Contractors’ plant and machinery
Contractors’ plant and machinery
Reliable cover for your plant and machinery
Wider Coverage
Covers a wide range of machinery
Customisation
Offers multiple engineering insurance plans
Extensive Coverage
To safeguard industrial projects
Seamless Processes
Extends simple and hassle-free purchaseSafeguard your Business with Tailored Engineering Insurance Solutions
Construction companies, contractors, machinery owners, and other stakeholders involved in any form of engineering business operations face a wide range of potential risks. This ranges from accidental damages and natural calamities to fire, man-made disasters, and more.
Whether it is related to a construction project or the use of heavy machinery, such risks can lead to substantial financial losses due to the high level of investment involved.
For instance, the cost of a heavy-duty machinery like a crane can range from around ₹36,000 to ₹1.72 crores. Construction projects, as such, involve significant expenses, with commercial building costs ranging from ₹1,200 to ₹3,500 per sqft.
Equipment installations also come with high investments. For example, the average installation cost of a 3kW solar panel system for a home ranges between ₹1,89,000 and ₹2,15,000.
Engineering insurance is designed to protect businesses against unexpected losses and help them stay on track with their goals.
TATA AIG offers exclusive engineering insurance policy options that cover specific risks, making it easier to protect exactly what matters most to your business.
What is Engineering Insurance?
Engineering insurance refers to a bundle of insurance plans that cover financial losses arising from the following reasons:
- Physical loss or damage to plant and machinery used at construction sites.
- Incidents that may impact an entire construction project.
- Loss or damage occurring during the erection or installation of equipment or machinery.
- From natural disasters and location-specific risks to third-party liabilities, it safeguards businesses against a broad spectrum of risks.
The engineering insurance policy can also be customised to suit specific business needs with flexible features, such as the sum insured, policy tenure, and optional add-ons.
Why is Engineering Insurance Important?
Financial Protection against Damage during Construction, Installation, or Operation
Damage to machinery in engineering projects or permanent/ temporary construction works can lead to significant financial losses. Insurance for engineers or contractors provides adequate coverage to safeguard against such losses.
Covers Repair and Replacement Costs
Physical loss or damage to heavy machinery often leads to high repair or replacement expenses. An engineering policy helps cover these material damage costs.
Protection against a Wide Range of Unexpected Risks
Engineering projects are exposed to several unforeseen risks, such as fire, natural disasters, and machinery failures at the location. An engineering insurance policy covers multiple risks specific to the business operations.
Compliance with Contractual Agreements
Contractors may be held responsible for damages to machinery or construction works as per their contracts. Engineering insurance helps in covering these liabilities to meet the agreement requirements.
Types of Engineering Insurance Plans Offered by TATA AIG
Contractors’ Plant and Machinery Insurance
Contractors’ Plant and Machinery Insurance (CPM Insurance) offers financial protection for plant, machinery, and equipment used at construction sites. This includes heavy machinery, such as cranes, bulldozers, mixing plants, and motors. The engineering insurance policy covers the repair and replacement costs arising from physical loss or damage, including theft. It can be purchased by machinery owners, contractors, machinery rental companies, or financial institutions with a stake in the machinery.
Contractors’ All Risk Insurance
Erection All Risk Insurance
Benefits of Buying Engineering Insurance Plans
1
Offers Comprehensive Coverage
Engineering insurance offers end-to-end protection across construction, installation, and operational phases of engineering projects. It covers most risks unless specifically excluded under the policy.
2
Covers Diverse Engineering Projects and Equipment
It extends coverage to projects in sectors such as construction, manufacturing, and infrastructure. It also covers a wide range of heavy machinery like stone crushers, excavators, and generators.
3
Customisable to Specific Project Requirements
Financial protection under the engineering insurance cover is specific to the nature and scale of your project. You can also include optional add-ons to enhance protection based on your operational risks and needs.
4
Ensures Timely Project Completion
Disruptions caused by unexpected incidents may lead to major project delays. With the right professional engineering insurance support, you can take the necessary actions in a timely manner and ensure timely completion.
5
Boosts Stakeholder Confidence
By securing your business from financial risks, you show that you are reliable and responsible. This builds trust with stakeholders and helps you create long-term business relationships.
What is Covered Under the TATA AIG Engineering Insurance Policy? (Inclusions)
Physical Loss or Damage
Covers physical loss or damage to plant, machinery, or equipment while in use, being erected, or installed, as well as any other part of the insured property. This includes repair or replacement expenses.
Natural Calamities
Covers financial losses incurred to the insured property due to natural disasters, such as earthquakes, floods, storms, hurricanes, and cyclones.
Man-made Disasters
Provides coverage for financial losses caused by man-made acts, such as riots and strikes.
Third-party Liabilities
Covers legal liabilities arising from loss or damage to third-party property or injury/ death of third-party persons due to the project or machinery.
Project Location-Related Risks
Covers financial losses resulting from unexpected events at the project site, such as fire, theft, or explosion.
Removal of Debris
Covers the cost of clearing debris accumulated at the project site after unexpected incidents that affect the insured property.
Please note: Inclusions depend and vary based on the type of engineering insurance policy and its specific terms and conditions. Please review your policy document for complete details.
What is Not Covered Under TATA AIG Engineering Insurance Policy? (Exclusions)
Faulty Design, Defects, and Natural Wear and Tear
Loss or damage to machinery or equipment caused by defective material, faulty design, or natural wear and tear.
Pre-existing Conditions and Negligence
Loss or damage due to pre-existing conditions in machinery or from wilful acts of negligence.
Electrical or Mechanical Breakdown and Replaceable Parts
Damage to machinery arising from electrical or mechanical failure and to replaceable parts, such as drills and moulds.
