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) 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.
This is just an indicative list, kindly refer policy wordings for detailed information.
