Erection All Risk Insurance Policy

Features & Benefits

Requirements
The long process of erecting a whole building structure requires time and a lot of hard work. Besides the construction, there is equipment and machinery that need to be set up, tested and installed for a construction plant to successfully function. So, as the process involves several steps and equipment and people working on establishing a complete building, structure or plant, there are also several risks and threats involved. Our Erection All Risk policy works to protect you and your resources from the start to finish of the process of erecting a new structure. The policy covers risks for a variety of projects including power plants, water and wastewater treatment facilities, manufacturing factories and tele communications centres.

Benefits
The Erection All Risks policy covers not just the structure and its processes, but all the different parties involved in the erection work like the contractors and investors. The policy protects against damage to the machinery being installed, including those for storage, testing and commissioning. The coverage under the policy lasts until the duration of the project concludes and before it is handed over to the owner.

Sum Insured
The sum insured is equal to the total value of the project including the cost of erection, buildings or the plant and the machinery, along with customs duty and the freight charges.

Premium
The amount of the premium you shall pay will depend on the type of project, its overall value and the duration it lasts for comprising the period of testing.

Eligibility
You can buy the Erection All Risk Insurance Policy if you are directly involved in an erection project as a financer, contractor, subcontractor or the purchaser or owner of the project.

Main Inclusions
Our Erection All Risks policy, as the name suggests, cover you from All Risks, which may be sudden and unforeseen losses or damages to insured property. This policy also provides protection to the machinery while in use, being installed or in storage, from accidents and natural hazards like hurricanes. The coverage begins from the very time that the consignment of machinery is first unloaded at the project site and lasts until the erection of the project is completed and handed over to the owner or purchaser.

You can extend the policy cover by paying extra premium from the following risks:

Escalation
Maintenance
Clearance and removal of debris
Damage to the owners surrounding property
Third party liability
Additional customs duty
Express freight
Holiday and overtime rates and wages
Earthquake
Terrorism
For those looking to extend the Erection All Risk Insurance Policy to cover inland/ overseas project materials, LGI offers a combination of transit insurance and Erection all risk policy on project materials, to provide a single Marine-cum-Erection policy for all-inclusive coverage.

Main Exclusions
The policy has a few named excluded perils or specific risk exceptions that will not be covered under the insurance. The policy will not indemnify the insured in cases of loss, damage or liability arising from or aggravated by one of the following risks:

Willful acts or negligence of the insured or the carelessness of his responsible representative.
Inventory losses discovered only at the time of taking an inventory.
Defective design, material, bad workmanship or faulty casting leading to a loss or damage in erection.
Wear and tear or gradual deterioration as a result of atmospheric conditions including rust, scratching of painted or polished surfaces or breakage of glass etc.
Work cessation, whether total or partial.
War and war-like events including invasion, hostilities, act of foreign enemy war like operations, civil war, revolution, rebellion, insurrection, civil commotion, mutiny, military or usurped power, martial law, confiscation, conspiracy, persons acting in connection with any political organization, commandeering a group of malicious persons, requisition or destruction by order of any government de jure or de facto or by any public, local or municipal authorities.
Nuclear events or nuclear reaction, nuclear radiation or radioactive contamination.