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. Product categories: Depending on the project, it can be divided into construction project all risks insurance and installation project all risks insurance; depending on the attribute of the object, it can be divided into project all risks insurance, and machinery breakdown insurance.

Insurance Period: the same as the construction period of the project.

What does engineering insurance cover?

  • Power plant
  • boilers
  • transformers
  • generators
  • turbines
  • process machinery
  • paper-making machines and printing machines
  • Computers, mainframes and software systems

Engineer insurance also covers business interruption, machinery movement, plant hired in or out and deterioration of stock.

Protecting the electrical equipment and machinery you own

Engineers insurance will cover all the electrical equipment and machinery you use in your work. You can either choose a sum insured to reflect the value of your machinery or you can opt to replace it on an “as new” basis. However, “as new” is not usually available as an option once your equipment goes beyond a certain age or if it’s kept and used outside.

Your engineer insurance will cover equipment away from your business premises and you don’t usually have to itemize individual items of equipment. You should also be covered for any specialist equipment you need to hire for a specific contract you are working on.

Cover can be provided for:

  • Loss or theft
  • Breakdown
  • Extraneous accidental damage
  • Sudden and unforeseen damage.

Business Interruption Insurance

As part of your Engineer Insurance you may have Business Interruption Insurance (also sometimes referred to as Contingency) included. This protects you if your equipment develops a fault causing a breakdown or explosion. If this happens you may have to stop working for a period of time while it’s fixed. Your Business Interruption Insurance would provide financial recompense to cover loss of profits or increased costs of working should such an incident occur.

Erection or engineering all risks (EAR)

EAR covers work where you are contracted to install and test machinery. This can range from siting and start up for a single machine or piece of equipment assembled in advance at the manufacturer’s factory to the creation of a multi-million pound production line in a car plant.

The key risk you face is often breakdown during the testing phase.

Professional Indemnity Insurance

Professional Indemnity cover can include:

  • Professional negligence (if you make a mistake during the course of your work for a client)
  • Loss of money or goods
  • Loss of data or documents
  • Defamation or libel
  • Unintentional breach of confidentiality or copyright

Public Liability Insurance

Public Liability Insurance will cover you if someone hurts themselves while on your premises. It will also pay out if you accidentally damage something belonging to a client, either while it’s on your premises or theirs.

Buildings and Contents Insurance

Just as you would protect your home and its contents with insurance, so you should insure your office (if you have one) and its contents. Contents insurance will cover all the equipment you use for work, including portable devices that you use away from your own business premises.