Construction and erection works often call for the use of heavy, specialised machinery such as tunnel boring machines, earthmoving equipment, cranes, pumps, air compressors etc.
It is possible to cover such plant and equipment by way of an appropriate endorsement under Contractors All Risk (CAR), Erection all Risk (EAR) or Engineering Project Insurance Cover (EPIC) policies. However, specific items of plant are usually only on one construction/erection site until the particular job for which they are designed for is completed. Obviously, such jobs do not last for the whole construction/erection period and the plant is moved on to the next site as soon as its job is finished. Therefore, in most cases, cover granted by means of an endorsement to the Contractors All Risk (CAR), Erection all Risk (EAR) or Engineering Project Insurance Cover (EPIC) policy would not be suitable, because such policies are limited to loss or damage caused at one particular construction/erection site only. It is preferable to issue an annually renewable Contractors’ Plant and Equipment policy because it caters for plant and equipment used at different locations.
Cover is on an “all risks” basis, and is basically for unforeseen and accidental physical loss or damage due to external causes.
• Main Hazards
The main hazards are: fortuitous working accidents, fire, burglary, theft, faulty operation, natural perils such as earthquake, storm and flood, collision and overturning.