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Non Life Insurance - Why engineers should buy insurance?
11-Jan-2003
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Engineers build the world and no one can deny it. All major and noteworthy projects involve extensive efforts and planning by engineers. There can be no scope for errors or mistakes owing to the huge cost of materials and manpower involved.

As an engineer, you have to perform various tasks ranging from preparing draft and plans to on-site supervision of the actual structure. Supposing due to a miniscule error in determining the soil type, you find that part of the structure has started to sink after overnight rainfall.

Your client will recover the costs of reinstating and reconstruction from you since it was primarily your responsibility to ensure the aspects of safety at the site. And being involved in a cost-intensive industry, you will probably incur bankruptcy paying off the losses.

Your professional reputation will be damaged forever and chances of your survival in the market will practically be non-existent. Why don't you invest in Professional Indemnity insurance for engineers? A Professional Indemnity insurance policy will protect you from damages or loss to materials as well as construction. It also provides compensation against death or bodily injury that might be caused owing to negligence or omission of vital details.

You should also consider investing in Workmen's Compensation insurance since your employees and workmen are subject to intensive risks while working on the site. If by chance, they lose their lives or are gravely injured, then you will have to pay them the amount specified by the Courts of Law.

Sometimes, owing to breakdown of equipment, work schedules are thrown out of gear and production stops completely. Until the equipment is repaired or replaced and reinstated, no work gets done. You stand to lose a lot since you have to pay for the repairs or replacement of the machinery as well as your workmen and staff's daily wages despite zero-percent productivity.

If you invest in a Machinery Breakdown insurance policy, then you will at least be indemnified against losses or damage to the machinery while it is in transit or in operation. Machinery Breakdown insurance can also be used to insure only specific parts or sections of the equipment.

Source : insuremagic.com back