What Is Bridge Insurance?

Engineering insurance is insurance that covers all accidental material losses and economic compensation to third parties during construction and installation projects. Including all risks of construction engineering and all risks of installation engineering are comprehensive insurance. The subject matter insured is the main body of the project, the machinery and equipment used for the project, and the third party's responsibility. In addition, there are some incidental items. The insurance liability is loss due to natural disasters such as floods, heavy rains, earthquakes during the project period; fire; accidents such as explosions, flying objects falling; artificial losses such as theft and malicious acts; loss of engineering accidents such as raw material defects and process defects; Liability. Engineering insurance has deductibles and compensation limits. ^[1]

Engineering insurance

Engineering insurance is insurance that covers all accidental material losses and economic compensation to third parties during construction and installation projects. Including all risks of construction engineering and all risks of installation engineering are comprehensive insurance. The subject matter insured is the main body of the project, the machinery and equipment used for the project, and the third party's responsibility. In addition, there are some incidental items. The insurance liability is loss due to natural disasters such as floods, heavy rains, earthquakes during the project period; fire; accidents such as explosions, flying objects falling; artificial losses such as theft and malicious acts; loss of engineering accidents such as raw material defects and process defects; and damages to third parties Liability. Engineering insurance has deductibles and compensation limits. ^[1]

The significance of engineering insurance is that, on the one hand, it is beneficial to protect the interests of the owner of the building or the project owner, and on the other hand, it is also a necessary means to improve the responsibility of the engineering contract and effectively coordinate the interests of all parties.

Compared with traditional property insurance, engineering insurance has the following characteristics:

(I) Extensive and concentrated liability for underwriting risks

(2) Involving many stakeholders

(3) The contents of different types of insurance

(IV) Engineering insurance mainly bears technical risks

The scope of liability for engineering insurance consists of two parts. The first part is mainly for the material loss part of the project, including the loss of the tangible property of the project target and the loss of related costs; the second part is mainly for the insured during the construction process. Possible third party liability and loss due to financial liability.

The main types of insurance for engineering insurance include:

Engineering insurance as a relatively independent type of insurance originated in the early 21st century. The first engineering insurance policy was issued in the United Kingdom in 1929 to cover the construction of the Lambeth Bridge over the Thames. Therefore, the history of engineering insurance is much shorter than that of fire insurance in property insurance, and it can be said that it is a new member of the property insurance family. However, because engineering insurance is targeted at modern projects with large scale, complicated technology, expensive construction and long risk duration, its risks are fundamentally different from those of ordinary property insurance. Therefore, engineering insurance is based on the traditional property insurance to design a targeted risk protection program, and gradually develop its own independent system.

The development of engineering insurance was after World War II. First of all, Europe at that time was almost in ruins. After the war, countries began to build civil engineering. Objectively, a demand for engineering insurance has been formed, thus prompting the rapid development of engineering insurance. Secondly, the standardization of the engineering market itself mainly reflects the large number of public bidding methods used in engineering, and the use of sound and standard engineering contracting contracts in engineering bidding, which greatly improves the standardization of engineering contracts and further clarifies the risks and risks of both parties to the contract. Obligations, thus, create good conditions for the development of engineering insurance.

In China, although the history of the insurance industry can be traced back to the beginning of the twentieth century, engineering insurance has emerged and developed along with the situation of reform and opening up. The reasons are as follows: First, with China's opening to the outside world, a large number of foreign investors have invested in China to build a large number of engineering projects, and these foreign investors need the protection of engineering insurance from the perspective of their own risk dispersion. Second, under the situation of opening to the outside world, some engineering enterprises in China have begun to set foot in overseas engineering markets, and these engineering enterprises need to apply for engineering insurance as a condition for performance in the bidding process of overseas projects. Third, some domestic construction projects, due to the entrepreneurialization of the owner unit and the implementation of the project manager system by the contracting unit, objectively need effective control and management of risks, and also provide opportunities for the development of engineering insurance. Since the People's Insurance Company of China started engineering insurance in 1979, China's engineering insurance has developed into a major type of insurance in the field of property insurance, which has played a huge role in risk protection.