A mechanical breakdown insurance policy is designed to insure electro-mechanical equipment in case of unexpected accidental damage, and is also used as a basis for a loss of profits policy as a result of a mechanical breakdown event. On the one hand, they insure typical systems such as pumps, compressors, air-conditioning systems and refrigeration systems, generators and transformers, and elevators and escalators;
A classic condition in a contract works policy is to place a security guard on the site, is this the only choice? No!
But…there are conditions that must be met in order for the insurance company to agree to deviate from the policy. See a creative example from a site that is divided into several sub-areas, where the permanent guard was actually replaced by three parallel security circles:
In the contract works insurance policy there is an exception for work stoppage, usually for a period exceeding 90 days. It is important to understand that the coverage is not stopped, but its scope may be affected.
The issue of distances is one of the challenges in projects that include demolition and construction works in a dense urban environment, with an emphasis on those that include excavations for the construction of basement floors. This factor determines the insurance company’s approach to the level of risk.
What’s worse than waking up in the morning and finding out that your factory has burned down? Understanding that the insurance coverage may be partial because you did not adhere to proper maintenance routines.
So what is the difference between a local insurance company and the reinsurers, in contract work insurance?
First, let’s understand the basic principle. An insurance company buys risks, and is limited in the scope of the risk it is allowed to take on, this is to avoid reaching a situation of being unable to pay off its obligations in extreme cases. (more…)
As we mentioned, projects with a high scope of work are usually left to the reinsurers, who are not familiar with the Israeli construction industry, the relevant Standards, and the required safety procedures. Therefore, reports intended in advance for the reinsurers will be written in an expanded format that also contains information that is self-evident for the local underwriter. (more…)