Engineering Insurance


Engineering Insurance

What is engineering insurance?

Engineering insurance refers to the type of insurance which provides financial safety to the risks faced by the ongoing construction project, installation project, machinery, and equipment in the operation. This  insures construction and machinery installation projects as well  as machinery breakdown. It saves you from probable financial shocks due to exposure of your infrastructure projects like road building constructions and renovations, dams, canal, pipe laying, fire, accidental collapse, flood, typhoon, earthquake and several other risks. The policies of the Erection All Risks  cover the risk of loss attributable from the installation and erection of plant and steel structures, equipment and machinery. It even covers the liability of bodily injury to the third party and property damage. The engineering insurance policy period is based on the duration of the project.

SGI Philippines offers the following cover -

Contractors All Risk (CAR) –  Contractors All Risk insurance policy provides cover against unforeseen loss or damage to civil construction projects such as residential/ commercial buildings, theatres, factories,  warehouses, roads, bridges, dams, reservoirs, tunnels, oil/gas pipelines, water/sewage disposal works, airport, flyovers.

Erection All Risk –  Erection All Risk covers risk relative to erection/installation of machinery/equipment  and designed to cover all risk, except specifically excluded, projects during storage, erection, testing, and commissioning. The cover includes physical damage to the equipment, liability for third-party bodily injury or other property damage due to these operations.

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Electronic Equipment – Electronic Equipment Insurance Policy covers your Computers/Low voltage equipment/other electronic equipment against the risk of damages. This policy tends to cover the complete range of electronic equipment like a personal computer, microprocessor, telecommunication equipment, audio/visual equipment, and sophisticated gadgetry.

Machinery Breakdown – Machinery Breakdown Insurance Policy covers machinery and equipment against unforeseen and sudden physical loss due to all kinds of accidental, mechanical and electrical breakdowns.

Why engineering insurance is important –

Perils or risks like a riot, strike, malicious act, fire, lightning, explosion, aircraft damage, flood, inundation, storm, cyclone, landslide, subsidence, rockslide, burglary, theft, faults in erection, human errors, negligence, short circuit, excess voltage, mechanical breakdown, and other damages are being covered by engineering insurance. However, there are some exclusions in engineering insurance you should keep in mind i.e. loss or damage due to faulty design, defective material, bad workmanship, manufacturing defects, wilful loss or damage due to negligence, damage due to war. Engineering insurance is important for you as it gives financial protection to the damages and risks occurred on construction sites and engineering insurance helps to reimburse all the possible losses. SGI Philippines works with you to ensure you the right type and level of cover is available to protect your business.

Benefits of Engineering Insurance -

Engineering insurance is always beneficial for the protection of heavy machinery and other construction types of equipment. Engineering insurance is mainly classified in different four subcategories i.e. Contractors All Risk (CAR), Erection All Risk, Electronic Equipment, and Machinery Breakdown.

The heavy metal machinery can also break down while working at this point of time workers have no idea what to do. If you have engineering insurance cover with you all the damages occurred due to fire, lightning, explosion, riot, strike, malicious act, flood, storm, cyclone, landslide, rockslide, burglary, theft, faults in erection, short circuit, high voltage issue.

  • It protects heavy machines and equipment that is involved in manufacturing and construction work.
  • Also, it covers small electrical equipment like computers
  • Damage or loss caused by machinery failure including breakdowns caused by the internal defect and third party claims
  • Accident while erecting machinery, plants, steel structures, and construction machinery
  • Covers the explosions or collapses of the boiler and pressurized containers.
  • Loss of profits caused due to failure of machinery during installation or construction projects.




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