Every engineering project, whether a bridge, a power plant, or even a small manufacturing unit, comes with significant investments and many unknowns. Imagine this: a crane breaks down mid-installation, a sudden storm damages materials, or equipment stops working unexpectedly. Without proper cover, these events can lead to significant financial stress, delays, and headaches.
Bajaj General Insurance offers engineering insurance designed to help developers, contractors, and MSMEs manage such risks with confidence, keeping projects on track without draining resources.
What is engineering insurance?
Engineering insurance is a type of coverage that protects projects and equipment during construction, erection, and operation. Engineering insurance ensures the cost of repairs or replacements is covered, letting work continue smoothly.
This type of cover isn’t only for large infrastructure projects. MSMEs that rely on expensive machinery benefit just as much, as a single breakdown can halt operations and significantly impact revenue. Bajaj General Insurance policies offer practical solutions for all project sizes, making financial planning more predictable and less stressful.
Why engineering insurance matters for developers?
Engineering projects are complex and often involve significant investments, tight timelines, and unpredictable challenges. Understanding why engineering insurance matters helps developers protect their work, maintain financial stability, and build trust with stakeholders, ensuring that projects can move forward smoothly even in the face of unexpected events.
Managing risks
Construction and engineering work involves hazards: fire, theft, accidents, or natural disasters. Insurance ensures these events don’t translate into huge out-of-pocket expenses.
Financial stability
Damaged machinery, incomplete structures, or halted projects can be costly. With the right coverage, such expenses are handled without derailing the budget.
Business continuity
While standard policies don’t automatically cover project delays, add-ons such as Advance Loss of Profit (ALOP) or Delay in Start-Up (DSU) help mitigate the financial impact. Bajaj General Insurance policies enable developers to continue operations even in the face of setbacks.
Peace of mind
Knowing there is support in place lets developers focus entirely on completing the project rather than worrying about unexpected costs.
Credibility with stakeholders
Having engineering insurance shows investors, lenders, and clients that the project is professionally managed and prepared for unforeseen events, strengthening trust in the developer.
Types of engineering insurance policies by Bajaj General Insurance
Bajaj General Insurance offers policies tailored to the nature and scale of the project:
Erection All Risk (EAR) Insurance: Ideal for large-scale installations, such as power plants and factories. Covers equipment, materials, and worker injuries during erection and installation.
Construction All Risk (CAR) Insurance: Suited for civil projects such as bridges, roads, and buildings. Protects property and personnel during construction.
Contractors’ Plant and Machinery (CPM) Insurance: Focuses on critical machinery like cranes, bulldozers, or excavators. Covers damage, theft, and accidents.
Machinery Breakdown Insurance: Offers coverage for sudden machine failures, whether on-site or in factories.
Boiler and Pressure Vessel Insurance: Covers explosions and related damages in boilers and similar equipment.
Electronic Equipment Insurance: Protects electronic systems used in projects, from computers to specialised monitoring devices.
For MSMEs, CPM and Machinery Breakdown coverage is particularly valuable, as small operations often depend on a few high-value machines to keep the business running.
What engineering insurance covers?
Bajaj General Insurance policies provide coverage for:
Material Damage: Physical damage to structures, machinery, or materials during construction or installation.
Theft or Burglary: Protection if machinery or materials are stolen from the project site.
Natural Events: Compensation for losses from floods, storms, or earthquakes.
Accidental Damage: Covers unexpected incidents during erection, testing, or commissioning.
Testing and Commissioning Risks: Covers damages during trial runs.
Third-Party Liability: Optional, based on policy selection and limits.
What engineering insurance does not cover?
Certain events are excluded and may require separate add-ons:
Faulty design or poor workmanship.
Regular wear and tear.
War or nuclear risks.
Terrorism (usually excluded unless added via a special pool).
Penalties or losses from delays, unless ALOP/DSU cover is chosen.
Careful review of policy terms ensures there are no surprises during claims.
Add-on covers for extra protection
Developers can extend their coverage with optional add-ons:
Loss of Profit Cover: Protects income when project delays occur.
Transit Insurance: Covers materials or machinery during transport to the site.
Custom Options: Add-ons like Owner’s Damage or Extended Warranty are available on request.
How to get engineering insurance?
Understand your risks: Determine whether the project involves civil work, machinery, or both.
Compare policies: Check coverage, exclusions, claim settlement ratios, and add-on options.
Choose sum insured: Ensure it aligns with the project’s scale and the value of the machinery.
Assess support: Bajaj General Insurance provides claims assistance and emergency support.
Read terms carefully: Understand inclusions and exclusions before finalising the policy.
Final thoughts
Engineering projects demand time, effort, and substantial investment. Unexpected incidents — such as machinery failure, material damage, or natural events- can disrupt timelines and increase costs.
Bajaj General Insurance engineering insurance offers practical solutions for developers and MSMEs, covering equipment, materials, and construction risks, as well as optional add-ons for delays or income loss.
With the right policy, projects can continue smoothly, businesses remain financially stable, and developers can focus on completing work efficiently, with confidence that risks are managed professionally.
(*Standard T&C Apply. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.)
