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Project and Engineering Insurance

Specialized coverage for construction projects, installation of machinery, and engineering works during construction, erection, testing, and operational phases. Our engineering insurance solutions provide comprehensive protection for your projects from groundbreaking to commissioning and beyond.

1. Contractors All Risk (CAR) Insurance

Comprehensive coverage for civil construction projects where civil works constitute more than 50% of the contract value. Protects against material damage to the project works, construction equipment, and third-party liabilities during the construction period.

Who Should Purchase:

Civil construction contractors, Project developers and owners, Infrastructure companies, Building construction firms, EPC contractors (for civil portion), Government departments undertaking construction

Policy Details

Policy Period: Construction period + typically 3-12 months maintenance period

Sum Insured: Full contract value including materials, labor, equipment hire

Coverage Territory: Project site and vicinity

Key Exclusions:

  • Wear and tear, gradual deterioration
  • Consequential losses (unless delay in start-up covered)
  • War, nuclear risks
  • Willful misconduct
  • Existing structures (unless specifically covered)

Why Essential:

  • Protects massive capital investment during vulnerable construction phase
  • Covers both accidental and natural perils
  • Single policy for multiple risks
  • Often required by project financiers and clients

  • Buildings (residential, commercial, industrial, institutional)
  • Roads, highways, bridges, flyovers, tunnels
  • Dams, barrages, irrigation projects
  • Airports, ports, railway stations
  • Infrastructure projects
  • Underground works
  • Foundation and piling works

  • Contract Works: All permanent and temporary works, materials on site or nearby, construction equipment being used
  • Material Damage: Fire, explosion, earthquake, flood, storm, landslide, subsidence
  • Construction Risks: Collapse, faulty design, defective materials, faulty workmanship (discovered during construction)
  • Theft and Burglary: Loss or damage from theft of construction materials and equipment
  • Third-Party Liability: Bodily injury or property damage to third parties arising from construction activities
  • Removal of Debris: Cost of clearing debris after insured loss
  • Professional Fees: Architects, surveyors, consulting engineers fees for reinstatement
  • Express Freight and Overtime: Additional costs for expediting replacement materials/labor
  • Off-site Storage: Materials stored away from construction site (if declared)

2. Erection All Risk (EAR) Insurance

Comprehensive coverage for erection, installation, testing, and commissioning of mechanical and electrical plants, machinery, and equipment where electromechanical works exceed 50% of contract value.

Who should purchase:

EPC contractors specializing in plant installation, Machinery manufacturers with installation services, Industrial plant setup contractors, Power sector contractors, Original Equipment Manufacturers (OEMs) with erection obligations

Policy Details

Policy Period: Erection period + testing/commissioning + typically 3-6 months maintenance

Sum Insured: Contract value including equipment, erection costs, freight, insurance

Coverage Territory: Project site; can include transit from supplier

Testing Period: Extended coverage during trial runs, load tests, commissioning (critical phase)

Key Exclusions:

  • Wear and tear, corrosion, oxidation
  • Willful acts or gross negligence
  • War and nuclear risks
  • Liquidated damages and penalties
  • Consequential losses (unless covered by extension)

Why Essential:

  • Erection is high-risk phase for expensive machinery
  • Covers technical risks unique to installation
  • Often mandatory requirement in EPC contracts
  • Protects against both physical damage and technical failures

  • Power plants (thermal, hydro, solar, wind)
  • Generating stations and transformers
  • Industrial machinery and plant installation
  • Boilers, turbines, generators
  • Manufacturing plant setup
  • Oil and gas facilities
  • Process plants (chemical, pharmaceutical, petrochemical)
  • Material handling equipment
  • Heavy machinery erection

  • Machinery and Equipment: All items to be erected including spare parts, accessories
  • Transit Coverage: From supplier to site (if opted)
  • Storage at Site: Equipment stored before erection
  • Erection and Installation: Risks during assembly, erection, installation
  • Testing and Commissioning: Coverage during trial runs, load testing, commissioning
  • Material Damage: Fire, explosion, lightning, flood, earthquake, storm, impact
  • Technical Risks: Faulty design, defective materials, defective casting, faulty erection, lack of skill
  • Third-Party Liability: Bodily injury or property damage during erection activities
  • Removal of Debris: Clearing costs after loss
  • Express Freight: Expedited shipping of replacement parts
  • Air Freight: Emergency air transport costs

3. Contractors Plant & Machinery (CPM) Insurance

Insurance for construction equipment, plant, and machinery owned or hired by contractors for use at construction sites. Covers mobile and static equipment used for construction activities.

Coverage Basis:

Owned Equipment: Full replacement value

Hired Equipment: Contractor’s liability for hired equipment damage

Policy Details

Policy Period: Annual or project-specific

Sum Insured: Replacement value or current market value of equipment

Who Should Purchase:

Construction contractors with equipment fleet, Infrastructure development companies, Equipment rental companies, Project contractors using expensive machinery

  • Cranes (mobile, tower, crawler)
  • Excavators and backhoes
  • Bulldozers and graders
  • Concrete mixers and batching plants
  • Piling rigs and drilling machines
  • Compressors and generators
  • Rollers and pavers
  • Dumpers and tipper trucks
  • Scaffolding and shuttering equipment
  • Pumps and dewatering equipment
  • Welding machines
  • Formwork and falsework

  • Accidental damage during use or operation
  • Fire, explosion, lightning
  • Theft and burglary
  • Natural perils (storm, flood, earthquake)
  • Malicious damage
  • Impact and collision
  • Breakdown of machinery parts
  • Operator errors
  • Transit between sites (if covered)

Trusted Advice. Tailored Solutions. Lasting Protection.

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