engineering-banner engineering-banner


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.


Machinery Breakdown

Machinery breakdown insurance provides a protection cover to the machines used by factories and industries. This insurance covers accidental breakdown and physical damage of the machinery and the cost of repairs or replacement of the damaged machine parts

The protection is offered for machines both in working and in rest condition. Some other conditions are when dismantled or moved or re-assembled for cleaning, inspection or repair.

  1. Mechanical: All types of Mechanical industrial plant like compressors, pumps, turbine engines, turbines (steam, water & gas), blowers, machine tools, presses and refrigerators etc.
  2. Electrical: All types of electrical machines like a transformer, electrical motor, alternators & generators, motors, rectifiers and switchgear etc.
  3. Process machines: All types of Process machines like cold storage, engineering and metallurgical, paper/ pulp making, printing, rubber/ plastics and textiles – cold storage, engineering and various manufacturing
  4. Stationary: All Stationary equipment can be covered
Machinery breakdown due to electrical reasons
Abnormal operating conditions of the machine
Falling, impact and collision resulting in breakdowns
Carelessness and lack of operating skills
Damage to turbines, compressors, etc
Damage or loss due to fire from within the machinery
War, civil war, riot, strike
Fire and allied perils, theft, etc.
Damage due to overloading experiments
Ignored gradual defects developed
Regular wear and tear of the machinery
Pre-existing defects
Loss of use of machinery
Damage due to boiler explosion
Damage to belts, chains, etc
Take a Look at Risk Management Services Arrow

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


Need Help?

Want to know more about our Products & Risk Management Services?

Contact Us