Engineering & Construction – cover for machinery, plant and equipment, installation and construction projects

Technical malfunctions, material defects and operating errors can result at any time in damage that results in plant and machinery downtimes. In the case of installation projects or on construction sites, external factors like natural hazards or fire risks exacerbate the risk exposure. HDI’s Engineering and Construction insurance solutions provide insurance for existing risks. ‘All Risks’ cover provide comprehensive insurance against property damage and business interruption losses. Project cover factors in the extensive risks involved in major construction and plant engineering projects. Policyholders in all categories have access to risk engineers from HDI Risk Consulting. They provide support to clients in the form of early identification and avoidance of potential risk situations.

Scope of services at a glance

Engineering & Construction

HDI reimburses all the necessary costs incurred to restore machinery, structures or plant and equipment to full operation after a damage event. A large number of risk situations are covered, ranging from fire to electrical shorts through to negligent conduct.

HDI machinery insurance provides cover if machinery or technical plant and equipment has to be repaired or replaced as a result of damage. Mobile and transportable machinery and construction equipment of all types can be insured against unexpected damage. Related costs, such as clean-up, disposal and salvage costs can also be covered if required.

Damage-related machinery outages can bring manufacturing operations to a halt. During periods of business interruption companies suffer financial losses, which can be insured against by adding an extra insurance component. HDI machinery/business interruption insurance specifically provides cover for loss of profits, standing charges and additional costs resulting from the accelerated restoration of operational readiness.

Insurance cover includes any costs incurred to restore damaged items to the condition they were in before damage occurred. Clean-up and recovery work can also be insured. All sub-contractors involved in a project can be included in insurance cover, provided that what they deliver and the services they render are included in the insured sum. In any event the policyholder can budget using fixed amounts rather than incurring uncertain risk surcharges.

In the event of a claim, HDI construction ‘all risks’ insurance reimburses to an agreed extent the costs required to clean up the site and restore it to the pre-loss condition. The insurance sum consists of the costs of all construction work (labour costs and the replacement value of all construction materials supplied) not including gardens and ancillary construction costs. The policyholder can also insure against damage caused by fire, lightning or explosions and loss caused by theft of project-dedicated components and materials. Nevertheless, following a damage event, principals often have to pay building contractors for services already rendered. HDI construction all-risks insurance insures principals against this cost risk.


Customer-focused technical support

Engineers with many years of professional experience in industry work for HDI as underwriters and provide support to clients on the full range of technical issues.

High level of capacity

HDI has sufficient cover capacity at its disposal to provide insurance for major projects.

Insurance cover worldwide

The performance of local contractors is covered. Companies with worldwide operations can be covered through an international insurance programme.

Access to professional claims management service

HDI provides claims management services based on experience, ranging from restriction and rectification of damage to reliable claims settlement.

Risk Consulting

Skilled risk advice and support

HDI Risk Consulting provides a cross-industry risk consulting service to help clients identify, quantify and where necessary take risk-reduction and risk-avoidance actions. Risk engineers assess technical risks, which can result from the condition and operation of machinery, and plant and equipment. Construction project advice and support is provided in line with the relevant safety and security related requirements through local inspections and central co-ordination.

Experts’ tip

Drafting emergency action plans

In the event of extreme weather conditions or an outbreak of fire, an emergency action plan facilitates taking prompt and effective damage-limitation action, thereby reducing the extent of damage or loss. Our experts can provide assistance.