Engineering insurance, also known as construction and engineering insurance, is a type of insurance policy designed to protect individuals and businesses in the engineering and construction industry from financial losses resulting from a variety of risks and hazards. This type of insurance provides coverage for infrastructure projects involving huge outlay in the form of road, erection of manufacturing projects, green field project in areas of renewal energy, hydro projects, Wind, Solar so on and so forth.
Engineering insurance typically covers loss or damage to the construction works/project, equipment, machinery breakdown and third-party liability. It also provide coverage for loss or damage caused by natural disasters, fire, theft, and vandalism.
Types of project policies :
Installed Machinery Policies (Annual Policies) :
This particular segment of Insurance provides wide range of risk associated with construction against damage/ loss to the contract, works, machinery and equipment at the construction site. This typically covers risk of fire, lightning, riot, strike, malicious damage, bad workmanship, burglary/theft and damages by any accidental external means. This type of policies are suitable where civil work are predominant.
This is an all-risks project policy, issued for civil engineering projects like constructions of residential complexes, roads, bridges, etc. Being an all-risk policy, the exclusions are specified.
Few Important exclusions are – loss/damage due to faulty design, wear & tear, inventory losses, war & srcc, nuclear reaction/radiations, willful act or willful negligence of the insured.
This provides coverage for machinery and equipment used by contractors during construction of projects. It covers risks such as accidental damage breakdown theft and loss of machinery or equipment at the construction site. CPM Insures ensures that contractors have financial protection for their essential tools and machinery such as cranes, bumpers, excavators, TBM, etc which are used for erection/construction of projects. CPM policy is issued as an extension of the mother project policy such as EAR/CAR policy, If the value of such machineries is less than 5% of the sum insured of the mother project policy or upto the value of 25 lacs. Exceeding this limit requires a separate CPM Policy.
This is an all-risk policy with specified exclusion printed on the policy.
The cover is operative for machine when they are at work or being dismantled or cleaning or overhauling or reassembling thereafter.
A few important exclusions are :
Insures the projects where the erection of P&M, Equipements and Structures are the major part of the project having little civil works.
Marine Cum Erection Policy provides virtually a comprehensive cover from the time of dispatch of the lot of materials meant for project from manufacturer/suppliers premises to the erection site/entire period of transit/storage at site/completion of erection/testing/commissioning or taking over. MCE=M/T+EAR or CAR
Machinery Insurance Policy covers all electrical and non electrical (Mechanical & Chemical) like Electric Motors, Transformers, Dessel Generator Set, Air Compressors, etc against sudden accidental loss due to vibration, mal adjustment, falling, impact, collision and the like, obstruction or entry of foreign body, etc.
Boiler & Pressure Plant (BPP) : Items covered are Boilers and other Pressure Vessels which generate pressure during their normal operation. It covers explosion and collapse damage, other than by fire, to the Boiler and/or other pressure plant and to sorrounding property of the Insured. It also cover legal liability for death, bodily injuries or property of third party.
Machinery Loss of Profit (MLOP) : This policy cover loss of gross profit (consequential losses following breakdown of machine due to an accident. Breakdown of critical machine may bring the entire manufacturing to a halt resulting in loss of gross profit.
Detoriation of Stocks Policy (DOS) also known as Stock Spoilage Insurance Policy. The Policy is a consequential loss policy and covers the risk of deterioration/contamination following breakdown of refrigeration. Machinery Insurance Cover of refrigeration plant & machinery is a pre condition for taking a DOS insurance.
Electronic Equipment Policy (EEI) : This is an all-risk policy covering Computers, Bio-Medical Equipment, X Ray Equipment, Audio/Vedio Equipment, All Movable/Portable Electronic Equipment, Various Medical Equipment like Scanners, ECG, etc.
Advanced Loss of Profit Policy (ALOP) and Delay in Start Up (DSU) : covers can be stitched with the engineering material damage policy to cover the anticipated financial loss arising out of delay, this delay being a direct consequence of the material damage admitted under the engineering policy.
Civil Engineering Completed Risks (CECR) : This Insurance cover can be extended to completed civil engineering work like roads, building, runways, dams, tunnels etc. The Policy Covers material damage to the property arising out of accidental external means, firegroup of perils and the Act of God perils-namely storm, tempest, flood, inundation, typhoon, cyclone, earth quake.
Solar plant insurance is a type of insurance that covers the risks and losses associated with solar power plants. Solar plant insurance can provide protection for the transit, construction, and operation phases of solar projects, as well as the generation of solar power. Solar plant insurance can help solar project developers, owners, investors, lenders, contractors, and operators to mitigate the financial impact of unforeseen events such as natural disasters, equipment breakdown, theft, vandalism, fire, cyberattacks, and regulatory changes.
There are various types of Insurance covers available in India for various kinds of solar power plant/solar power setups as mentioned below:
Solar Project Insurance: This covers the transit and erection risks of solar projects, including the civil works, plant and machinery, and third-party liability. It also covers the operational risks of solar projects, such as loss or damage to the plant and machinery, business interruption, and third-party liability.
Solar Panel Insurance: This covers the loss or damage to the solar panels due to various perils, such as fire, lightning, storm, flood, earthquake, theft, vandalism, etc.
Solar Generation Insurance: This covers the loss of income due to reduced power generation caused by factors beyond the control of the insured, such as grid failure, change in irradiation, change in tariff, change in regulations, etc.
The premium and coverage of solar plant insurance may vary depending on the insurance provider, the type of policy, the size and location of the solar project, the technology and equipment used, the contractual obligations, and the risk assessment.
Our team of experts understand the risks associated with a solar plant and designs the insurance coverage accordingly which helps the project owners and risk managers to effectively mitigate the risks.