Engineering & Energy Insurances
Engineering and energy insurance is a way to transfer risk and create peace of mind for investing, especially in the construction and implementation of  and infrastructure projects and energy projects (oil, gas and petrochemical) as well as by the time of exploiting projects whose construction period has ended. Engineering and energy insurance policies are designed in accordance with the structure and manner of engineering activities and meets universally recognized standards. Engineering and energy insurance can be classified into two Groups.

First Group:
Insurance policies that cover development, industrial, agricultural and infrastructure projects, especially oil, gas and petrochemical projects during construction, installation and execution of work covering all risks. The duration of this Group of engineering and energy insurances depends on the nature of the capital, the size of the work plan and project’s schedule, which usually takes several years. This insurance covers the project plan from the time the workshop is equipped to the temporary delivery of the work and the demobilization of the workshop, followed by the commissioning and maintenance period.

The second Group:

Includes insurance policies designed for the operation of factories, bridges, roads, subways, refineries, power plants, dams, airports, engineering structures, machinery and equipment for road construction, construction, agriculture and other machinery and equipment of contractors, failure of machinery, computers and electronic equipment, etc. are. The term of these insurance policies is annual.

A)      Construction period insurance policies

 1.   Contractors’ All Risk Insurance (C.A.R)

This insurance covers physical, sudden and unforeseen damages caused by accidents during the implementation of construction projects, infrastructure and construction operations of various structures such as: residential, office buildings, towers, factories, Silos, roads, railways, airports, dams, water supply and drainage projects, tunnels, bridges, water and sewage piping, water tanks, breakwaters, power plants and refineries, energy projects (oil, gas and petrochemicals) and the like.

Many factors including fire, lightning, explosion, flood, hurricane, earthquake, landslide, theft, negligence, improper workmanship, improper design, poor materials and .... causes accidents and damage to various engineering structures, which in addition to wasting capital, also endangers the peace of society.

In C.A.R. engineering insurances, in addition to covering damages incurred upon the project, damages resulting from the transportation of materials and equipment, waste collection, adjacent property, environmental pollution,  liability to third parties (personal and financial) and ... can also be insured. Coverage of this insurance starts from the beginning of the construction of the project and continues until the end of the construction period. After the temporary delivery of the work, the project is also covered during the maintenance period.

 2.   Erection All Risks insurance (EAR)

This insurance policy covers damages caused by sudden and unforeseen physical accidents that occur during the construction and installation of various construction and infrastructure projects, assembly of various machines and equipment, as well as the installation of any structure with a steel frame, in small and large industrial workshops, automotive, chemical, steel, food, wood and paper, leather and tile industries, agricultural industries, telecommunication systems, laboratory precision instruments, power plants, oil, gas and petrochemical as well as refineries, water supply and oil and gas transmission projects, as well as power transmission lines.

The risks covered by this insurance are similar to C.A.R. Also, in this type of insurance, the damages caused by the mistake in manufacturing the parts in the factory manufacturing machinery and equipment can be insured. Coverage of this insurance starts from the beginning of the installation operation, and will include the testing, commissioning and the maintenance period.

B)   Operation period insurance policies

 1.   Civil Engineering Completed Risks Insurance (CECR)

This insurance covers damages to all types of structures built and in operation, such as: roads, railways, airports, irrigation and drainage canals, bridges, tunnels, dams, breakwaters and piers, power plants, refineries, water and sewage pipelines, electricity, oil, gas and petrochemicals, as well as warehouses and mines.
CECR insurance is of the type of insurance with the named or specified risks and covers damages caused by floods, water floods, hurricanes, earthquakes, fires and explosions, cold, avalanches, freezing, sabotage, collisions of land, sea or air vehicles, volcanoes, underwater earthquake, subsidence, ground movement, lightning and wave collisions.

 2.   Non-profit insurance due to delays in project operation

The above-said insurance policy covers losses resulting from delays in the operation of the project.
If a sudden and unforeseen accident occurs during the construction work and the insured project is damaged in such a way that the execution period of the work is extended and its operation time is delayed, the insurer will compensate for the damages incurred upon the employer due to the delay in the operation of the project, within the terms of the insurance policy.
This insurance policy also predicts the time franchise with regard to the nature of the risk.

