Construction and Engineering Insurance

Contractor's All Risks (CAR)

This policy is issued with regard to civil engineering and infrastructural projects. It provides cover against material damage to contract works and Third Party Liability damage (bodily injury and property damage). Cover is provided on an All-Risk basis, i.e. cover against all types of events/risks, unless excluded by the policy cover. The policy is issued for the whole period of contract work including the maintenance period. It includes all parties involved in the project: The principal(s), contractor(s), sub-contractor(s), and consulting engineer(s).

Erection All Risks (EAR)

For all types of engineering contract works, including material damage and third party liability cover. Cover is provided on an All Risk basis. The policy is issued for the whole period of contract work including the maintenance and testing periods.

Contractor's Plant and Machinery (CPM)

This policy is specially designed to provide insurance cover to a contractor''s plant and machinery. It provides material damage cover to insured items on an All Risk basis.

Machinery Breakdown 

This policy was developed to grant industry an effective insurance cover for plant, machinery and mechanical equipment at work, at rest or during maintenance operations.

It is an All Risk “accident” insurance supplementing the coverage afforded by fire insurance.

Thus it covers unforeseen and sudden physical loss of or damage to the insured items, that necessitates their repair or replacement. Loss or damage covered under machinery insurance is mainly due to one of the following causes:

  • Faulty design (calculations, plans, drawings and specifications) 
  • Faults at the workshop or in erection 
  • Defects in casting and materials
  • Faulty operation, lack of skill, negligence, malicious acts 
  • Tearing apart on account of centrifugal force 
  • Physical explosion, and flue gas explosions in boilers 
  • Electrical causes, such as short circuits
  • Shortage of water in boilers 
  • Any other cause not specifically excluded from the policy cover.

Be aware that the machines also still need to be insured on a Fire Insurance policy.  

Machinery Breakdown Business Interruption Insurance can be taken as additional cover.

It is designed to indemnify your lost income and standing charges related to the breakdown of the insured machine. 

Electronic Equipment 

Specially designed to provide cover to computer systems and all other types of electric and electronic equipment. Material damage cover, cost of restoration of data and increased cost of working cover are provided on an All Risk basis.