Engineering Insurance...

Mercantile Islami Insurance PLC offers specialized engineering insurance solutions to protect projects, equipment, and professionals in Bangladesh. With a deep understanding of the engineering industry's risks, they provide comprehensive coverage tailored to meet the unique needs of clients. From construction projects to machinery breakdowns, Mercantile Islami Insurance PLC ensures peace of mind by mitigating potential financial losses and enabling businesses to focus on their core operations.

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Engineering insurance is a type of insurance that provides financial protection against the risks associated with ongoing construction projects, installation projects, and the machinery and equipment used in project operations.

The following are some common types of engineering insurance policies:

  • Contractors All Risk Insurance (CAR): This policy covers the risks faced by contractors during construction projects, including damage to the works, materials, and third-party liabilities.
  • Erection All Risk Insurance (EAR): This policy provides coverage for the risks involved in the installation and erection of machinery and equipment.
  • Machinery Breakdown Insurance (MBD): This policy offers protection against the sudden breakdown of machinery, covering the cost of repair or replacement.
  • Deterioration of Stock Insurance (DOS): This policy covers losses due to the deterioration of perishable stock, such as food or pharmaceutical products, caused by specific perils.
  • Boiler & Pressure Vessel Insurance (BPV): This policy provides coverage for damage or accidents involving boilers, pressure vessels, and related equipment.
  • Contractors Plant & Machinery Insurance (CPM): This policy covers the machinery and equipment used by contractors during construction projects against accidental damage, breakdown, and theft.

Most engineering insurance policies can be written on a single project basis, an annual basis, a specified basis, or a blanket basis. Additionally, engineering inspection is now a mandatory requirement under the Factories Acts for a wide range of plants, ensuring safety and compliance with regulations.

When Engineering Insurance is Essential?

Explosion risks - Engineering insurance is crucial in order to obtain comprehensive coverage for the risks associated with explosions. The material damage cover's inclusion of the peril 'explosion' offers only partial coverage and specifically excludes damage caused by steam-pressured vessels.

Electrical breakdown - Insurance coverage for electrical breakdown is vital, particularly when computers are involved. The policy should encompass protection against sudden and unforeseen loss or damage to the computer system, as well as the additional expenses incurred due to such damage. Additionally, it should include provisions for the restoration of any data that may be lost as a result of the breakdown.


Most engineering policies can be issued in various formats, such as single, annual, specified, or blanket basis. It is important to note that Engineering Inspection has become a mandatory requirement under the Factories Acts for a wide range of plants.