Construction insurance safeguards infrastructure projects and industrial assets against financial losses from accidents, damages, or delays. It ensures business continuity, supports economic growth, and mitigates risks in construction, manufacturing, and machinery operations.
Types of Construction policies
Boiler & Pressure Vessel Insurance
Safeguards against explosions, cracks, or failures of boilers, pressure vessels, and related equipment, covering repair costs, liability claims, and downtime losses.
Construction All Risks (CAR) Insurance
Covers physical loss or damage to construction projects (e.g., buildings, infrastructure) due to unforeseen events like fires, natural disasters, or accidents during the construction phase.
Erection All Risks (EAR) Insurance
Insures the installation, testing, and commissioning of heavy machinery or equipment against risks like damage, theft, or accidents during the erection phase.
Industrial All Risks (IAR) Insurance
Comprehensive coverage for industrial facilities (e.g., factories, plants) against property damage, machinery breakdown, fire, and business interruption, tailored to complex operational risks.
Machinery Breakdown Insurance
Protects against sudden mechanical or electrical failures of machinery and equipment, covering repair/replacement costs and business interruption losses caused by breakdowns.
Machinery & Equipment Insurance
Protects machinery and equipment from risks like theft, accidental damage, or external perils (e.g., fire, floods), ensuring operational continuity and minimizing financial disruption.
Coverage, exclusions and special clauses
Common Exclusions
Inadequate engineering design, construction technology error, construction material quality defects, mechanical damage of machinery and equipment that occurred without external momentum.
Material Loss
The insured project loss caused by any accidents or natural disasters except the exclusions.
Special Clauses
There are more than 40 special clauses available on the basis of risk assessment and additional premium, including clause in respect of strike, riot, and civil commotion, limited liability insurance period clause, extended liability guarantee period clause, special fee clause, and clauses for buildings and tunnels in earthquake regions.
Third-Party Liability
By law, the insured shall assume the compensation liability for the personal injury or property damage to the third party in constructions sites and adjacent areas caused by the accident that directly related to the insured project.