What is Engineering Insurance?
You’ve probably come across engineering insurance at some point if you’ve ever had experience running a software or electrical engineering business. Chances are you’ve also dealt with engineering insurance if you’ve done freelance engineering in any field. In almost all cases, it is compulsory by law that engineering insurance be in place for any relevant contracts you tender.
This article will inspect what exactly is covered in most insurance for engineers and what makes it so crucial that you get the right insurance based on precisely what your professional field within engineering is.
What are the Different Types of Engineering insurance?
There are many differences between regular business insurance and the insurance that engineers are compelled to use. Buying general business insurance will be unsuitable in almost all cases for engineering work since the profession entails particular risks. So the calculations, considerations and requirements are likely to be very different to what most other jobs would entail.
If you ever take out average business insurance rather than engineering insurance, whether deliberately or by mistake, you put yourself at a high risk of ending up completely unprotected in the event of an unfortunate event or accident. This is because most claims will be rejected in such circumstances, and so you’ll be working without being fully protected if protected at all. It can even prevent projects and contracts that are otherwise ready to go from getting started. It highly increases the risks and may be seen as an unprofessional mistake by someone else involved with the work.
When is Engineering Insurance Helpful?
There are all kinds of situations in engineering where you may need engineering insurance if something goes wrong. This includes designing systems, working with computer hardware and software and most obviously, constructing and operating machinery.
Whilst engineering insurance in its traditional format was primarily for operating large machinery and industrial plants that were essential for construction and manufacturing industries, things have moved on a lot in the world of engineering, of course. Not every engineer now is necessarily someone who comes into a manufacturing plant to inspect and repair giant machines. So modern engineering insurance has to cover a lot more than that.
At the beginning of the industrial age, such work was hazardous, and it wasn’t at all unheard of for people to lose digits, limbs, or even their lives. Of course, the introduction of all this industrial change and the new machinery that came along with it in the Victorian era welcomed many for the mass production of many goods. Still, many people working in these conditions were quite literally risking their lives for usually small pay.
This was made to seem even less bearable because the factory owners would generally be earning many times more of the earnings whilst safely sitting in offices away from the danger of the machines. Bringing in engineers and inspectors became essential for ensuring that machines were as safe as possible, or at least not death traps. They’d be an essential part of accident prevention by identifying what parts of machines were the least safe and ensuring there weren’t any excessive amounts of wear and tear that could lead to a sudden breakdown, possibly endangering people.
How Was it Changed?
This insurance is now much wider-reaching. In the modern-day, it covers a much more diverse equipment and machinery, including computers, mainframes, software systems, turbines, process machinery, boilers, generators, transformers, and power plants.
For the personal machinery and electrical equipment used in an engineer’s work, things are not individually itemised in most cases. Specialist equipment hired for specific jobs or contracts that you’re hired for should also come under your insurance’s cover.
There are a lot of situations where the cover for such personal equipment will come in useful. You may suddenly find yourself in a challenging position if there’s unforeseen damage caused to your tools, mainly if it’s caused by extraneous accidental damage. Sometimes this equipment breaks down by itself, although most insurers will ask for you to provide the age of your equipment before insuring it and will not provide replacements ‘as new’ unless they aren’t too old. Theft and loss is also always a possibility that it’s essential to be prepared for.
In many of the same ways that you want to protect your home and the personal things in it with home insurance, it’s essential to ensure the crucial things you use at work, which can be just as big a part of your life. Whilst engineering insurance may seem niche. It’s non-negotiable for those in the field of work.
Find out more about the Importance of insurance here.
Other useful links about business insurance:
Arts & Entertainment Insurance
Business Building Insurance
Architect & Surveyor Insurance
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