Engineering Insurance

Engineering Insurance is an insurance policy that covers a wide range of engineering related risks. It is a comprehensive insurance that provides complete protection against risks associated with erection, resting, and working of any machinery, plant, or equipment. In addition to this, under the Factories Acts businesses are required to have certification on specific items of plant such as lifting plant, pressure vessels and steam boilers. Suitably qualified engineers employed by an insurance company can inspect such items at the required intervals and provide the necessary certificates/documentation to meet your obligations.

Need for Engineering Insurance

Explosion risks

Engineering insurance is essential to provide full cover for explosion risks. The peril ‘explosion’ in material damage cover provides only limited cover and excludes damage caused by any steam-pressured vessel.

Electrical breakdown

Insurance cover for electrical breakdown is essential where computers are involved. The policy can cover sudden and unforeseen loss or damage to the computer installation, the increased cost of working arising from such damage and the reinstatement of any data lost because of the breakdown.

Engineering Insurance


Contractors All Risk Insurance(CAR)

Erection All Risk Insurance(EAR)

Machinery Breakdown Insurance(MBD)

Contractors Plant & Machinery(CPM)

What it Covers?

  1. Sudden and unforeseen damage cover including breakdown from internal defects
  2. Accidental damage cover for plant and equipment
  3. Computer equipment cover for loss or damage by almost any external cause
  4. Contract works cover – Erection All Risks
  5. Deterioration of Stock

What it does not cover?

  1. War Invasion
  2. Nuclear Reaction Nuclear Radiation or Radioactive Contamination
  3. Insured’s Contribution – Deductible
  4. Wilful Act or Wilful Negligence of the Insured
  5. Cessation of Work
  6. Defective Material or Bad workmanship
  7. Wear Tear Corrosion Oxidation Deterioration
  8. Breakage of Glass
  9. War Invasion
  10. Disappearance or Shortage (Inventory Losses)
  11. Design Defects
  12. Loss of files, drawings, cash, cheques etc,
  13. Consequential Loss
  14. Terrorism