With Erection All Risks policy, machinery is covered during the course of site erection from the time of arrival at site, during storage through handling, erection, commissioning to final testing and during any prescribed subsequent maintenance period. The policy is written on an “all risks” basis and cover includes :-

  • Fire and allied perils.
  • Accidental damage.
  • Collapse, collision, impact, theft, malicious damage.
  • Damage due to faults in design, materials, workmanship.
  • Electrical and mechanical breakdown and explosion during testing.
  • Maintenance.

The sum insured should reflect the contract value in respect of machinery. The policy is subject to either one excess or :-

  • Basic.
  • Major perils.
  • Commissioning/testing/maintenance excesses.

By extension, the cover can include contractor’s plant and equipment in use in pursuance of the contract. The policy can also be combined with a Contractors All Risks policy where there is an element of Civil Engineering Work.