What is Engineering Insurance?
Engineering insurance is a group of all-risks-based products covering construction and erection projects (CAR/EAR), machinery in operation (machinery breakdown), electronic equipment and contractors' plant against sudden and unforeseen physical damage.
Construction and erection projects are exposed to many risks such as natural catastrophes, theft, workmanship and design faults, and accidents. Contractors' all risks (CAR) and erection all risks (EAR) policies cover the works, site facilities and third-party liability from project start until provisional acceptance.
For operating businesses, machinery breakdown and electronic equipment insurance cover risks that fire policies do not, such as short circuit, operator error, and material and casting defects. Contractors' plant and machinery insurance protects the equipment working on site.
What is covered?
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Contractors' All Risks (CAR)
All risks cover for construction works, site facilities and materials during the project.
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Erection All Risks (EAR)
Erection of machinery, plant and steel structures, including testing and commissioning.
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Machinery Breakdown
Sudden and unforeseen mechanical and electrical breakdown of machinery in operation.
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Electronic Equipment
Physical damage to computers, servers, communication, measuring and medical devices.
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Contractors' Plant & Machinery (CPM)
Damage to excavators, cranes, forklifts and similar equipment on site.
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Third-party liability
Damage caused to the surroundings and third parties during the project.
Optional extensions
- Maintenance period cover
- Existing property and adjacent structures
- Design defect extension
- Express freight and overtime costs
- Business interruption following machinery breakdown
- Data and software reinstatement costs
Who is it for?
- Contractors and subcontractors
- Project owners, investors and real estate developers
- Energy (solar, wind, hydro) and infrastructure investments
- Production facilities with extensive machinery
- Equipment-intensive operations such as data centres, hospitals and laboratories
Information needed for a quote
Sharing the following information lets us obtain fast and accurate quotes from several insurers.
- Project contract, contract value and work schedule (CAR/EAR)
- Project location, soil survey and structure type
- Machinery and equipment list with ages and new replacement values
- Brand, model, serial number and value for construction plant
- Claims history
Frequently asked questions
Who should take out contractors' all risks insurance?
Usually the contractor, although the employer may be the policyholder depending on the contract. The employer, contractor and subcontractors can be named as joint insureds.
What does machinery breakdown cover that a fire policy does not?
A fire policy covers external perils, while machinery breakdown covers sudden internal failures such as short circuit, overvoltage, material defects, operator error and disintegration by centrifugal force.
What insurance does a solar power plant need?
Erection all risks during installation; in the operational phase, plant all risks policies including machinery breakdown, electronic equipment and business interruption cover are preferred.
What happens if the project is extended?
The policy period can be extended by notifying the insurer and adding an endorsement, so it is important to share changes to the work schedule in good time.
Scope of cover and limits are determined by the general and special conditions of the issuing insurer.