Damage to Personal Belongings
Loss or damage to personal property or belongings of project owners, contractors, or employees.
Injuries to Employees
Financial liabilities arising from employee injuries or death at the project site are not covered. Employers can opt for a Workmen’s Compensation Insurance Policy for this coverage.
Specified Items, Machinery, and Vehicles
Loss or damage to cash, cheques, or documents kept at the site, machinery operating underground, and vehicles designed for road use.
Transit-related Losses
Loss or damage to plant, equipment, or machinery while in transit and not reaching the project site. This can be covered under a marine insurance policy.
Penalty Charges
Fines or penalties incurred due to project delays or failures to meet the timelines.
War, Nuclear Radiation, and Terrorism
Any loss or damage caused by war scenarios, such as civil war and rebellion, nuclear radiation, or acts of terrorism.
Other Exclusions
Excess amount payable by the insured on claims and consequential losses not related to the insured event.
Please note: Exclusions depend and vary based on the type of engineering insurance policy and its specific terms and conditions. Please review your policy document for complete details.
TATA AIG Engineering Insurance Policy Add-Ons
Escalation Cover
Covers unexpected increases in the cost, such as on the repair or replacement expenses, due to factors like inflation.
Express Freight
Covers additional transportation expenses incurred to get essential materials more quickly and resume business operations without delays.
Air Freight
Covers the extra expenses of transporting required materials by air to avoid project disruptions or delays.
Owner’s Surrounding Property
Protects the owner’s property or belongings against damage or loss due to risks that can impact the engineering project work.
50:50 Clause
States that if the reason for the damage is unknown, the loss will be shared equally. It will be 50% each by the company and the insured.
75 Hours Clause
States that all losses or damages to insured property occurring within 72 hours of a fire accident will be considered a single claim event.
Additional Customs Duty Cover
Covers additional customs duty charges that may arise while importing replacement materials to keep the engineering project on track.
Terrorism
Covers financial losses due to physical damage or destruction of insured property caused by acts of terrorism.
Please note: This is a general list of add-ons, and their availability may vary depending on the type of engineering insurance policy you have chosen. Please review your policy document for complete details.
Engineering Insurance Sum Insured
The sum insured is the maximum amount a business or an individual can claim under the engineering insurance policy in case of loss or damage. It is important to evaluate all potential risks and costs related to the project to ensure adequate protection.
For instance, Contractors’ Plant and Machinery insurance covers the cost of repairing it or replacing it with a new item of the same type. This also includes transport and customs duty charges. While estimating the sum insured, these expenses must be considered to ensure sufficient coverage.
Similarly, for Contractors’ All Risk Insurance, the overall construction costs should be taken into account. And for Erection All Risk Insurance, the erection or installation costs and the repair or replacement costs must be determined.
For expert assistance, contact us, and our team will guide you in determining the correct sum insured.
How to Choose the Right Engineering Insurance Policy?
Assess your Engineering Project or Machinery
Analyse your engineering project or machinery and identify potential risks that could lead to financial losses.
Determine the Sum Insured
Based on the potential risks identified, determine the sum insured. Consider the construction or erection costs and repair or replacement expenses.
Consider Different Engineering Insurance Plans
Consider the different engineering plans that match your business requirements. You may need a single plan or multiple policies for complete protection.
For example, in addition to Contractors’ All Risk Insurance, you can choose the Contractors’ Plant and Machinery to get exclusive coverage for the machinery used in the construction project.
Review Policy Conditions and Premium
Review policy inclusions and exclusions carefully to understand what is covered and not covered under the coverage. Determine the premium to check your affordability.
Determine the Most Suitable Plans
After evaluating your needs and reviewing policy details, finalise the plans that provide the right level of protection.
Why Should You Purchase Engineering Insurance for your Business from TATA AIG?
Trust and Assurance
Count on over 20+ years of expertise in the insurance industry with TATA AIG for assurance you can trust.
Coverage for a Broad Range of Engineering Projects
Protect your plant, equipment, or machinery, whether in use, being erected, or installed and construction projects of varying nature and scale.
Focus on High-Value Machinery and Industrial Projects
Benefit from extensive coverage designed to safeguard against unforeseen risks that could impact large industrial projects and high-value machinery.
Customisable Insurance Plans
Choose from multiple engineering insurance solutions and enhance them with optional add-ons to suit your business needs.
Expert Guidance
Seek personalised support from our experts to help determine the right sum insured and ensure adequate financial protection under the engineering insurance cover.
Ease of Digital Services
Access personalised support easily through our TATA AIG app or contact us on any other convenient mode of communication to get your queries instantly clarified.
Frequently Asked Question
What insurance should I get as an engineer?
The insurance coverage that you need depends on the nature of your engineering project, the financial investment involved, and the risks at hand.
For example, if you are working on a residential project and engaging contractors to use heavy equipment, you may opt for Contractors’ All Risk Insurance.
However, if you are using your own machinery, you can consider Construction Plant and Machinery insurance along with Contractors’ All Risk Insurance for broader protection.
What do you mean by a 50/50 clause in Engineering Insurance?
The 50/50 clause in Engineering Insurance is a policy condition. It states that if the cause of a loss or damage cannot be determined, the loss is shared equally between the company and the insurer. Therefore, in such cases, the insurer will settle the claim by paying 50% of the loss.
How much does engineering insurance cost?
The cost of engineering insurance varies depending on the type of policy chosen.
- For Construction Plant and Machinery Insurance and Erection All Risk Insurance, the premium depends on factors such as the type of machinery, sum insured, selected add-ons, location of operation, and usage.
- For Contractors’ All Risk Insurance, the premium is influenced by factors like the nature and scale of construction, total project value, project duration, sum insured and any optional add-ons.
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