Beyond tangible property

Author – Kobus van Niekerk, Senior Underwriter at Consort Technical Underwriting Managers

Originally featured in COVER

Most short-term insurance products insure tangible property. In some cases it may also cover liabilities, and to a certain extent, consequential loss.

Engineering insurance: more frequently goes beyond that. It extends to insure a dream, an ambition, a vision, or a passion, to become a reality. This can be a house, a factory, or even that super sports stadium that you have always dreamt of building. However, dreams may become nightmares by the unfortunate interference of a misfortune. Whilst Consort cannot wish misfortunes away, or assist with all of them, we certainly can make the dream come true by fixing physical loss or damage to the subject of the dream and share with the insured, the joy of a dream coming true. Contract Works insurance is vital to ensure the successful completion of projects.

WHEN DREAMS UNEXPECTEDLY COME TO A STANDSTILL

Let us put this concept of insurance further into practice. Dairy farmers are dependent on milk processors, so are meat producers on the abattoir and the fruit producer on the cooling facilities at the fresh produce market or the canning factory. At any time, despite regular maintenance, cooling and processing plants can break down. If this should happen, not only will the appropriate engineering insurance compensate for the repair of the breakdown, but it will also compensate for the financial loss following the deterioration of the stock or the extra cost in hiring compressors to keep the fridges going. Even the loss of profits may be insured. The food industry is vital to our country and for that reason engineering insurance plays a fundamental part in the food industry. Consort is a trusted partner in providing specialised insurance to keep the wheels of the manufacturing and processing industries running.

Electronic Insurance: originated in the mid-sixties of the previous century, mainly to insure data processing media and equipment. Today, the world is experiencing the fourth industrial and an ongoing electronic revolution. Electronics have become indispensable, not only in the industrial and commercial world, but also in our daily lives. For instance, today cars are built by robots and entire factories are computerised. Electronic Equipment Insurance not only insures the traditional insured perils but also electrical and mechanical breakdowns. This means that your computers are insured, as well as cameras, surveillance equipment and anything else which is electronically orientated or controlled, for example, medical equipment. We insure the full spectrum of electronic equipment including the consequential loss following an occurrence.

INSURANCE FOR THE FUTURE

After electricity replaced steam as a source of energy, huge power stations were built. These power plants are primarily powered by coal but in some cases oil and gas are also used. Due to the pollution effect of these activities, another source of energy has become a necessity. The first obvious choice was nuclear. However, the inherent dangers and exorbitant costs forced the attention to renewable energy. Solar and wind energy are fast growing sources of energy and Consort identified the need for a specialised insurance program for the renewable energy industry. In conjunction with our London office and other specialist Underwriting Management Agencies in the Lombard Insurance Company Ltd stable, we developed a Cradle to Grave insurance product designed for our local environment. Should I be asked to define insurance in short, my reply is “WE SELL A PROMISE”.

Consort strives to be an industry leader through the ongoing engagement of our values; to act responsibly, in good faith and with integrity, to maintain our passion and vision, to continually enhance our knowledge and expertise, and to always honour the promise contained within the cover we provide.

CONSORT TECHNICAL UNDERWRITING MANAGERS (PTY) LTD (REG NO 1999/003909/07) IS AN AUTHORISED FINANCIAL SERVICES PROVIDER (FSP NO 2273), IS FAIS COMPLAINT AND IS UNDERWRITTEN BY LOMBARD INSURANCE COMPANY LIMITED, AN AUTHORISED FINANCIAL SERVICES PROVIDER (FSP 1596) AND INSURER CONDUCTING NON-LIFE INSURANCE BUSINESS.