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Engineering insurance refers to the insurance that provides economic safeguard to the risks faced by the ongoing construction project, installation project, and machines and equipment in project operation.

Currently, engineering insurance provides comprehensive coverage that provides protection against risk associated with construction / erection of project, plant machinery during operation. It is classified into two broad groups- Construction Phase and Operational phase.

Construction Phase policies are issued for the period of project - Contractor’s All Risk (CAR) Insurance / Erection All Risk (EAR) Insurance Operational Insurance are annual policies renewable at expiry – Machinery Breakdown Insurance, Boiler and Pressure Plant Insurance, Contractor’s Plant and Machinery (CPM) Insurance etc.

Erection All Risk (EAR)

Large machinery and plant used in manufacturi

Erection All Risk (EAR) insurance provides extensive coverage for projects involving the erection or installation of various components such as plant machinery and equipment. This policy is suitable for a wide spectrum of projects, ranging from the installation of a single machine to the construction of expansive power plants.

Designed to offer comprehensive protection, EAR insurance safeguards both contractors and employers against physical loss or damage that may occur during the course of construction.

EAR cover begins from the time of unloading of the first consignment at the project site and terminates on completion of testing or handing over of the project to the principal employer, or the period chosen, whichever is earlier.

  1. Storage
  2. Erection
  3. Testing and Commissioning of machinery & plant pertaining to various Industries
Fire, lightning, explosion, aircraft damage
Riot, strike, malicious act
Flood, inundation, storm, cyclone and allied perils
Landslide, subsidence and rockslide
Burglary and theft
Faults in erection
Human errors, negligence, lack of skill
Short circuiting, arcing, excess voltage
Collapse, damage due to foreign objects, impact damage
War, Invasion
Nuclear Reaction Nuclear Radiation or Radioactive Contamination
Insured’s Contribution – Deductible
Wilful Act or Wilful Negligence of the Insured
Defective Material or Bad workmanship
Wear Tear Corrosion Oxidation Deterioration
Normal Maintenance or Making Good
Disappearance or Shortage (Inventory Losses)
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This is just an indicative list, kindly refer policy wordings for detailed information.


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