Dubai's infrastructure ambitions — from expanding Expo districts to advancing smart city initiatives — mean the engineering insurance market is one of the most active in the Middle East. Engineering insurance is a specialist class covering risks specific to mechanical and electrical engineering, installation projects, and operating plant and machinery. If your business involves engineering works, installations, or operating industrial equipment, this guide explains the cover available to you.
Erection All Risks (EAR) Insurance
Erection All Risks insurance covers the installation and commissioning of mechanical and electrical plant, machinery, and equipment — from HVAC systems in commercial buildings to industrial processing equipment. EAR insurance provides all-risks cover during the erection and testing phase, including defects in materials or workmanship revealed during testing, and third-party liability arising from erection operations.
EAR is distinct from Contractor All Risks (CAR) insurance, which covers civil construction works. For projects that combine civil construction with mechanical and electrical installation, both CAR and EAR covers may be needed — or a combined policy can be structured covering both elements.
Machinery Breakdown Insurance
Once installed and operational, plant and machinery requires ongoing insurance against mechanical and electrical breakdown. Standard property insurance policies cover fire and external damage to machinery but typically exclude breakdown caused by mechanical failure, electrical faults, or operational error. Machinery breakdown insurance fills this gap, covering the cost of repair or replacement following sudden and unforeseen breakdown.
For manufacturing, industrial, and energy businesses in the UAE, machinery breakdown can cause both direct repair costs and significant business interruption losses — production downtime while equipment is repaired. Machinery breakdown policies can include business interruption cover linked to the insured equipment.
Electronic Equipment Insurance
Electronic equipment insurance covers computers, servers, communication equipment, and control systems against breakdown, accidental damage, and in some cases theft. It is distinct from cyber insurance (which covers cyber attacks and data breaches) and property insurance (which covers fire and theft but not breakdown).
For businesses heavily dependent on electronic systems — data centres, telecoms infrastructure, manufacturing control systems — electronic equipment insurance is a critical component of a complete risk management programme. Cover can include increased cost of working (using alternative equipment or outsourcing) during the repair period.
Contractor Plant and Machinery Insurance
Construction and engineering contractors in UAE typically own or lease significant amounts of mobile plant and equipment — excavators, cranes, compactors, generators, and similar. This equipment requires its own insurance against accidental damage, theft, and third-party liability arising from its operation — separate from the project-specific CAR policy.
Gulf Oasis Insurance Brokers has specialist expertise in engineering insurance for UAE contractors, project developers, and industrial operators. We work with engineering-focused underwriters at Lloyd's and international insurers to structure comprehensive programmes that reflect the specific nature of each client's operations.