The Erection All Risks policy is a comprehensive insurance, which provides complete protection against all types of risks associated with erection, testing, commissioning of machinery, plant and equipment during constructional stage. This cover can be taken jointly by the owner/ principal covering the interest of all other parties like main contractor, sub contractor, financial institution, bank etc.,
Erection All Risks Insurance embraces a wide variety of plant and machinery at all levels of complexity, ranging from the relatively straight forward positioning and connecting up of single manufactured items of equipment such as small pumps or electric motors to complete a major industrial complex such as a large power station or manufacturing facility.
The cover starts from the time of arrival of first consignment at site, normal storage and thereafter during erection, testing, commissioning until the plant is successfully commissioned and handed over.
Basis of Sum Insured:
The Sum Insured for the insurance should not be less than the end value of a completely erected property inclusive of freight, customs duty and erection cost. Basically, insurance should be for the contract price.
What it covers
The policy cover consists of two (2) sections, namely:
Section 1 - Material damage
Section 2 - Third party liability for bodily injury and property damage
Section 1 could be extended to cover:
Principals existing property
Removal of debris
Construction plant, equipment and machinery
Riot and strike
For further details please contact our Union Assurance Advisor or contact us directly on 112 428 428.
Note : Please refer Policy Conditions for further clarifications.