Concept: To provide necessary protection to the Owners/Suppliers & or the Contractors, executing a project involving erection of machinery, Plant or Steel structure) which suffers sudden and unforeseen physical loss or damage during the period of erection/ testing/ commissioning or its maintenance, necessitating its repair, replacement or reinstatement.
Scope of Cover: The policy indemnifies the Insured named in the policy for monetary losses suffered by the insured as a result of loss or material damage to the insured Project (Being the Erection Works & all other property insured in connection therewith) up to the full Sum Insured, on an All Risks basis. The policy also provides indemnity towards Third Party Claims (for Bodily Injury or Property Damage) up to the Limit chosen and specified under Section II of the Policy.
Interest Covered: The "Project" would include all "Erection Works", (i.e. full cost of items to be erected), all temporary and permanent works to be executed in performance of the "Project" including associated on site, in storage and transit. In addition, other Property belonging to the Owners (Principals Existing Property-PEP); Erection Equipment and Machinery, at the Erection Site are also coverable. Reasonable costs, in the event of a claim, for "Debris Removal", Surveyors/Consultants Fees" etc. Can also be covered. The Policy is operational till testing and commissioning as to be specified in the schedule. The Policy can be extended to cover 12 months maintenance on successful completion.
Premium Rating: Rate per thousand on total contract value is charged depending on nature and type of erection works, extent and period of coverage, deductibles agreed, claims experience of contractor, method of operation, conditions at the work site, type of equipment.
War or Warlike operations
Willful negligence or willful acts
Nuclear reaction, radiation or contamination
Consequential losses of any kind.
Losses due to delays, Fines and Penalties
Loss or damage to Construction/Erection
Machinery due to Electrical or Mechanical Breakdown etc.
Sabotage & Terrorism exclusion