Engineering Insurance
Engineering projects involve complex technical processes, high-value equipment, strict timelines, and multiple stakeholders. From construction and installation activities to the operation of machinery and infrastructure, engineering works are exposed to a wide range of risks, including accidents, material damage, human error, and unforeseen external events. Even minor incidents can lead to significant financial losses, project delays, or legal liabilities.
Engineering insurance plays a vital role in managing these risks by providing financial protection throughout different stages of engineering projects. In Iran, engineering insurance policies are offered by domestic insurance companies in accordance with Iranian insurance regulations and are structured in line with internationally recognized engineering insurance practices. These policies support contractors, project owners, and engineers by safeguarding investments and ensuring continuity of projects.
Full-Risk (Contractors’ All Risks – CAR) Insurance
Full-Risk or Contractors’ All Risks (CAR) insurance is designed to provide comprehensive coverage for construction and civil engineering projects. This policy protects the insured against a wide range of accidental physical losses or damages during the construction phase. CAR insurance is commonly used for buildings, bridges, roads, tunnels, dams, and other infrastructure projects.
Key Features and Coverage:
Covers all types of accidental physical damage to contract works, construction materials, and temporary structures
Protection against fire, flood, storm, collapse, earthquake (as per policy terms), and other unforeseen events
Optional coverage for third-party liability arising from construction activities
Provides coverage for materials in transit to the construction site and storage on-site
Supports financing requirements by securing projects against unexpected losses
CAR insurance ensures that construction projects are financially protected, minimizes disruption due to accidents, and safeguards the investment of contractors and project owners.
Installation/Exploitation (Erection All Risks – EAR) Insurance
Installation and exploitation insurance, commonly referred to as Erection All Risks (EAR) insurance, is designed for projects involving machinery, industrial equipment, and steel structures during installation, erection, and commissioning. This insurance covers risks from transportation to the site, assembly, testing, and initial operation.
Key Features and Coverage:
Protection against accidental physical loss or damage to machinery, equipment, and industrial installations during erection or commissioning
Coverage includes handling errors, mechanical or electrical failure during installation, collapse, fire, explosion, and other perils
Often includes third-party liability for bodily injury or property damage caused during installation
Optional coverage may include testing and pre-operational risks
Suitable for factories, industrial plants, power plants, and large-scale installations
EAR insurance ensures smooth project execution by transferring financial risks associated with installation or commissioning to the insurer.
Energy Engineering Insurance
Energy engineering insurance provides coverage for projects in the power generation, oil, gas, and renewable energy sectors. Given the high value of energy installations and the technical complexity of operations, this type of insurance protects against accidental losses during construction, installation, and operational phases.
Key Features and Coverage:
Coverage for power plants, substations, oil and gas facilities, pipelines, and renewable energy installations
Protection against accidental physical damage to equipment, machinery, and infrastructure during construction or erection
Optional operational coverage for pre-commissioning and post-commissioning periods
Includes protection against fire, explosion, flooding, mechanical or electrical failure, and other accidental events
Supports contractual and financing requirements by ensuring project continuity and mitigating financial exposure
Energy engineering insurance is essential for high-capital, high-risk projects, providing financial security and risk management for investors, contractors, and operators in the energy sector.