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Commercial property insurance

Property Owners Engineering Plus

It is estimated that 15-20% of the total value of an average commercial office or retail building can relate to the mechanical and electrical equipment found within it. Alongside the traditional plant such as boilers and lifts, modern buildings also rely on building management systems and computer systems to operate.


Whilst commercial property policies may cover building plant and systems against fire and flood, the risks associated with equipment failure may not be covered. Power surge, electrical or mechanical breakdown and electrical arcing can not only cause damage to key equipment, but can also interrupt building operations and impact on rental income. In addition, with building management systems becoming more intelligent a data loss can, for example, have a significant impact on power, lighting, communication, security and fire systems. Which is why, HSB Engineering Insurance, as part of Munich Re, has developed a property owners engineering policy to cover these risks.


What is Property Owners Engineering Plus (PEP)?

PEP is a comprehensive policy designed specifically for property owners to cover the equipment and machinery integral to the building. Examples of the types of equipment covered include:


  • Boilers, space heating, ventilation and air conditioning systems
  • Lifts and escalators
  • Building maintenance units
  • Electrical distribution systems
  • Equipment used for building security and environmental control
  • Electrical and mechanical parts of water pumping, pressurisation and distribution systems


The policy not only covers equipment breakdown of building plant and machinery but also includes hired-in plant for maintenance associated equipment, and reinstatement of data for building management systems. In addition to the insurance cover, the PEP policy also includes inspection services to comply with regulatory health and safety requirements.

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This publication is available exclusively to Munich Re clients. Please contact your Client Manager.