Technical and Engineering Projects Insurance is important for many reasons. It offers protection from risks and responsibilities associated with the construction and supervision of projects. This includes coverage for damages or accidents that may occur to the project, third parties or technical personnel.
In particular, insurance can cover:
- Risks associated with study, supervision and consulting services.
- Accidents that may occur to third parties or workers during construction.
- Technological hazards of a man-made nature, such as incorrect design, poor workmanship or defective material.
More specifically, the 4 main pillars covered by civil engineering insurance are the following:
1. Third Party Liability
One of the main elements we protect during the execution of projects is Third Party Liability. This entails the provision of insurance for incidents that may be caused to third parties, causing physical injury or property damage. An example of Third Party Liability during technical work could be the following. Imagine that during the construction of a building, a passerby is injured by the fall of a tool from the top floor of the structure. Third Party Liability would cover the injured person’s medical expenses, as well as any compensation for bodily injury or property damage caused to his personal belongings.
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2. Cross Liability
Another key element of insurance is Cross Liability, where the parties insured are considered independent of each other. For example, if during the renovation of a house, a scaffolding collapses and damages the owner’s car, Cross Liability ensures that the owner can receive compensation, as he is considered a “third party” in relation to the insured project.
3. Contractors’ all risks
“Against All Risk” policies in Technical and Engineering Projects Insurance are insurance programs that provide extensive coverage for various risks that may occur during the execution of a project. These contracts cover accidental material damage and third party claims arising from bodily injury or property damage as a result of the execution of the project.
The peculiarity of these policies is that they provide coverage for almost all risks, except those explicitly excluded. This means that the insured can be sure that he will be compensated for any damage that does not belong to the exclusions of the policy.
Indicatively, “All Risk” policies may cover damages from:
- Fire
- Lightning
- Flood
- Aircraft crash
- Acts
- Civil unrest
- And much more.
It is important to note that these policies offer the most comprehensive form of coverage for the risks associated with the execution of any project.
4. Professional Civil Liability
In order to meet the needs of professionals involved in civil engineering projects, Professional Civil Liability contracts have been developed. Through these contracts, we provide protection to the client for any design error, omissions in meeting legal standards, inadequate supervision, as well as failure to obtain the necessary building permits, which may result in fines for the project owner.
Let’s look at an example to understand the value of an engineer’s Professional Civil Liability: An engineer, our client, undertook the preparation of a study for the construction of a large industrial building. Ten years later, a relatively small earthquake inexplicably caused severe damage to the plant, which was insured against seismic hazards. Examination of the situation revealed that the damage was due to errors in the engineer’s study. The insurance company compensated the customer and then demanded compensatory damages from the engineer.