Engineering Insurance

Engineering insurance began to develop in England around the 19th century amidst the Industrial Revolution, that had been triggered by the inventions of steam boilers and steam engine. The increasing use of steam boilers and steam engines led to machine-based production in factories.  Along with these developments, the corollary of explosion of steam boilers originated as new types of property damage and personal injuries in the factories and adjacent premises.

Eventually the Manchester Steam Users Association founded by British boiler operators with the aim of regularly inspecting steam boilers for deficiencies and advising improvements came into being in the second half of the 19th century.  Experts in the field of erection and commissioning of machinery considerably contributed to the decline in losses due to boiler explosions.  Very soon, the concept of insurance protection against property damage and personal injuries in industrial establishments gained momentum giving birth to the Steam Boiler Assurance Company in Manchester.  Within a few years, the Hartford Steam Boiler Inspection & Insurance Company came into being in the United States which has emerged to be the largest insurance and inspection company for engineering risks in that country.

The process of industrialisation was accelerated by many inventions in the 19th century giving rise to the growth and evolution of engineering insurance.  These inventions included Petrol, Diesel and Gas Engines, Water and Steam Turbines, Generators, Transformers and Electric Motors leading to the evolution of Power and Energy industry.

Engineering Insurance include, in the present day, the following among others:-

4. Loss of Profits following MBD (MBLOP).
5. Contractors Plant & Machinery (or Equipments) Insurance (CPM/CPE).
6. Boiler and Pressure Vessel Insurance (BPV).
7. Electronic Equipment Insurance (EE).
8. Deterioration of Stock in Cold Storage Insurance (DOS).