Erection All Risk Insurance
What is Erection All Risk Insurance?
Erection All Risk Insurance offers comprehensive protection for construction projects during the erection, installation, and commissioning phases. It covers a range of risks, including material damage, theft, and third-party liabilities, ensuring financial protection for contractors, engineers, and developers.
What do you need Erection all risk insurance?
Errection all risks insurance
- Any contingency during unloading at the project site
- During storage, physical construction/erection
- During test run and maintenance if covered.
- Covers all physical losses or damages.
What does Erection All Risk Insurance Cover?
- Material Damage: Protection against physical damage to machinery, structures, and equipment during assembly and erection. Theft and Burglary: Coverage for the theft of materials and equipment during the project phase.
- Natural Calamities: Protection against damages caused by floods, earthquakes, or storms.
- Accidental Damage: Coverage for any accidental damage during the erection and installation process.
- Third-Party Liability: Ensures coverage for injuries or property damage caused to third parties due to project activities.
- Testing and Commissioning: Provides protection during the trial runs or testing phases, ensuring comprehensive coverage across all project stages.
Add-on covers under Erection All Risk Insurance
Addons
- Loss of Profit
- Transit Insurance
- Owner’s Damage
- Extended Warranty
What is Not Covered in Erection All Risk Insurance?
● Defective Design or Workmanship: Losses caused by faulty design, materials, or workmanship.
● Wear and Tear: Damage due to gradual deterioration or corrosion.
● Nuclear Risks: Damages caused by nuclear reactions or radiation.
● Consequential Losses: Indirect losses like penalties or project delays.
● War and Terrorism: Losses arising from war, terrorism, or acts of foreign enemies.
Inclusion
- Location Risks: Fire, Lighting, Theft, Burglary & Housebreaking.
- Testing and Commissioning Risks*: Failure of Safety Devices, Leakage of Electricity, Insulation failure, Short circuit, explosion.
- Act of God: Storm, Tempest, Hurricane, Flood, Inundation, Subsidence, Landslide, Rockslide, earthquake.
- Handling Risks: Impact from falling objects, Collision, Failure of Cranes or Tackles etc.
- Risk of Human Element: Carelessness, Negligence, Faults in Erection/Construction, Strike & Riot, Malicious damage, Terrorism.
- Testing Perils: Maximum value at risk.
Exclusions
- War & Allied Perils.
- Willful act or willful negligence of Insured/ his representatives.
- Excess in respect of each claim as stated in the policy.
- Normal wear and tear, gradual deterioration, lack of use, obsolescence, rust, etc.
- Any damages/ penalties on account of the Insured of the terms of delivery/ completion under his contract of construction.
- Nuclear & Allied Perils.
- Cessation of work.
- Losses discovered only at the time of taking an inventory.
- Loss/ damage due to faulty design, defective material or casting other than faults in erection.
- Consequential loss/ liability of any kind.
