Erection of All Risks Insurance Policy

Erection of all risks insurance policy covers loss or damage to projects that involves erection/installation of plant, machinery and equipment ranging from erection of a single machine to a large power plant. The main purpose of the work being carried out is the erection, installation and commissioning of plant and machinery. Associated building work is included in the policy (e.g. construction of a plant room or laying of foundations). There is an emphasis on mechanical testing and commissioning of new plant once installed.

The policy can be extended to cover periods of commissioning in excess of one month. Where the contractor is working on existing plant and machinery for the purposes of repair or maintenance, cover can be extended to include this custody property to the extent required by the contract. This is subject to additional terms and conditions. Overall, the main risk is associated with the handling and commissioning aspects of the risk, with limited exposure to environmental perils