Securing your Projects & Future Profits

What Is Not Covered under Engineering Insurance?

• War or Invasion: Damage or loss resulting from acts of war, invasion, or civil unrest is generally excluded. Insurance usually does not cover damage from military actions, including armed conflict or foreign invasions.
• Deductibles - Contributed by the Insured: This refers to the amount the insured party must pay out-of-pocket before the insurance coverage kicks in. The deductible is subtracted from any claims made. It's not covered by the policy.
• Radioactive Contamination due to Nuclear Reactions: Any damage or loss resulting from nuclear incidents, including radioactive contamination, is excluded. This encompasses radiation from nuclear reactions, accidents at nuclear facilities, or nuclear fallout.
• Willful Misconduct, Such as Planned Negligence: This excludes coverage for losses caused by deliberate actions, such as planned misconduct, fraud, or gross negligence. Insurance policies do not cover intentional acts that lead to damage or loss.
• Poor Workmanship and Subpar Quality of Material: Losses caused by faulty or substandard workmanship, poor construction practices, or the use of low-quality materials are generally excluded. The policy is not responsible for compensating damage arising from these issues.
• Discontinuation of Work: If work is stopped or suspended voluntarily or due to other non-insured reasons (such as labor disputes or business decisions), any resulting damage is typically not covered. The insurance does not cover losses from halted or abandoned projects.
• Deterioration Caused by Oxidation and Wear and Tear: Deterioration due to normal aging processes, wear and tear (such as rust, corrosion, or decay), and other forms of natural degradation over time are excluded from coverage. Insurance is designed for unexpected or accidental damage, not routine wear.
• Damage to Glass: Glass breakage is often excluded from engineering insurance unless specifically covered as a separate peril. Standard policies may not cover damage to glass, windows, or mirrors unless explicitly stated.
• Shortage Caused by Disappearance or Other Factors: Losses due to inventory shortages, mysterious disappearances, or other unexplainable reasons (like theft without evidence of force) are generally excluded. Only theft with clear signs of forced entry or criminal activity may be covered.
• Any Involved Party’s Failure to Meet Their Contractual Obligation: If any party involved in the project fails to meet their contractual obligations, such as non-performance or breach of contract, the insurance will not cover the resulting losses or damages.
• Terrorism: Loss or damage resulting from acts of terrorism (deliberate attacks, bombings, sabotage, etc.) is typically excluded unless the policy specifically includes terrorism coverage or is a special policy with a higher premium.
• Loss of Drawings, Files, or Financial Instruments (like Cash, Cheques, etc.): Losses or damage to intangible assets such as drawings, files, documents, and financial instruments like cash or cheques are usually excluded. Physical assets are covered, but documents or digital files might not be.
• Defective Design: Damage resulting from design flaws, whether in structural, mechanical, or electrical systems, is generally excluded. The liability for poor or faulty designs typically lies with the designer or engineer, not the insurance provider.