Engineering Insurance 工程保險

Boiler Explosion Insurance 鍋爐爆炸保險

Boiler Explosion Insurance, also called Boiler and Pressure Vessel Insurance, addresses damage caused by a physical explosion or collapse of a boiler or pressure vessel during ordinary working. A physical explosion must be distinguished from a chemical explosion. Cover can be arranged separately or added to a machinery breakdown or fire policy.

The usual protection has three elements: damage to the insured boiler or pressure vessel, damage to the insured's other property, and liability for damage to third party property or death or bodily injury to third parties, together with related costs and expenses.

Usual exclusions include risks normally covered by fire and extra perils insurance, war, nuclear risks, terrorism, the insured's wilful acts or wilful neglect, and wear and tear. Damage to the boiler or pressure vessel itself caused by an external cause is also excluded from the own-damage cover.

Each boiler or pressure vessel normally has its own sum insured, while limits of indemnity apply to other property damage and third party liability. The average condition for underinsurance applies separately to each item; sums insured cannot be pooled to offset underinsurance of one item.

Machinery Breakdown Insurance 機器損壞保險

Machinery Breakdown Insurance provides “all risks” protection against unforeseen and sudden physical loss of or damage to erected plant, machinery, equipment and computers. The equipment may be operating or at rest; cover is not restricted to machines that are running.

A typical commercial property policy does not cover damage caused by electrical arcing or mechanical breakdown, so machinery breakdown insurance can fill these gaps. It supplements standard fire and extra perils insurance and normally excludes perils insurable under that cover, together with war, nuclear risks and terrorism.

Normal deterioration through use, pre-existing defects, overload experiments and abnormal operating conditions are normally excluded. A policy deductible also applies and may be substantial, so even an insured event does not necessarily produce full reimbursement.

Some policies combine inspection by qualified people with material damage cover, and some also provide business interruption cover. Inspection services and business interruption protection depend on the arrangement and must not be assumed to form part of every machinery breakdown policy.

Contractors’ “All Risks” Insurance 建築工程「全險」保險

Contractors’ “All Risks” Insurance principally addresses risks in construction work, such as building projects. Hong Kong projects often involve owners, contractors and other participants. One policy covering the whole project, with participants insured on a named or unnamed basis, helps reduce gaps and save overall premiums.

The policy normally has two sections. Section I covers specified property on an “all risks” basis, usually including contract works and materials supplied by the Principal. Construction plant, equipment and machinery can be added instead of arranging separate plant and machinery insurance; debris clearance costs may also be included.

Section II covers liability for third party injury or property damage arising from the construction work. It excludes damage to the insured's own property, such as works insured under Section I. Liability arising from weakening or removal of support is normally excluded but can be added by endorsement for an extra premium.

Alongside the usual “all risks” exclusions, Section I excludes faulty design, defective materials, bad workmanship and losses discovered only during an inventory. Section I deductibles normally vary with the peril and property concerned; a deductible is also customary for third party property damage under Section II.

Erection “All Risks” Insurance 安裝工程「全險」保險

Erection “All Risks” Insurance is intended for projects involving machinery, plant or steel structures. The nature of the work guides the choice: Contractors’ “All Risks” Insurance principally concerns actual construction, such as buildings, whereas Erection “All Risks” Insurance focuses on erecting and installing machinery, plant or steel structures.

Loss of or damage to insured property during erection, installation, storage, testing or commissioning can fall within the cover. Protection therefore does not have to wait until normal operation begins, distinguishing it from machinery breakdown cover for erected equipment operating or at rest.

Its structure and wording closely follow Contractors’ “All Risks” Insurance, and “all risks” protection remains subject to policy terms and exclusions. Third party liability cover is available as an addition and must not be assumed to be included automatically from the policy's name.