Erection All Risk Insurances


Erection All Risk is a comprehensive insurance policy for risks of erection and installation of machineries, reactors, plants, turbines, transformers and steel structures.
  • It comprehensively covers wide range of unforeseen and sudden risks a project is exposed to at various stages like stoage, Erection, Testing & commissioning including but not limited to:

      • Fire, lightning, explosion, aircraft damage.
      • Riot, strike, malicious act.
      • Flood, inundation, storm, cyclone and act of god perils.
      • Landslide & Rockslide.
      • Faults in erection.
      • Short circuit.
      • Electrical and mechanical breakdown.
      • Impact Damage.
      • Burglary and theft.

It is a comprehensive all risk insurance policy and excludes losses or damages due to faulty designs, manufacturing defects, consequential losses, wilful act of negligence, normal wear and tear, mysterious disappearance of inventory, war and war like perils, and nuclear risks. The policy additionally covers expenses of expediting costs towards air freight, overtime, any additional customs duty, cost of removal of debris, maintenance/extended maintenance visits, architecture fees and escalation costs. It also provides for defense cost and actually liability in case of damages to third party and cross liability cover. Owners surrounding property and storage risks at fabricators premises can also be covered.

The policy is highly suitable and a must have for Principal or Contractor. The interest of financiers, consultants, project engineering firms, and sub contractors can also be insured along with. While what to cover is important the selection of Sum Insured and Project Period is the key to secure comprehensive project insurance solutions. The policy is also known as Storage Cum Erection policy or Marine Cum Erection policy when transit risk of machineries being installed is attached to the erection risks.


Disclaimer: The above is a broad indication. The actual available are as described in the policy wordings of the insurance company and will be subject to the policy terms, conditions and exclusions.