Engineering INSURANCE

The field of Engineering Insurance finds its roots in the mid nineteenth century when machines started to change and dictate ways of life as a result of the great Industrial revolution in Britain, Germany and the other European countries.

From the early days of insuring steam boilers, this field has grown in leaps and bounds in direct proportion to development and mechanization. As public and private spending experienced a steady upward movement in infrastructure projects, economic losses to project owners and executors due to fires and other accidents spiraled, thus necessitating risk financing methods like insurance.

Today, UAE is experiencing a massive construction boom with a $350 billion worth of active construction projects. There is a visible surge in Real Estate, touristic projects and infrastructure developments in the country. And these projects, small or big, are faced with various risks which can have large economic impact on governments, financers, owners and contractors. This makes Engineering Insurance a growing sector in the country.

Following are some of the popular insurance products in the Engineering Insurance segment.

Contractor’s All Risk (CAR) / Erection All Risk (EAR) insurance

This policy is taken up by principals or contractors engaged in construction projects. The policy covers accidental loss or damage to the project including damage to tools and equipments used. Additionally, it can cover third party liabilities arising out of the project. It can also cover existing properties of the principal. CAR Insurance covers civil projects whereas EAR covers projects involving installation of plants and machinery. Insurance can be affected for the complete project period that can sometimes extend to many years.

Machinery Breakdown Insurance

Contractor’s All Risk (CAR) / Erection All Risk (EAR) insurance

Contractors, who are involved in multiple projects of similar nature, can also take an annual policy covering all projects undertaken during the period.

Some of the types of projects that can be covered are Road projects, bridges and flyovers, construction of buildings and villas, extension of buildings, fit out works in existing premises, electromechanical projects, construction of warehouses, installation and extension of plants and machineries etc.

Machinery Breakdown Insurance

Machinery Breakdown Insurance

This policy covers financial loss incurred due to loss or damage to machinery as a result of sudden accidental electrical and mechanical breakdown. Machinery can include pumps, compressors, turbines, processing machines, generators etc.

Contractor’s Plant and Machinery Insurance

This insurance protects contractors against financial losses due to accidental loss or damage to their equipments. Equipments can include forklifts, cranes, excavators etc.

Electronic Equipment Insurance

Electronic Equipment Insurance

This policy covers electronic equipments (Including system software) against sudden & unforeseen physical damage.

All the above Insurance policies are subject to terms and conditions and since this class of insurance is quite technical, it is advisable to discuss with your broker in depth.


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