Engineering & CAR Kenya 2026 Complete Guide

Contractors All Risks (CAR), Erection All Risks (EAR), Plant & Machinery, and machinery breakdown cover for construction and engineering projects.

Engineering insurance protects construction and engineering projects against physical loss, damage, and liability during the construction, erection, and commissioning phases.

Whether you're building roads, bridges, housing estates, industrial plants, or installing machinery, Precise Insurance Agency compares quotes from leading providers — Jubilee, Britam, CIC, APA, ICEA LION, Sanlam Allianz, and more.

Engineering insurance covers the works, materials, plant, equipment, and third party liability — ensuring your project is protected from start to finish.

Did you know? Most major construction contracts in Kenya require CAR or EAR insurance before site work begins. It's often a condition of financing and contract approval.

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Engineering & CAR Insurance Kenya — Construction Cover
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Contractors All Risks (CAR) Insurance

Comprehensive cover for civil engineering and building projects.

What it covers

  • The works under construction — buildings, bridges, roads, dams
  • Construction materials and supplies at site
  • Plant, equipment, and machinery on site
  • Third party liability for injury or property damage
  • Loss or damage from fire, floods, storms, theft, collapse, and more

Who needs it

  • Main contractors and developers
  • Subcontractors and project managers
  • Government and municipal projects
  • Commercial and residential developments
  • Infrastructure projects — roads, bridges, pipelines
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Erection All Risks (EAR) Insurance

Protection for plant and machinery installation

  • What it covers: Erection, installation, and testing of plant, machinery, and steel structures .
  • Projects: Factories, power plants, steel frames, cranes, conveyor systems, and large equipment.
  • Key benefits: Covers during erection, testing, and commissioning phases.
  • Who needs it: Engineering firms, equipment suppliers, project managers, and industrial developers.

Note: CAR and EAR are often combined in a single policy for projects involving both civil works and equipment installation.

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Plant & Machinery Insurance

Protect your heavy equipment and construction plant.

What it covers

  • Excavators, bulldozers, graders, and earthmoving equipment
  • Cranes, hoists, and lifting equipment
  • Concrete pumps, mixers, and batch plants
  • Compressors, generators, and welding equipment
  • Covers fire, theft, vandalism, accident, and overturning

Who needs it

  • Construction companies and contractors
  • Plant hire and equipment leasing firms
  • Mining and quarrying operations
  • Infrastructure and civil engineering projects
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Machinery Breakdown Insurance

Protect your critical equipment

  • What it covers: Sudden and unforeseen breakdown of machinery due to mechanical or electrical failure .
  • Examples: Generators, transformers, pumps, motors, compressors, and production machinery.
  • What's included: Repair or replacement costs, overtime labour, and expediting expenses.
  • Who needs it: Manufacturers, factories, processing plants, hospitals, hotels, and any business reliant on machinery.
  • Key benefit: Covers breakdowns that are not covered under standard property policies.
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What's Covered & What's Not

Covered

  • Fire, lightning, explosion, and natural disasters
  • Flood, storm, and earthquake damage
  • Theft and malicious damage
  • Collapse and subsidence
  • Accidental damage during construction or erection
  • Third party liability — injury and property damage
  • Machinery breakdown and electrical failure

Not Covered (Exclusions)

  • Wear and tear, gradual deterioration, and corrosion
  • Faulty design, workmanship, or materials
  • Wilful misconduct or gross negligence
  • War, terrorism, and nuclear risks
  • Consequential losses — loss of profit, delay penalties
  • Damage to property not forming part of the works

Note: Always read your policy carefully. Some exclusions may be removed with additional premium.

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Engineering Claims Process

  1. Notify your insurer immediately — Report the incident as soon as possible. Delayed reporting can lead to claim rejection.
  2. Preserve evidence — Do not repair or move damaged equipment until the insurer's surveyor has inspected.
  3. File necessary reports — Obtain police reports for theft or vandalism, and incident reports for accidents.
  4. Arrange survey — The insurer will appoint a surveyor to assess the damage and determine the cause.
  5. Submit documentation — Claim form, invoices, contracts, maintenance records, and survey report.
  6. Settlement — The insurer processes compensation based on the assessed loss and policy terms.

Timeline: Simple claims can be processed in 2-4 weeks. Complex claims involving large equipment or legal liability may take longer.

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Top Engineering Insurance Providers 2026

Leading insurers for engineering and construction projects.

Jubilee Insurance

Strong engineering portfolio with expertise in large infrastructure projects. Comprehensive CAR, EAR, and machinery breakdown cover.

Britam

Flexible engineering policies with competitive rates. Known for fast claims handling and strong project risk assessment.

CIC Insurance

Large market share with strong construction sector presence. Good for both small and large-scale projects.

APA Insurance

Specialist engineering insurer with technical expertise. Offers tailored solutions for complex engineering risks.

ICEA LION

Established engineering insurer with strong corporate and infrastructure project experience.

We compare all these providers — you get the best coverage at the best rate.

Get an Engineering Insurance Quote

Compare CAR, EAR, Plant & Machinery, and Machinery Breakdown cover from leading insurers.

We'll compare rates from Jubilee, Britam, CIC, APA, ICEA LION, Sanlam Allianz and more to find you the best cover.

Thank You for Your Request!

Your engineering insurance quote request has been received. We'll get back to you within 24 hours with options from top insurers.

For immediate assistance, call +254 726 439 278

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Frequently Asked Questions

CAR insurance covers construction projects against loss or damage to the works, plant, equipment, and third party liability during the construction period. It protects contractors, developers, and subcontractors.
CAR covers civil engineering and building projects (roads, dams, buildings). EAR covers the erection, installation, and testing of plant, machinery, and steel structures (factories, power plants, steel frames).
While not legally mandatory, CAR and EAR insurance are often required by clients, lenders, and government contracts. Most major construction contracts in Kenya mandate insurance before site work begins.
It covers physical loss or damage to the works, construction materials, plant and equipment, and third party liability for injury or property damage arising from construction activities.
Common exclusions include wear and tear, faulty design, wilful misconduct, war and terrorism, nuclear risks, and consequential losses like loss of profit. Always read your policy.
Premiums typically range from 0.5-2.5% of the contract value depending on project type, duration, location, and risk factors. Large infrastructure projects may have negotiated rates.
Plant & Machinery insurance covers heavy equipment like excavators, bulldozers, cranes, and generators against fire, theft, vandalism, accident, and overturning. It's essential for construction firms and plant hire companies.
Notify your insurer immediately, preserve evidence, file necessary reports, arrange a survey, submit documentation (claim form, invoices, contracts, survey report), and await settlement. We'll guide you through the process.