Machinery is essential for many modern
businesses, as well as individuals, in the production of goods and services.
However, machinery can be extremely costly and the possession or operation
of such plants bring the possibilities of breakdowns and the potential liability
for injury or damage to others through for example, boilers or pressure vessels
exploding or a piece of machinery breakdown. It is such sudden and unexpected
financial losses that General Insurance Botswana’s engineering policies
are designed to cover.
The main classes of engineering insurances are briefly described as follows:-
Electronic Equipment Insurance
The term electronic equipment comprises, in the context of this insurance,
all electrical and electronic systems.
Electronic Equipment Insurance protects the owner as the operator, the lessor,
or the maintainer, as well as the hirer. This insurance is ‘accident’
insurance on an all-risk basis covering sudden unforeseen
losses which physically affect the subject matter insured. Cover is provided
on first-loss basis for both the material value of the external data media used
in computing facilities and the cost of reprocessing and restoring lost information.
In the event of a breakdown, replacement computing capacity is hired, then the
increased cost of working insurance applies. It covers such expenses as hire
charge, transport charges for data media and personnel, expenses for accommodation
away from base, night work on public holidays and the like.
Machinery Breakdown Insurance
Machinery Breakdown Insurance covers any damage whether the equipment is at
work or at rest and also when dismantled for the purpose of inspection, overhauling
or shifting to another position.
Further, damage to electrical machinery, due to fire originating within itself
(which is excluded in fire policies) is covered under this policy.
Contractors All Risks (CAR) Insurance
This policy offers comprehensive
protection in respect of contracts works for loss of
or damage to construction plant and equipment as well as construction machinery.
Contractor’s All Risks insurance also covers third-party claims in respect
of property damage or bodily injury arising in connection with the execution
of building project.
CAR insurance provides an all-risk cover. Every hazard is covered which is
not specifically excluded. This means that almost any sudden and unforeseen
loss or damage occurring to the property insured on the site is covered.
Erection All Risks (EAR) Insurance
This branch of engineering insurance offers comprehensive protection against
all the risks involved in the erection of machinery, plant and steel structures
of any kind, as well as third party claims in respect of property damage or
bodily injury arising in connection with the execution of an erection project.
EAR insurance provides very wide cover. Almost any sudden and unforeseen loss
or damage occurring to the property insured on the erection site is covered.
