We are very pleased to launch our new Engineering Product Class.

Engineering is a technical product class and whilst not a high volume of policies are offered in the market, the coverage varies considerably between Insurers and can easily be confused or misunderstood.

To assist our subscribers, we have consulted with Insurers and have broken down each element to help you understand the differences and place the correct policy to meet your client’s needs.

To help you further we provide simple pop up Explanations for every point of comparison. Simply click on the bright yellow explained button, next to each sub heading and gain an overview on some important things to consider.

Engineering Product Class includes the Types of cover outlined below.

Available Sections As usual we highlight the Cover sections available within each Policy Wording
Breakdown of Equipment We identify differences between wordings for Machinery, Electronic Equipment and Boilers

Important things to consider are clearly identified in our comparisons as they can vary considerably between Policies. Some examples are:

  • The type of Insured Property and to what extent they cover Insured Equipment and the types of equipment excluded – Look at Excluded equipment for a detailed view
  • These days most machines are computer operated, and breakdown usually involves an Electronic aspect to it. Wordings have different approaches, whether combined or separate basis of settlement of Electronic, Electrical and Machinery are identified
  • Additional Costs – do they include
    • Customs & Dues, Removal of Debris,
    • Transfer or Insulating Media, refrigerant replacement included?,
    • Express Freight, Temporary repairs, Hire of temporary items, overseas consultants?
  • Related benefitssuch as Environmental upgrades, increased costs to Repair, fromHazardous substances, Ammonia Contamination, New equipment or situations
  • Definitions, Basis of Settlement, Co-insurance and Exclusions
  • Basis of Settlementconsiderations such as obsolete parts and damage to uninsured property (caused by the breakdown or explosion) can vary between policies
Business Interruption As with any property damage, any interruption to business causes financial hardship until the machinery or equipment are back up and running.  With Engineering, this is critical to insure as the availability of machinery or alternative premises may take several months to source and arrange.  It is important to understand the differences policies provide for

  • Cause of interruption/interference at the premises
  • interruption caused by Service providers such as Internet, Gas, Electricity, Telephone, and to what extent … is it limited to at the situation or how far from the situation
  • Gross Profit, Increased cost of working, payroll, severance pay
  • Rental Income in strata buildings
  • Definitions, Basis of Settlement, Co-insurance and Exclusions

Policies vary how much they offer Claims preparation services to assist clients and some do not include at all.  Business Interruption can be very complex and suggest it is critical.

Deterioration of Stock When equipment breaks down, perishable goods deteriorate and are lost, causing financial loss to the Insured.  Policies vary between covers such as

  • limited to Refrigerated stock, or does the policy extend to other non-refrigerated goods such as smoked goods (e.g. Christmas hams)
  • contamination of goods not owned by the Insured as well as own stock
  • Coinsurance application varies between policies
Restoration of Data When machinery or software fails, often the data is lost.  Costs involved in restoring or recreating data can be considerable, particularly if new software is not compatible to the Insured’s existing system.

We will continue to receive your feedback and develop all our comparisons to reflect changes in the market as well as your needs, in order to produce a more comprehensive comparison tool.  In the meantime, please log in to PolicyComparison.com and compare the features and benefits of the Engineering policies.You will still be able to use all the existing features of LMI Policy Comparison, such as download into excel or PDF files to save to your files or email to your clients, switch between icon and text views or rotate between comparing between Company or searching by Product Feature.

We look forward to hearing from you to enrich your LMI PolicyComparison experience and maximise the benefit of your subscription.

Kind Regards,

The LMI PolicyComparison Team