Engineering all risk insurance covers a wide range of risks to which a project is exposed to, starting right from ordering of material at site till successful testing and completion of the project. This plan is very useful for owners, contractors, architects, consulting engineers and investors because it leads to the reduction of overall construction and erection expenses. This policy offers protection against unexpected accidents leading to hefty financial losses.

Depending on the type of cover bought the policy may include many of the following:

  • Erection Coverage
  • Fire, lightning, explosion, aircraft damage
  • Riot, strike, malicious acts
  • Flood, inundation, storm, cyclone, and allied perils
  • Landslide, subsidence, and rockslide
  • Burglary and theft
  • Faults in erections
  • Human errors, negligence
  • Short circuiting, arcing, excess voltage
  • Electrical and mechanical breakdown
  • Collapse, damage due to foreign objects, impact damages
  • Any other sudden, unforeseen, accidental damages not explicitly excluded

Click here to know what is not covered under engineering all risk insurance?

This policy provides cover against legal liability that can arise to a 3rd party for bodily injury or property damage due to an accident at the work site.

Also, elective add-ons can be opted like storage risk at fabricators sites, clearance and removal of debris, air cargo, cross liability, third-party liability etc.

Case Study

Japan Infrastructures Pvt. Ltd. (India) is a subsidiary company of Japan Heavy Works Ltd. Japan, and is responsible for many major civil engineering projects in India. Many of these projects require huge machines and working under water.

The company takes its responsibilities very seriously and as summed up by one of the project managers here in India, “the company takes it very seriously if anything in the locality is damaged and takes extra care that it either does not happen or is repaired to its previous condition as far as possible, and that is why we usually have engineering all risk insurance policies for our construction projects.”

The insurance for such large projects obviously come with certain deductible but none the less will be helpful in avoiding any major loss to the company.