection of the plant by qualified professionals who confirm it is fit for use.
More than simply a ‘would like to have’ insurance policy, engineering Cover insurance will allow companies to comply with the following Safety legislation:
- The Electricity at Work Regulations (EAW) 1989 (applies to electrical installations and equipment)
- The Provision and Use of Work Equipment Regulations (PUWER) 1998 (predominantly but not exclusively machine shop equipment)
- The Lifting Operations & Lifting Equipment Regulations (LOLER) 1998 (applies to lifts and lifting equipment)
- Control of Substances Hazardous to Health (COSHH) Regulations 2002 (as amended) (applies to local exhaust ventilation equipment)
- The Pressure Systems Safety Regulations (PSSR) 2000 (certain pressure systems containing steam, gases or liquids)
What does it cover me for?
- Explosion or collapse of boiler or pressure plant caused by steam or other fluid pressure
- Breakdown of mechanical or electrical plant.
- Damage to plant that requires immediate repair or replacement to enable normal working.
- Sudden and Unforeseen Damage such as Explosion, Collapse, and Breakdown
- Deterioration of refrigerated stock
- Lifted goods- Damage to property belonging to you or in your custody whilst it is being lifted by an item of Plant such as a forklift truck.
- Storage tank contents-Loss of contents of tank and associated clean up costs. This excludes damage caused by evaporation, seepage or normal trade loss.
- Contractors’ plant-Covers the insured’s own plant and equipment on an ‘All Risks Contents’ basis. Can also be extended to include cover for loss or damage caused to hired-in plant and continuing hire charges applicable to the plant if damaged.
What doesn't it cover me for?
These are some of the exclusions that apply to Engineering cover:
- Loss caused due to Corrosion and Erosion
- Consequential Loss (except Own Surrounding Property Damage)
- Perils covered by Contents or All Risks Contents cover
- Inadequate maintenance
- Known defects
- Product recall
- Plant undergoing testing or repair
- Wear and tear
Are there any types of equipment the policy can’t cover?
- Glass or non-metallic parts
- Bulbs, thermionic valves, electric heating elements, photo electric cells, transistor, cathode ray and x-ray tubes
- Track rails, wear plates, cutting edges, crushing, grinding or hammering surfaces, cutting shaping or drilling tool.
How much cover do I get?
The limits of cover are set by you and should be the replacement value of the insured items.
How can I check what items I need to cover?
We are able to provide you with a guide on which equipment types need compulsory inspection under the Health & Safety Regulations, the frequency of these inspections and associated costs.
For further information or advice please contact us.