Erection All Risk Insurance

Erection All Risk Insurance for Construction Projects 

Erection All Risk Insurance is a specialized coverage designed to protect construction and installation projects during critical stages such as assembly, erection, and commissioning. It is particularly important for large-scale projects that involve heavy machinery, industrial plants, or complex infrastructure setups.
This policy covers a wide array of risks, including accidental damage, theft, natural calamities, and other unforeseen events that may occur during the erection phase. By offering protection against these risks, the policy ensures that stakeholders—including contractors, engineers, and developers—are financially safeguarded during the vulnerable stages of project execution.
Whether it’s machinery breakdowns, damage from weather conditions, or accidents during installation, Erection All Risk Insurance minimizes potential disruptions, ensuring that the project proceeds smoothly and without costly delays. With this comprehensive coverage, professionals can focus on completing their projects efficiently while maintaining financial security against unexpected challenges.

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.
This specialized policy safeguards the project from unexpected events, minimizing disruptions and ensuring smooth progress. By covering potential setbacks, it enables stakeholders to focus on completing the project efficiently without worrying about unforeseen financial losses, providing peace of mind throughout the critical stages of construction and installation.

Who needs Erection All Risk Insurance? 

This policy is essential for contractors, engineers, developers, and stakeholders involved in large infrastructure projects such as power plants, industrial installations, and commercial construction. It also protects financiers and third-party investors who have a financial stake in the project.

Why do you need Erection All Risk Insurance? 

Erection All Risk Insurance is essential for protecting the financial health of projects during high-risk stages like erection and installation. It provides coverage for accidental damage, theft, and natural disasters, ensuring that unforeseen costs do not disrupt progress.
By addressing these potential risks, the insurance helps protect stakeholders, including contractors and developers, from financial setbacks. With this comprehensive coverage, projects can continue smoothly, minimizing delays and maintaining financial stability, allowing for the successful completion of the project without the worry of unexpected incidents.

Key Features of Erection All Risk Insurance? 

Erection All Risk Insurance offers a comprehensive package that protects projects from a range of potential risks. Below are the key features of the policy:

What does Erection All Risk Insurance Cover? 

Erection All Risk Insurance covers a wide range of risks, including:

●      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 

Erection All Risk Insurance can be enhanced with additional add-ons to further protect your project. These include:

What is not covered in Erection All Risk Insurance? 

Erection All Risk Insurance does not cover:

●      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.

Add-ons

• Act of terrorism
• Earthquake
• Third party Liability
• Limited & Extended maintenance cover
• Clearance and removal of debris
• Damage to owner’s surrounding property
• Escalation
• Loss or damage due to strike, riot and civil commotion (SRCC)
• Suspension of Testing
• Fire Fighting
• Automatic Increase Clause
• Declaration Clause
• Cross Liability
• Express freight, holiday and overtime rates of wages
• Contractor’s plant and machinery
• Inland Transit and many more