An Erection All Risk insurance offers protection to Principals, contractors & sub-contractors as well as manufacturers and suppliers who erect such plant and machinery against any unforeseen events resulting in financial loss during the course of such project works. The policy affords protection to property insured at the project site whilst being stored, erected, tested and commissioned as well as during maintenance visits.
WHO SHOULD BUY
Principals and/or contractors, manufacturers & suppliers of plant and machinery engaged in erection projects such as erection of Power plants, fertilizer plants, oil refineries, installation of computers and electronics as well as erection of plant and machinery at factories
Subcontractors can also be added as a named party in the policy.
KEY FEATURES OF THE POLICY
The policy covers damage to project works due to fire, lightning, theft, burglary & housebreaking, natural calamities like earthquake, flood, inundation, storm, tempest, hurricane, subsidence, landslide, rockslide, Carelessness, Negligence, Faults in Erection/Construction, Strike & Riot, Malicious damage, Terrorism
Testing and commissioning stage: Failure of safety devices, leakage of electricity, insulation failure, short circuit explosion risks are covered at this stage.
The policy starts right from the time the project materials arrive at the site and continues during storage, physical erection, testing, commissioning & until the project is complete and handed over.
Third parties, including subcontractors might get injured while working at the site or while passing by the site, explosion, short circuit leading to fire spreading to a surrounding property during testing phase pose additional risks to third parties, all these risks are covered under the Third-party liability section of a EAR Policy.
KEY EXCLUSIONS
• War & Allied perils
• Cessation of work
• Wilful acts or negligence of the insured
• Normal wear & tear and gradual deterioration
• Losses discovered at the time of stock-taking.
• Losses/damage due to faulty design, defective material or casting other than faults in erection.
• Consequential loss or liability of any kind
