All projects involving storage of equipment, moving or expanding a facility, or
dismantling and re-constructing it, leave your organisation open to significant
risk.
HDFC ERGO’s Erection All Risk Insurance assures protection to you against this
kind of scenario. The comprehensive nature of its coverage makes it the ideal solution
for diverse needs, whatever the risk you want to insure.
This policy is 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 policy can be extended on payment of an additional premium to cover:
- Earthquake
- Act of terrorism
- Escalation
- Limited maintenance cover
- Extended maintenance cover
- Clearance and removal of debris
- Damage to owner’s surrounding property
- Third party liability
- Cross liability
- Additional customs duty
- Express freight, holiday and overtime rates of wages
- Contractor’s plant and machinery
When this policy is combined with transit insurance (either inland or overseas)
for project materials, the same is referred to as Marine-cum-Erection policy.
The Sum Insured is the completely erected value of the plant and machinery, inclusive
of freight, customs duty and cost of erection.
The premium under this policy depends on the type of activity, Sum Insured, duration
of the project, period of testing and voluntary excess opted for by the Insured.
The premium can be paid in installments, when the policy period is more than 12
months.
The policy has the following types of excess:
- Excess due to normal perils
- Excess during testing activity
- Excess for Act of God perils like earthquake, flood, storm, etc.
- Excess due to fire and explosion perils
- Excess due for terrorist acts, if terrorism cover is opted for
Excesses under the policy depend on the type of project to be erected.
This policy does not cover loss or damage arising from:
- Faulty design, defective material, bad workmanship
- Consequential loss, inventory loss
- Normal wear and tear, etc.
- Deductible as stipulated in the tariff
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