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Insurance for Installation, Commissioning & On-Site Engineering Risk
Installation and commissioning work represents one of the highest-risk phases of any engineering or manufacturing project. Equipment that has been safely designed and built can still fail, cause damage, or trigger contractual claims during delivery, installation, testing, or handover. On-site environments introduce additional hazards — unfamiliar premises, third-party activity, live systems, tight deadlines, and contractual penalties.
Installation, Commissioning & On-Site Risk Insurance from Insure24 is designed for engineering and manufacturing businesses that carry responsibility beyond the factory gate. Whether you install machinery, commission production lines, integrate electrical or mechanical systems, or test equipment on client premises, your insurance must extend to these high-exposure activities.
As a specialist FCA-regulated commercial insurance broker, Insure24 structures cover that reflects real-world installation risk — not just static manufacturing operations.
Who This Insurance Is Designed For
- Engineering manufacturers installing their own equipment
- Electrical & mechanical installation contractors
- Production line and machinery installers
- Commissioning and testing engineers
- Automation, robotics and control system installers
- OEMs responsible for on-site commissioning
- Manufacturers offering turnkey supply & install contracts
- Engineering firms working on live client sites
Why Installation & Commissioning Risk Requires Specialist Cover
Many standard manufacturing or engineering insurance policies focus on risks at your own premises. However, once equipment leaves your factory and is installed on a client’s site, the risk profile changes significantly. Damage can occur during unloading, positioning, connection, calibration, testing, or trial operation.
Installation and commissioning activities may expose your business to:
- Damage to client property or existing plant
- Injury to third parties during installation works
- Failure of systems during testing or commissioning
- Delay penalties and contractual claims
- Rectification costs following commissioning failure
- Disputes over responsibility between contractors
Without correctly structured insurance, these risks can fall into gaps between public liability, product liability, contract works, and professional indemnity policies.
Core Covers for Installation & On-Site Risk
- Public Liability (On-Site Work) – Injury or property damage arising from installation and commissioning activities.
- Employers’ Liability – Cover for employees working on client sites (UK legal requirement).
- Contract Works / Installation All Risks – Damage to works in progress during installation and testing.
- Products & Completed Operations Liability – Claims arising after handover or commissioning.
- Professional Indemnity – Design, specification, commissioning or testing errors.
Installation All Risks / Contract Works Insurance
Installation All Risks (often referred to as Contract Works insurance) provides cover for physical loss or damage to plant, machinery, or systems during installation, erection, and commissioning.
- Damage during unloading and positioning
- Accidental damage during installation
- Failure during testing or commissioning
- Fire, flood or impact damage on site
- Loss before practical completion or handover
This cover is especially important where contracts place responsibility for equipment on you until final commissioning or sign-off.
Liability Risks During Installation & Commissioning
- Third-Party Property Damage – Damage to existing machinery, buildings or infrastructure.
- Injury to Site Personnel – Including client staff, subcontractors or visitors.
- Interface Risk – Interaction with other contractors’ work.
- Live Environment Risk – Working on operational sites or live systems.
- Testing & Commissioning Failures – System malfunction during trials.
Contractual & Commercial Risk
Installation and commissioning contracts frequently include clauses that significantly increase risk exposure, including liquidated damages, performance guarantees, fitness-for-purpose obligations, and extended liability periods.
Insurance must be structured with these contractual obligations in mind. Failure to align policy wording with contract terms can leave businesses exposed even when they believe they are insured.
Insure24 reviews installation and commissioning risk holistically — helping ensure your insurance programme supports, rather than undermines, your contractual commitments.
Common Installation & Commissioning Claim Scenarios
- Equipment damaged during lifting or positioning
- Fire caused during electrical commissioning
- Flood damage during testing of systems
- Control system failure causing plant shutdown
- Incorrect commissioning leading to product loss
- Injury to client staff during installation works
- Dispute over responsibility between contractors
Why Choose Insure24 for Installation Risk Insurance?
- Specialist engineering & manufacturing insurance expertise
- Experience with installation and commissioning exposures
- Access to insurers who understand on-site risk
- Policies aligned with engineering contracts
- FCA-regulated UK brokerage
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FREQUENTLY ASKED QUESTIONS
+-What is installation and commissioning insurance?
It covers risks arising while installing, testing and commissioning equipment on client sites, including damage to works, third-party liability and contractual exposure.
+-Is public liability enough for installation work?
Often not. Public liability alone may not cover damage to the works themselves or commissioning failure.
+-Do manufacturers need installation insurance?
Yes, if they install or commission equipment, or retain responsibility until handover.
+-Does this cover testing and trial operation?
Yes, subject to policy terms. Testing and commissioning phases can be included.
+-Is professional indemnity required?
If you design, specify or commission systems, professional indemnity is strongly recommended.
+-Can this cover overseas installation projects?
Yes, subject to territory, contract terms and insurer approval.