Engineering Insurance
I’m a small contractor doing house renovations. Do I need engineering insurance?
If you’re working on projects worth more than ₹5–10 lakhs, yes! Engineering insurance protects you from:
- Accidental damage during construction
- Third-party injuries at the worksite
- Equipment theft from the construction site
- Natural disaster damage to ongoing work
Why Do You Need Fire Insurance?
Fire Safety Reduces Risk. Insurance Helps Protect Against Financial Loss.
Fire extinguishers, alarms, sprinklers, and other safety measures can reduce the risk and impact of fire, but they cannot eliminate the possibility of financial loss. Fire insurance provides financial protection for eligible property and assets against insured fire and allied perils, subject to the policy terms and conditions.The coverage you need depends on what you own and what you want to protect:
Building & Property
Protection for eligible buildings and property against covered losses.
Contents & Assets
Coverage eligible for Furniture, equipment, machinery, and other contents
Stock & Inventory
Protection for eligible stock, goods, and inventory affected by covered events.
Business Risks
Depending on the policy, additional protection may be available for certain business-related losses.
What's the difference between CAR and EAR insurance?
CAR (Contractor’s All Risk)
For civil construction projects like:
- Houses, roads, bridges, buildings
- Houses, roads, bridges, buildings
- Also includes construction plant & machinery and principal’s surrounding property
- Includes third-party liability
Includes third-party liability
For machinery installation projects like:
- Factory equipment, power plants, turbines
- Covers damage during transport, storage, erection
- Covers damage during transport, storage, erection
What's the difference between CAR and EAR insurance?
It depends, but typically:
- The main contractor pays and includes the cost in the project budget
- The client may arrange insurance directly for more control
- Sometimes costs are split – e.g., contractor pays CAR, client pays EAR
What if my equipment gets stolen from the construction site?
Theft is usually covered under standard CAR/EAR policies, but with conditions:
- Forced entry must be proven
- Site must have proper security (night watchman clause)
- Site must have proper security (night watchman clause)
- Police complaint should be filed within 24 hours
Are there other types of engineering insurance?
Yes! Besides CAR and EAR, there are other important engineering policies:
- Machinery Breakdown Insurance : Covers sudden breakdown of installed machines
- Electronic Equipment Insurance: For damage to computers, servers, lab instruments, etc.
- Boiler and Pressure Plant Insurance: Covers explosion damage to boilers and pressure vessels
Coverage Made Right
Guidance Made Simple
Every business has different risks and insurance needs. Get expert guidance from AIMS Insurance to find suitable commercial insurance coverage for your property, assets, employees and business operations.