Engineering insurance covers specified construction, installation, machinery, and equipment risks through specialised products. Examples include contractors all risks insurance and machinery breakdown cover. Each product has a defined subject matter, coverage period, exclusions, and approach to testing or operational damage.
For a hydropower or building project in Nepal, distinguish construction-stage protection from cover after commissioning. Project value, terrain, equipment, and third-party exposures influence underwriting. Mechanical wear and routine maintenance are not automatically insured, even when the policy protects expensive engineering assets.