 3.   Stability and construction quality insurance

"Insurance of basic and hidden defects of the building"

This insurance policy insures damages caused by incorrect design, use of substandard materials or poor-quality materials, improper execution of work, to residential and office buildings during operation that result from the main structures of the building for ten years.

Coverage of this insurance begins after the certificate of construction completion and at the delivery time of residential and office units for their use as follows.

a)       Building structures including: foundation, skeleton, roof and concrete works for ten years.

b)      Facade of the building for 5 years.

c)       Mechanical and electrical equipment and facilities for three years.

Mass builders of housing and construction can also make good use of this insurance coverage in order to raise construction standards, as well as to provide more peace of mind for the people and to preserve national assets.

 4.   Contractor’s Plant & Machinery Insurance (C.P.M)

This insurance policy covers physical damage caused by external hazards to contracting and agricultural machinery and equipment such as: loaders, bulldozers, graders, sidebars, forklifts, combine harvesters, tractors, cranes, drilling rigs, welding machines, pumps, compressors, generators and the like, which are the tools of contractors.

 5.   Machinery Breakdown insurance (MB)

This insurance covers machinery and facilities that are installed and in operation. Workshops and factories in operation are among the items covered by machinery breakdown insurance. Machinery breakdown insurance insures unforeseen and sudden physical damages to all types of machines due to incorrect design, manufacturing defects, improper workmanship, lack of skill, carelessness, power fluctuations, physical explosion and centrifugal force.
Risks such as hurricanes, floods, earthquakes, and landslides can also be insured by paying an additional premium in this insurance.

 6.   Machinery Loss of Profit Insurance (MLOP)

This insurance complements the machinery breakdown insurance and if there are delays in the production of the factory due to sudden risks and damage to the machines, and will insure the loss due to the cessation of production, which includes current costs and employees' salaries which will be lost during the cessation period. It is noteworthy that the damage caused by non-production will usually be far greater than the physical damage to the machinery.

 7.   Deterioration of Stocks Insurance (DOS) in Refrigerators

Deterioration of stocks insurance is actually a supplement to machinery breakdown insurance coverage, which is usually purchased by the insurer along with the breakdown insurance. This type of insurance covers damage to all goods that can be stored in refrigerators, such as proteins, fruits, vegetables, dairy products, as well as chemicals and pharmaceuticals caused by machinery breakdown.
Deterioration of Stocks Insurance covers risks due to non-compliance with technical issues, mechanical or electrical failure of refrigeration equipment, refrigeration fluctuations, sudden and unforeseen leaks of refrigerants from the refrigeration circuit, power fluctuations, changes in the composition of the refrigeration air and in general, any failure in the refrigeration system.

 8.   Insurance of boilers and pressure vessels (BPV)

The said insurance is the first insurance policy in the field of engineering insurance offered in the insurance industry. This insurance policy covers damages resulting from the physical or chemical explosion of boilers and pressure vessels that damage themselves and the property adjacent to the insured, as well as personal and financial damages to third parties.

 9.   Electronic Equipment Insurance (E.E.I)

This insurance policy covers damages to all types of electronic equipment used in industrial workshops, industries, research and laboratory equipment, office supplies, alarm systems, engineering equipment, measuring equipment, control and fault-finding devices, cinema and filming equipment, material testing equipment, radio, television & telecommunication equipment, computers and computer systems, medical equipment and the like. Many hazards such as hazards from cleaning the device, checking the device while working, falling, collision of a foreign object, power fluctuations inside the device, theft, moving, overturning, fire, lightning, explosion, earthquake and storm and flood which threatens the type of equipment, could be covered by this insurance policy.

·   Three types of insurance coverage may be included in this policy:

·   Software coverage

·   Coverage of the cost of renting alternative devices

·   Coverage of hardware or sudden physical damage to the device

10.   Energy insurance (oil, gas and petrochemical):

Large and extensive projects (oil, gas and petrochemicals) for the extraction, exploration, drilling, refining, etc. of oil, gas and petrochemicals at sea and on land, whether they are under construction or installed or upon operation as energy projects are covered by this insurance policy. This insurance policy covers all coastal and offshore projects on land and at sea.
Energy insurance policies are issued within the framework of international standard conditions, which include a wide variety of coverages on demand, along with test and commissioning and maintenance periods.