Erection All Risk Insurance


What is Erection’s all risk insurance?

 

In either capacity as a principal or as a contractor, this policy protects your financial investment in a project. A policy can be obtained either individually or jointly by the Principal, Contractor, and Subcontractor.

 

What is covered?

 

This policy covers all potential risks that may arise during the erection or testing period. In the event of an accident, it offers financial protection to the engineering contracts. An Erection All Risk policy is designed to cover the erection and testing of manufacturing units as well as individual machines. Legal liability that may arise as a result of the project activity during the policy period is also covered. EAR coverage can be obtained for the duration of the project starting with the arrival of materials at the site and continuing until testing and commissioning of the project is complete. It covers all physical losses and damages arising from:

 

Location Risks

Lightning, Fire, Burglary, Theft, Housebreaking.

Handling Risks

Struck by falling objects, collided with other objects, crane or tackle failure, etc.

Testing & Commissioning Risks

Defects in safety devices, electricity leakage, insulation failure, short circuit, explosion (applies to EAR Policy only).

Acts Of God

Storms, tempests, hurricanes, floods, inundations, subsidence, landslides, rockslides, and earthquakes.

What is not covered?


Inventory Losses

Policy Excess

Wilful Act/ Negligence

Consequential Losses

War and nuclear group of perils

Wear and tear, gradual degradation, and corrosion

Damage to files, drawings, accounts, bills and currency

Loss or Damage due to faulty Design, Defective Material

Penalties for non-fulfilment of contractual obligations

Cost of rectification and correction of any error during erection not resulting in physical loss or damage

Defects in appearance, scratching on painted surfaces or breakages of glass

*Kindly go through the policy for complete list of exclusions*

What can be covered after paying additional premium?

 

The coverage can be extended by paying an additional premium. Major optional extensions available are:

 

  • Air Freight
  • Express Freight, Holiday and Overtime Wages
  • Additional Customs Duty
  • Escalation
  • Storage Risk at Fabricators Premises
  • Clearance and Removal of Debris
  • Terrorism
  • Third Party Liability
  • Cross Liability
  • Contractors Plant & Machinery up to specified limits
  • Owner’s Surrounding Property

 

*The information provided above is only a summary of the product features and does not cover the entire policy terms, conditions, and exclusions. Refer to the policy wordings for further details or clarifications.*

FAQs

The policy can be taken by any individual or organisation as Principal or Contractor of a project. It can be taken in joint names also.

Yes, it is a mandatory policy for all parties involved in any kind of construction i.e. General contractors, Subcontractors, Suppliers and manufacturers of equipment, Purchaser or owner.

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