Cover built around construction, erection and project timelines.
Engineering insurance covers construction, erection and the plant used to carry it out. The principal covers are Contractor’s All Risk for civil works, Erection All Risk for plant and equipment installation, and Contractor’s Plant and Machinery for the equipment itself. Most are all-risk policies, covering everything except stated exclusions, and run for the project period rather than a standard annual term.
Construction sites carry exposures that standard property cover does not reach. Works in progress are neither building nor stock. Materials sit on open sites. Third parties pass adjacent to operations. Temporary structures fail. And the value at risk rises continuously as the project advances, which makes fixed annual cover a poor fit.
The most common failure in engineering cover is timing. Policy periods are set to contract schedules, and contract schedules routinely slip. Damage occurring during an unextended overrun falls entirely outside cover. The second gap is the maintenance period — contractors remain liable for defects after handover, but cover has usually ceased.
Each placed across our insurer panel and structured around your actual exposure rather than a standard template.
If your operations fall into any of these, this category is likely relevant to your risk profile.
Either, depending on the contract. Owner-arranged policies covering all contractors are common on larger projects and prevent gaps between parties.
Cover must be formally extended. Damage during an unextended overrun is not covered, which is among the most frequent claims disputes in construction.
The defective work itself is excluded. Consequential damage to other parts of the works is generally covered, subject to which exclusion clause applies.
Cover during the defects liability period after practical completion, when the contractor remains contractually responsible for rectification.
No. Cranes, excavators and site equipment require separate Contractor’s Plant and Machinery cover.
The equivalent of CAR for the installation and commissioning of plant, machinery and equipment rather than civil works.