Engineering Insurance in UAE

Types of Engineering Insurance	Inclusions
Contractors All Risk (CAR) Insurance	Covers physical damage to the site and materials Liability for injury or damage to third parties Risks covered include fire, flood, theft, and more Covers accidental damage Suitable for various construction projects
Erection All Risk (EAR) Insurance	Covers damage during equipment installation or assembly Protects against accidental damage, fire, and theft Coverage during the erection phase Suitable for large installations like power plants Customisable coverage options
Machinery Breakdown Insurance	Covers the breakdown of machinery and equipment Risks such as electrical/mechanical breakdown covered Covers human error and power surges Applicable to construction and manufacturing equipment Both operational and at-rest machinery covered
Professional Indemnity Insurance	Covers legal liability from professional negligence Addresses design errors and omissions Covers professional misconduct Essential for design, construction, and engineering firms  Legal expenses are also covered
Delay in Start-up (DSU) Insurance	Covers financial losses from project delays Includes additional labour costs and lost revenue Applies to delays from equipment breakdowns or natural disasters Essential for timely project completion Customisable to project specifics
Contractor’s Plant and Machinery Insurance	Loss or damage of construction plant and equipment covered Covers equipment at work, at rest, or during maintenance Not limited to a specific construction site Annual coverage available Includes all accidental and unforeseen eventualities
Electronic Equipment Insurance	Covers accidental loss or damage to electronic equipment Covers a wide range of electronic devices and systems Protection from operational hazards and catastrophic losses Includes damages from fire, lightning, explosion, and burglary Tailored to specific operational needs
Boiler and Pressure Plant Insurance	Coverage against explosion or collapse of boilers and pressure vessels Damage to the insured item itself and other property of the insured Liability for third-party property damages and personal injuries

 

Exclusions of Engineering Insurance 

Engineering insurance in the UAE generally excludes certain risks and scenarios from coverage. Common exclusions include:

• Losses resulting from poor planning or oversight during the construction phase
• Damage from the routine use and ageing of materials and equipment 
• If the damage results from a failure to adhere to safety regulations or statutory requirements
• Damages due to acts of war, terrorism, or related events 
• Any damage from nuclear reactions, radiation, or radioactive contamination 
• Damage arising from intentional misconduct or omissions by the insured 
• Indirect losses or damages that occur as a consequence of a covered event (like loss of profit)

Who Should Buy Engineering Insurance?

• Architects
• Construction Contractors
• Building Owners
• Project Managers
• Civil Engineers
• Electrical Engineers
• Mechanical Engineers
• Developers
• Subcontractors

Documents Required to Get Engineering Insurance

The following documents are required to obtain engineering insurance in the UAE:

• Completed application form
• For projects involving construction or engineering work, a copy of the contract with details about the scope and nature of the work
• Detailed documents outlining the project timeline and stages of implementation
• An itemised list of materials, parts, and labour with their costs
• If applicable, a report detailing the valuation of the project or property
• Details of previous insurance covers
• Documentation of the risk management strategies in place for the project

Factors Affecting Engineering Insurance Premiums

Some of the factors affecting engineering insurance premiums are given below:

• Project Value and Scope: The overall value and the complexity of the project can greatly influence the premium. Larger and more complex projects carry higher risks, which translates into higher premiums.
• Project Duration: Longer projects generally have higher premiums as they are risky for a more extended period.
• Nature of the Construction Site: Locations prone to natural disasters or with difficult terrain may result in higher premiums due to increased risk.
• Type of Construction: The materials used and the nature of the construction work (e.g., high-rise buildings vs. residential houses) play an important role in determining premiums.
• Safety Measures: Implementing good safety and security measures can lower risk exposure, potentially reducing insurance costs.

Claim Process for Engineering Insurance

To file a claim for engineering insurance in the UAE, you must follow these steps:

• Report the Incident: Notify your insurance provider about the incident as soon as possible. It should include details such as the time, date, and location of the event and a description of what happened.
• Document Submission: Submit the necessary documents to support your claim. This includes the policy number, a detailed report of the incident, any relevant photos or videos, and estimates of the damage or loss incurred.
• Claim Assessment: Once you submit your engineering insurance claim along with the documents, the insurance company will assess the damages. This may involve an inspection by a claims adjuster to evaluate the extent of the damages.
• Claim Reference Number: After reporting your claim, you will receive a claim reference number. 
• Follow-up Communications: The insurance company may require additional information or documentation during the claims process. In this step, keeping open lines of communication is essential for a smooth process.
• Claim Resolution: After assessing the claim, the insurance company will inform you about the approval or denial of your claim. If approved, the insurer will proceed with the compensation as per the terms of your policy.

How to Get a Quote for Engineering Insurance in the UAE?

To easily get a quote and apply for engineering insurance in the UAE through Policybazaar.ae, you can follow these steps: 

• Visit the Official Website: Start by navigating to Policybazaar.ae.
• Select Business Insurance: On the home screen, look for the option labelled 'Business Insurance' and click on it.
• Find Engineering Insurance: Within the business insurance section, search for the engineering insurance category to explore the various types available.
• Fill Out the Lead Form: Click on the specific type of engineering insurance you are interested in. You will need to fill out a form with details such as your company's name, your name, email address, and mobile number.
• View Quotes: After submitting the form, click on the 'View Quotes' button to proceed.
• Assistance from SME Expert: Once your information is submitted, a representative from Policybazaar.ae will contact you to assist you further with the application process and provide additional details as needed.

Frequently Asked Questions