Engineering insurance is a specialized type of general insurance designed to cover financial losses due to machinery breakdowns, equipment failures, and other unforeseen risks in construction, erection, and operational phases. It plays a crucial role in mitigating risks associated with mechanical failures, ensuring business continuity, and safeguarding against unexpected financial burdens.
Engineering insurance is crucial for businesses relying on machinery and equipment. These assets are fundamental in industries such as manufacturing, construction, and power generation. Despite regular maintenance, machinery failures can occur unexpectedly, leading to severe consequences like:
By securing an engineering insurance policy, businesses can protect themselves from potential damages caused by:
Engineering insurance at the project level ensures coverage from the inception of the project until commissioning. It includes:
Contractors All Risk Policy (CAR)
Covers damages during construction projects due to natural calamities, theft, and human
errors.
Erection All Risk Policy (EAR)
Protects against losses during the erection and installation of machinery and plant
equipment.
Marine-cum-Erection Insurance (MCE)
Covers risks associated with the transportation, storage, and installation of machinery.
Storage-cum-Erection Insurance (SCE)
Ensures protection against damages occurring during storage and erection phases.
Contract Plant and Machinery Insurance (CPM)
Safeguards contractors' plants and machinery used in construction and engineering
works.
Contract Works Insurance (CW)
Covers financial losses due to construction delays, damages, and unforeseen events.
Advance Loss of Profits (ALOP) or Delay in Startup Insurance (DSU)
Compensates for financial losses resulting from project delays due to insured perils.
Once the project is operational, businesses require engineering insurance policies to cover ongoing risks related to machinery and equipment. These include:
Machinery Breakdown Policy (MBD)
Covers repair and replacement costs due to unexpected machinery breakdowns.
Electronic Equipment Insurance (EEI)
Protects computers, communication devices, and other electronic equipment from
damages.
Boiler and Pressure Plant Insurance (BPP)
Provides coverage for boilers and pressure plants against explosion and malfunction.
Deterioration of Stocks Insurance (DOS)
Safeguards perishable stock from losses due to refrigeration failures or temperature
fluctuations.
Civil Engineering Completed Risks Insurance (CECR)
Covers damages to completed civil engineering projects due to external factors.
Machinery Loss of Profits (MLOP)
Provides compensation for business losses following machinery breakdown or boiler
explosion.
Boiler Explosion Insurance
Covers financial damages and liabilities resulting from boiler explosions.
In addition to the basic coverage, businesses can opt for additional benefits such as:
Apex Insurance has a team of specialized professionals who provide expert guidance in selecting the best engineering insurance policies tailored to your business needs. Our team ensures:
To learn more about how engineering insurance can protect your business, get in touch with Apex Insurance today. Our experts are ready to help you secure the right coverage and safeguard your assets effectively.
