Property and Misc Insurance

Erection All Risk

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
  • Inland Transit
  • Innocent Non Disclosure/Breach of Policy Conditions
  • Structures in earthquake zones
  • Serial losses
  • Manufacturer’s Risk
  • Decontamination
  • Horizontal Directional Drilling of Pipeline Routes
  • Loss or damage due to strike, riot and civil commotion (SRCC)
  • Exclusion of Horizontal Directional Drilling
  • Suspension of Testing
  • Fire Fighting
  • Public Authorities Clause
  • Work Stoppage
  • Test Run Definition for Gas Turbine
  • Test Run Definition for Steam Turbine
  • Declaration Clause
  • Marine off Shore works
  • Coffer Dams
  • 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 is subject to a compulsory excess and 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.
  • Excess as mentioned in policy