Who this cover is for
We work with contractors, factories, consulting offices and project owners.
- Contractors delivering building or infrastructure projects
- Mechanical and electrical installation companies
- Factories that depend on sensitive production lines
- Project owners whose contracts require engineering cover
What the policy covers
The core covers we request in every quotation. Some are optional and carry an additional premium.
- Contractors all risksCover for the works themselves during construction against sudden damage.
- Erection all risksFor mechanical and electrical projects, equipment installation and testing.
- Contractors plant and machineryExcavators, cranes and equipment on site and in transit between sites.
- Machinery breakdownSudden mechanical and electrical failure of production lines.
- Third party liabilityDamage to adjoining property or injury to people outside the works.
- Maintenance periodExtension of cover after handover for the maintenance period in the contract.
- Surrounding civil worksRoads, fences and services affected by the project.
What it usually does not cover
These are common exclusions in this line of business. Actual exclusions differ between insurers, and we set them out in writing with every offer.
- Design error unless a specific extension is added
- The cost of correcting defective material or workmanship itself
- Delay penalties and contractual liquidated damages
- Corrosion, rust and gradual deterioration over time
- Loss arising from work stoppage or leaving the site unguarded
- Drawings, documents and records unless separately scheduled
Figures and clauses worth asking about
Before you sign, these are the clauses that decide what the policy is really worth.
Claim documents
We prepare them with you and review them before submission so the file is not delayed on a procedural point.
- The project contract and bill of quantities
- A site incident report signed by the project engineer
- Photographs of the damage before any clearing work
- Repair or reinstatement quotations from approved contractors
- Written notice to the insurer within the stated period
Questions we put to the insurer on your behalf
These questions are the difference between a cheap offer and a suitable one.
- Does the policy include materials supplied by the employer?
- What type of maintenance cover applies and for how long?
- Is design error cover included or excluded?
- What is the third party limit, and is it adequate for this site?
- Is contractors plant covered while in transit between sites?
- What is the deductible per event, and does it differ for natural perils?
Common questions about Engineering Insurance
Is engineering cover a tender requirement?
On most government and large projects yes, and an insurance certificate with specific wording is requested. We prepare it in the required form before the submission deadline.
The project overran. What happens to the policy?
The policy must be extended before it expires. Extending after expiry is harder and may be refused, which is why we remind you well in advance.
Does machinery breakdown cover human error?
Some policies include unintentional operator error and others exclude it. This is one of the key questions we put to the insurer before purchase.
What is the difference between contractors and erection risks?
The first covers civil and construction works, the second covers installation of equipment and systems and their testing. Some projects need both.
