All projects involving storage of equipment, moving or expanding a facility, or dismantling and re-constructing it, leave your organization open to significant risk. The Erection All Risk Insurance assures protection against such risks. The comprehensive nature of its coverage makes it a suitable solution for businesses with diverse needs.
The Erection All Risk Insurance Policy assures protection against such risks. The comprehensive and exhaustive nature of its coverage makes it a suitable solution for businesses with diverse needs.
This policy is a typical ‘all risk’ insurance for storage, assembly/erection, testing and commissioning of the following types of activities. Unless specifically excluded, it provides comprehensive cover for:
- Setting up a new project/individual machines
- Expansion of an existing project
- Dismantling and re-erection of an existing facility
- The interests of suppliers, manufacturers, contractors as well as Subcontractors can be included in the policy.
- Cover begins from the time of unloading of the first consignment at the project site and terminates on completion of testing or handing over of the project to the principal, or the period chosen, whichever is earlier.
- The Erection All Risk Insurance Policy is generally recommended for businesses involved in construction. These include –
- Contractors and Sub-contractors
- Suppliers or manufacturers of construction equipment
Features of Erection All Risk
- Comprehensive Coverage
- An Erection All Risk Insurance Policy can provide comprehensive coverage against a number of eventualities including –
- Natural calamities like floods, storms, cyclones, landslides, etc.
- Other eventualities like fire, explosion, lightning, etc.
- Human errors, negligence.
- Damages caused in a riot, in a strike, or any malicious acts.
- Burglary and theft
- Faulty construction
- Impact damage
- An Erection All Risk Insurance Policy can provide comprehensive coverage against a number of eventualities including –
- Coverage duration is flexible
- Coverage under an Erection All Risk Insurance Policy is provided not on an annual basis but on a project basis – this means that a project will never run out of protection.
- Available Extensions and Add-ons
- An Erection All Risk Insurance Policy can provide several add-on benefits to the insurer, at an additional premium. These include –
- Third-party liabilities
- Any additional custom duty
- Cost of damage to surrounding property
- Overtime charges
- Maintenance costs
- Air and Express Freight
- Cost of removal of debris
- An Erection All Risk Insurance Policy can provide several add-on benefits to the insurer, at an additional premium. These include –
Contractor’s All-Risk Insurance Policy
A civil construction site is susceptible to incidents like pilferage, theft, damage, legal claims, etc. We understand that contractors are required to ensure the completion of a civil construction project within a stipulated deadline. A Contractor’s All Risk Insurance Policy comprehensively covers risks including the physical loss or damage to property, plant, machinery, and tools, works brought on to the site, and temporary works erected on-site, as well as third-party liability related to work conducted on the site.
Coverage begins from the commencement of work or after unloading of the first consignment at the project site, whichever is earlier, and terminates on handing over of the works to the principal or on expiry of the policy.
Coverage can be extended to include the interest of suppliers / manufacturers, contractors and Subcontractors.
Advance Loss of Profit
Factory operations stand the risk of delays due to damaged machinery. This damage to machinery not only hampers operations but also leads to loss of profit. The Advance Loss of Profit Insurance is a protection solution that is designed to cover losses occurring due to delay/halt in operations. This protecting solution is designed for Principles and needs to be concurrent with Material Damage Project Insurance.
Features of Advance Loss of Profit
The Advance Loss of Profit Insurance Policy has the following features –
- Loss of profit due to reduced turnover
When a company loses on net profit due to a reduction in its turnover and this reduction is caused due to damaged machinery – an Advance Loss of Profit Policy will cover the costs borne by the business. - The increased cost of working
Damaged machinery could lead a business to resort to using manual labor – which will cost a lot more to a business than usual. An Advance Loss of Profit Policy will cover such extra expenses. - Standing charges
Even though operations might have stopped due to material damage, a business will have to pay standing charges which will continue to accrue in spite of business interruptions. These include factory rent, wages, etc. An Advance Loss of Profit Insurance Policy will be able to cover such additional costs. - Any additional expenses
Any other expenses that may be necessary to maintain a working factory or a normal business are covered by an Advance Loss of Profit Insurance Policy.
Contractor’s Plant & Machinery Insurance Policy
Construction sites heavily rely on machinery used for day-to-day operations. This includes jobs like hauling and moving material, excavating earth and debris, round-the-clock generation of power etc. A Contractor’s Plant and Machinery Insurance Policy is a hassle-free protecting solution that covers your machinery, minimizing repair costs.