Fidelity United Engineering Insurance

Engineering insurance is important for businesses involved in construction or engineering projects. It helps protect them against risks and unexpected events that could cause financial loss. 

 

In the UAE, many companies offer this type of insurance, and one of them is Fidelity United. Fidelity United stands out as one of the oldest and most reputed insurance companies in the region, known for its integrity, good business ethics, transparency, and high-quality service standards.

 

What is Fidelity United Engineering Insurance?

Fidelity United engineering insurance is important for businesses engaged in construction or engineering projects, as well as those operating various machinery and equipment within production units. It provides coverage against the myriad risks these projects and operations face, covering not just ongoing construction or installation projects but also the machinery and equipment used during operations.

Types of Fidelity United Engineering Insurance:

Given below are the types of coverage that Fidelity United engineering insurance offers – 

• Erection All Risks (EAR): This insurance is designed for the erection of plant, machinery, equipment, and structures, covering risks from installation to commissioning. It includes coverage for loss, damage, and third-party liability claims related to property damage or bodily injury.
• Contractor’s Plant and Machinery (CPM): Tailored for construction plants and machinery, this policy covers accidental physical loss or damage to equipment at project sites, excluding internal breakdowns. It's applicable whether the machinery is in operation, at rest, or being relocated within the site after commissioning.
• Electronic Equipment Insurance (EEI): EEI provides protection against sudden and unforeseen physical damage to electronic equipment, including computers and peripherals. Coverage extends to a wide range of risks, including mechanical damage and theft.
• Machinery Breakdown (MBD): This insurance covers unexpected physical loss or damage to machines, including during maintenance activities. It's crucial for businesses reliant on continuous machinery operation for quick repairs or replacements.
• Machinery Loss of Profits (MLOP): MLOP covers the loss of gross profits due to business interruption caused by machinery breakdown. This policy helps mitigate the financial impact of unexpected machinery failures.
• Deterioration of Stock (DOS): DOS insurance protects against the deterioration of goods in cold storage resulting from refrigeration machinery breakdown. It's often linked with machinery breakdown insurance for comprehensive coverage.
• Boiler and Pressure Vessel (BPV): This policy covers the liability from the explosion or collapse of boilers or pressure vessels, and provides protection against significant risk in industrial operations.
• Comprehensive Machinery (CMI): Offering broad protection, CMI covers property damage and loss of profits across an entire plant and machinery operation. It's designed for facilities where engineering risks are a primary concern.

 

Top Features of Fidelity United Engineering Insurance

Some of the top features of Fidelity United engineering insurance are listed below:

• Customisable Coverage: There are a wide range of options to precisely fit the specific needs of various projects and industries.
• Cost-Effective Solutions: The product has been engineered to deliver competitively priced premiums across all insurance products and tries to balance cost with coverage.
• Expert Risk Management: A professional team specialises in assessing and mitigating risks, providing strategic advice and solutions.
• Dedicated Support Team: Clients have access to knowledgeable support for claims and inquiries.

 

Inclusions of Fidelity United Engineering Insurance

Let’s take a look at the inclusions that the Fidelity United engineering insurance products offer:

1. Erection All Risks (EAR):

• There is wide-ranging protection against myriad perils that can occur during the erection of machinery, plant and steel structures. This includes risks from installation and testing phases to the final commissioning of the project.
• A material damage section is included, which covers the loss, damage, or destruction of insured items due to any cause not specifically excluded by the policy. 
• Coverage for legal liability to third parties. This includes compensation for accidental property damage or for bodily injuries (both fatal and non-fatal) caused to third parties as a result of the erection works. It also covers legal costs that may be incurred in defending against such claims, subject to policy limits and conditions.
• The insurance coverage begins as soon as work starts or after the items listed in the policy schedule are unloaded at the site. Coverage continues until the project is completed and the structure is either taken over or put into service. Importantly, the policy can be extended to cover a maintenance period.
• EAR insurance can include provisions for losses or damages that occur during the maintenance period as defined in the contract. This is divided into two categories:

• Maintenance Visits Cover: This limits the insurer's liability to losses or damages directly caused by the insured during maintenance operations undertaken to fulfil contractual obligations.
• Extended Maintenance Cover: One can get wider protection due to coverage of losses or damages that occur during the maintenance period but are a result of actions taken during the construction phase.

2. Contractor’s Plant and Machinery (CPM):

• It provides coverage for accidental physical loss or damage to construction equipment, excluding internal breakdowns.
• It is applicable to equipment at work, at rest, or during phases of dismantling, re-erection, or shifting within the project site after successful commissioning.
• There is protection against a variety of risks including work accidents, collision, overturning, fire, theft, burglary, and natural disasters like earthquakes and floods.
• Assurance of replacement cost coverage, factoring in the value of the new item plus customs duties and transportation costs.
• Coverage extends to a wide range of equipment such as concrete mixers and pumps, road rollers, cranes, vibrators, excavators, and bulldozers.

3. Electronic Equipment Insurance (EEI):

• Material Damage Cover: This type of coverage insures against accidental damage on an all-risks basis, covering repairs or replacements needed due to unexpected physical loss.
• External Data Media Cover: Coverage is also provided for the material value of external data media and the costs associated with reprocessing and restoring lost information, on a first-loss basis.

