Cover for your vehicle and the people you share the road with
Engineering Takaful protects construction and installation projects, and the machinery and equipment that keep a business running. Contractors' All Risks covers building and civil works during construction, and Erection All Risks covers the installation of machinery and plant. Operating businesses can cover sudden machinery breakdown, boilers and pressure vessels, electronic equipment and contractors' plant, as well as the loss of profit or stock that can follow a breakdown. Ordinary property cover often excludes these risks.
Participants contribute to a shared fund as Tabarru', and Retakaful protects that fund for large projects. Kalkaal manages the fund as Takaful operator for a disclosed Wakala fee.
To get started, send an enquiry. A Kalkaal advisor explains the cover, exclusions and contribution before you decide.
Why this cover
- Project cover for contract works for the construction or erection period in your schedule
- Breakdown cover for machinery, boilers and electronic equipment that property cover often excludes
- Loss of profit and stock cover when a breakdown stops production or cooling
- Project cover that can name the contractor, sub-contractors and project owner together
Your contribution What you pay for your cover. Part of it is Tabarru’ to the shared fund.Glossary goes into a shared fund that pays eligible claims; Kalkaal manages the fund for a disclosed Wakala Agency: participants appoint Kalkaal to manage the fund for an agreed fee, disclosed in your quotation and schedule.Glossary fee.
Cover options
Contractors' All Risks Takaful
Covers building and civil engineering works during construction, and third-party liability arising from the site, as stated in your schedule.
Erection All Risks Takaful
Covers machinery, plant and steel structures while they are erected, installed and tested, and third-party liability arising from the work.
Machinery Breakdown Takaful
Covers sudden and unforeseen breakdown of machinery, such as electrical or mechanical failure.
Machinery Loss of Profit Takaful
Covers loss of gross profit when a covered machinery breakdown interrupts production.
Plant All Risks Takaful
Covers mobile and fixed plant against accidental physical loss or damage, whether working or at rest.
Contractors' Plant and Machinery Takaful
Covers cranes, excavators, generators and other construction equipment on site against accidental loss or damage.
Electronic Equipment Takaful
Covers computers, servers and other electronic equipment against accidental damage, including data restoration and the hire of replacement equipment.
Boiler and Pressure Vessels Takaful
Covers boilers and pressure vessels against explosion and collapse, including damage to surrounding property, as stated in your schedule.
Deterioration of Stock Takaful
Covers spoilage of refrigerated or frozen stock caused by a breakdown of cooling plant. Suited to cold stores, food businesses and pharmacies.
What’s covered
- Physical loss of or damage to contract works during construction or erection
- Third-party injury or property damage arising from the project site
- Sudden and unforeseen breakdown of machinery, boilers and pressure vessels
- Damage to contractors' plant, cranes and site equipment
- Damage to computers and electronic equipment, including data restoration and hire of replacements
- Spoilage of refrigerated stock after a breakdown of the cooling plant
- Loss of gross profit after a covered machinery breakdown
Not covered and conditions
- Wear and tear, corrosion and gradual deterioration
- The cost of correcting faulty design, materials or workmanship
- Penalties for delay or for failing to complete a contract
- Machinery run beyond its design limits or without the maintenance it needs
- Consumables such as belts, tools, fuel and lubricants
- Boilers and pressure vessels without valid inspection certificates
- Full exclusions, waiting periods and deductibles are set out in your quotation and policy wording.
ClaimsHow claims work
How to claim
- Stop using damaged machinery and make the site or plant safe.
- Take reasonable steps to limit further loss, such as moving stock to other cold storage.
- Keep damaged parts for inspection, and do not start repairs until Kalkaal agrees, apart from urgent work to make things safe.
- Report theft or malicious damage on site to the police.
- Notify Kalkaal within the period stated in your schedule.
Documents you will usually need
- Completed claim form
- An engineer's or technician's report on the cause of the damage or breakdown
- Maintenance logs and inspection certificates
- Repair quotations or invoices
- Photographs of the damage
- Site diary or progress reports, for project claims
- Stock records and temperature logs, for deterioration of stock claims
What you’ll need for a quote
- The contract, bill of quantities and project programme, for project cover
- A site plan, ground conditions and details of nearby property
- A list of plant and machinery with make, model, year of manufacture and value
- Maintenance records and service contracts
- Inspection certificates for boilers and pressure vessels
- Annual gross profit figures, for loss of profit cover
- The type and value of stock in cold storage, and how temperatures are monitored
FAQs
What is the difference between Contractors' All Risks and Erection All Risks?
Contractors' All Risks covers civil and building works, such as houses, offices, roads and bridges, while they are being built. Erection All Risks covers the installation of machinery, plant and steel structures, including testing before handover. Many projects involve both, and a Kalkaal advisor can explain which cover fits each part of your project.
Should the contractor or the project owner arrange project cover?
Either can, and the contract often says who must. Contractors' All Risks and Erection All Risks can name the project owner, the main contractor and sub-contractors together, so everyone with an interest in the works is protected under one schedule. Share the contract's cover requirements with a Kalkaal advisor at the start.
Why do I need Machinery Breakdown cover if I already have Property Takaful?
Property cover protects against external events such as fire, storm and burglary, but it usually excludes internal mechanical or electrical breakdown. Machinery Breakdown Takaful fills that gap, and Machinery Loss of Profit Takaful can cover the income lost while production is stopped. Together they protect both the machine and the business it supports.
You may also need
Medical cover for your family and your workforce
Cover for your cargo, your vessels and your port operations
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