Engineering Insurance

Provides cover for ongoing construction project, installation project, and machines and equipment in project operation.

Product categories include:

Contractor’s All-Risk (CAR)

Contractors' all risks (CAR) insurance is a non-standard insurance policy that provides coverage for property damage and third-party injury or damage claims. Damage to property can include improper construction of structures, damage that happens during a renovation and damage to temporary work erected on-site. Third parties, including subcontractors, may also become injured while working at the construction site. CAR insurance not only covers those associated risks, but also bridges these two types of risks into a common policy designed to cover the gap between exclusions that would otherwise exist if using separate policies. CAR insurance coverage is common for such construction projects as buildings, water tanks, sewage treatment plans, flyovers and airports.

Scope of Cover

The most important causes of losses indemnifiable under CAR insurance

  • Fire, lightning, explosion
  • Flood, inundation
  • Windstorm of any kind
  • Earthquake
  • Theft, burglary
  • Collapse
  • Bad workmanship, lack of skill, negligence, malicious acts or human error

Erection All-Risk (EAR)

EAR policies are designed to cover the risk of loss arising out of the erection and installation of machinery, plant and steel structures, including physical damage to the contract works, equipment and machinery, and liability for third-party bodily injury (BI) or property damage (PD) arising out of these operations.  Covered parties include the general contractor, subcontractors, and in some cases suppliers and manufacturers of equipment. Examples of the types of projects for which EAR coverage is typically purchased include power plants, manufacturing and fabrication facilities, water and wastewater treatment facilities, and telecommunications centers (particularly where the erection of signal towers is involved).

Industrial All Risks

This is an insurance package which mainly incorporates Fire & Allied Perils, Burglary, Accidental damage and Business Interruption and it provides indemnity to the property insured against any loss or damage from any cause.

Machinery Breakdown

Machinery Insurance is a type of an accident insurance for machinery and provides cover against sudden and unforeseen physical loss or damage to the insured machinery. The purpose of machinery insurance is:

  • To cover the cost of repairing or replacing indemnifiable breakdown or losses to machinery
  • To give assistance in expediting repairs

Basic scope of cover:

  • Human failure: carelessness, negligence, faulty operation, lack of skill, malicious acts
  • Operational Causes: centrifugal forces, failure of control and regulating devices, physical explosion and implosion, shortage of water, overheating, impact, flue gas explosion in boilers
  • Manufacturer's fault: Faulty design, faulty calculation, defective material and casting, bad workmanship, faults in assembly and erection.
  • Electrical causes: Faulty insulation, short circuit, overtension/excessive voltage
  • Natural Hazards: Storm, frost, water.
  • Environmental hazards: Dust, humidity, temperature.

Boiler and pressure vessel

The Boiler and Pressure Vessel insurance provides coverage against explosion of any boiler or pressure vessel insured whilst in the course of ordinary work.


  • Damages (other than by fire) to any boiler or pressure vessels or other apparatuses
  • Damages to auxiliaries and surrounding properties (e.g. buildings and machineries)
  • Death of or bodily injuries to third parties
  • Damages to third party properties

General policy exclusions include defects due to wearing away or wasting of materials, grooving or fracturing whether by leakage corrosion or by fuel action, failure of individual tubes in boilers of water tube, damage to Insured’s property caused by fire whether resulting from explosion or any other cause whatsoever, loss sustained by stoppage of work, loss or damage arising out of convulsion of nature, any kind of consequential losses.