Engineering Insurance in UAE

Key Features, Benefits, and Claim Process

Engineering Insurance

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What is Engineering Insurance?

Engineering insurance is a special type of insurance designed to cover a variety of risks in the field of engineering. 

This insurance provides financial protection for construction and installation projects as well as the machinery and equipment used during these projects. It provides safety and financial security throughout both the construction and operational phases of a project.

Types of Engineering Insurance in UAE

While there are multiple types of engineering insurance in the UAE, the coverage may vary depending on your policy and insurer.  

Here are some of the key types of coverage of engineering insurance in the UAE: 

  • Contractors All Risk (CAR) Insurance: This insurance covers physical damage to the construction site and materials along with liability for injury or damage to third parties. Common risks covered include fire, flood, theft, and accidental damage.
  • Erection All Risk (EAR) Insurance: EAR insurance covers damages to equipment and machinery during installation or assembly. It safeguards against risks such as accidental damage, fire, and theft.
  • Machinery Breakdown Insurance: This policy protects against damage or breakdown of machinery and equipment used in construction or manufacturing. It covers mechanical or electrical breakdowns, human error, and power surges.
  • Professional Indemnity Insurance: This insurance covers legal liabilities for damages resulting from professional negligence or errors in design, construction, or engineering. It addresses issues like design errors, omissions, and professional misconduct.
  • Delay in Start-up (DSU) Insurance: As the name indicates, DSU insurance covers financial losses resulting from project delays due to unexpected events such as equipment breakdowns or natural disasters. It covers additional costs like labour and lost revenue.
  • Contractor’s Plant and Machinery Insurance: This provides coverage for loss or damage of construction plant and equipment — whether in operation, at rest, or during maintenance. Not limited to a specific construction site, this insurance type provides coverage on an annual basis.
  • Electronic Equipment Insurance: This policy covers accidental loss or damage to electronic equipment from operational hazards or catastrophic losses. It includes damages from fire, lightning, explosion, and burglary.
  • Boiler and Pressure Plant Insurance: It covers damages resulting from the explosion or collapse of insured boilers or pressure vessels during ordinary work. It covers damage to the boiler itself, other property of the insured, and third-party liabilities for personal injuries or property damage.

Features and Benefits of Engineering Insurance

Engineering insurance offers a range of features and benefits that provide essential protection for engineering projects:

  • Wider Coverage: Engineering insurance policies offer extensive coverage that encompasses a wide array of risks. These can include accidental damage, natural disasters, and unforeseen interruptions. With such a wide range of features, engineering insurance provides comprehensive protection throughout the lifecycle of a project.
  • Customised Cover: One of the major advantages of engineering insurance is the ability to tailor the coverage to meet the specific needs of each project. You can adjust your insurance coverage based on the scale, complexity, and specific risks associated with your projects.
  • Covers Plant and Machinery: This insurance provides coverage for plant, machinery, and equipment used in construction and operational processes. It ensures financial protection against the risks of breakdowns and damages.
  • Covers Third-Party Liability: Engineering insurance also covers liability for damages to third parties. This includes injuries or property damage caused by construction activities.
  • Risk Management Support: Many insurance providers offer risk management services as part of the engineering insurance package. These services help identify potential risks early in the project lifecycle.
  • Business Continuity Assurance: With the help of engineering insurance, you can run projects smoothly even in the face of setbacks, whether from equipment failure, damage to the construction site, or legal claims.

What Does Engineering Insurance Cover?

Listed below are the key inclusions of engineering insurance:

Types of Engineering Insurance


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, you can follow these steps: 

  • Visit the Official Website: Start by navigating to
  • 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 will contact you to assist you further with the application process and provide additional details as needed.

Frequently Asked Questions


Q. What does engineering insurance cover?

Engineering insurance covers any accidental physical loss or damage to the project, excluding specific risks mentioned in the policy. Commonly covered perils include fire, flood, theft, and natural disasters.

Q. Who should consider purchasing engineering insurance?

Anyone involved in construction or engineering projects, including contractors, developers, and engineers, should consider buying engineering insurance.

Q. Can engineering insurance cover both the construction and the operational phase?

Yes, engineering insurance can provide coverage during both the construction and operational phases.

Q. How is the premium for engineering insurance determined?

Engineering insurance premiums are based on the total insured value, the scope of the project, the duration, and the level of risk involved. Factors such as the location and nature of the project also influence the premium.

Q. Can engineering insurance be customised to specific project needs?

Yes, engineering insurance policies are easily customisable. Insurers offer various extensions and modifications to cater to the specific needs and risks of individual projects.

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