4. Machinery Breakdown (MBD):

• MBD covers unexpected physical loss or damage to the insured's machines, whether they are in operation, at rest, during cleaning, inspection, overhauling, or being moved within the premises.
• It includes electrical equipment such as alternators and generators, as well as mechanical plants like engines, turbines, and pumps.
• Insured must periodically review and update the sum insured to reflect the machinery's new replacement value, including installation costs, customs dues, freight charges, repair costs, and specialist employment expenses.
• One can avail protection against damages caused by electrical issues, including short circuits and insulation failures.
• MBD coverage extends to damages resulting from faulty design, materials, erection or construction errors.
• It includes damages caused by faulty operation, lack of skill, negligence, or malicious acts by individuals.
• Protection is provided against damages due to machines tearing apart under centrifugal forces.
• There is also coverage for the failure of machinery connected to or protective devices of the insured machinery.
• MBD protects against damages from falling impacts, collisions, or the entry of foreign objects causing obstruction.

5. Machinery Loss of Profits (MLOP):

• It compensates for the actual loss of gross profits due to business interruptions caused by sudden and unforeseen damage or breakdown of plant and machinery.
• It covers the ongoing business expenses, including standing and fixed costs, that continue to accrue even when the business operations are temporarily halted due to machinery breakdown.
• The coverage includes the increased cost of working. It means that it reimburses the additional expenses necessarily and reasonably incurred to avoid a reduction in turnover. This can include costs related to temporary replacements, expedited shipping for parts, or overtime labour to catch up on delayed production.
• The indemnity period, during which the insurance will compensate for losses, usually ranges from 3 to 12 months. 

6. Deterioration of Stock (DOS):

• It covers the damage to goods caused by either a rise or fall in cooling temperatures within cold storage facilities. 
• The policy also extends coverage to include the unforeseen and sudden leakage or escape of refrigerants into the cold storage areas. Such incidents can lead to significant spoilage of goods due to contamination or an inability to maintain required temperature levels.
• It encompasses losses resulting from the under-controlled storage conditions or incorrect composition of the atmosphere within the storage facility. This could involve issues with humidity or gas levels that lead to the deterioration of stored products.
• The coverage can be extended to include spoilage due to the failure of the public power supply, assuming that the arrangements for public and backup power supplies are deemed satisfactory. 

7. Boiler and Pressure Vessel (BPV):

• BPV insurance covers damages to the insured's boiler and/or pressure plant resulting from explosions or collapses, excluding damages caused by fire. 
• There is indemnification provided for legal liabilities arising from bodily injuries, both fatal and non-fatal, to individuals caused by the explosion or collapse of the insured equipment. This aspect of the coverage is essential for protecting the insured from the significant costs associated with medical treatments, compensation for pain and suffering, or potential legal fees.
• In addition to bodily injury, BPV covers the insured's legal liability for damage to third-party property resulting from an insured event. This includes the costs to repair or replace third-party property damaged by the explosion or collapse of a boiler or pressure vessel.

8. Comprehensive Machinery (CMI):

• CMI provides extensive coverage against any unforeseen and sudden physical loss or damage to the entire plant and machinery setup. This includes breakdowns, operational failures, and accidental damage that impacts the functionality and integrity of the insured assets.
• The first section of CMI encapsulates the traditional machinery insurance scope, offering protection for plant and machinery against physical loss or damage. It goes a step further by also covering additional property elements integral to the plant's operations. 
• The second section of CMI covers business interruption. This includes compensation for lost gross profit and the increased cost of working that arises when business activities are disrupted or interfered with due to damage indemnifiable under Section I. 

Read: Fidelity United Liability Insurance- Features, Benefits

 

Claim Process of Fidelity United Engineering Insurance

Initiating a claim with Fidelity United for engineering insurance is streamlined and efficient. The first step in the claim process is to promptly intimate the insurer about the incident. This initial notification is crucial for a swift claim handling procedure. Following this, Fidelity United’s professionally qualified claims team takes over, guiding policyholders through each step with expertise and care.

 

Benefits of Buying Fidelity United Engineering Insurance via Policybazaar UAE

Policybazaar UAE is an innovative online platform that simplifies the process of comparing and purchasing insurance policies. It offers a user-friendly interface that allows individuals and businesses to effortlessly browse through a wide range of insurance products, including life, health, car, and engineering insurance, among others. 

Purchasing Fidelity United Engineering Insurance via Policybazaar.ae comes with several advantages:

• Comprehensive Comparison: Policybazaar UAE allows users to compare different engineering insurance policies side by side, highlighting features, benefits, premiums, and exclusions. 
• Streamlined Process: The platform's simplified application process reduces paperwork and saves time. Customers can get quotes, review policy terms, and purchase insurance online without the need to visit physical offices or engage in lengthy phone calls.
• Customised Solutions: With access to a wide array of products, Policybazaar.ae helps users to find insurance solutions that are tailored to their specific project needs and risk profiles.

Expert Support: Policybazaar.ae provides expert advice and support throughout the purchase process. Customers can access guidance from insurance professionals who can answer questions, clarify policy details, and assist with the application process.