Despite regular maintenance, machinery is human-made and subject to failure at any time. Even though it
facilitates a lot of production, a malfunction could have negative effects on the business. Accidental
equipment failure could result in staff members suffering deadly or non-fatal injuries, financial loss
from production stops, and damage to the company’s reputation. Having engineering insurance will allow you
to reduce or pay for the damages brought on by equipment failure.
Engineering insurance is a kind of general insurance that covers any damages brought on by mechanical failure. It is taken to protect against all sorts of unforeseen or accidental risks causing damages due to earthquake, fire, flood, cyclone, theft burglary, human error, negligence, lack of skill, malicious acts, bad workmanship involved in civil constructions, failure to install machinery equipment, etc. The policy drawn during the construction or establishing stage is called ‘one-time policy.’