Sites for the erection of Machinery like Electricity Generators, Water treatment plants, Desalination plants, Elevators, etc are very busy throughout the erection period and while the Engineers, Foreman and site supervisors are trying their best to ensure safety in all respect accidents minor or major do occur. If these sites are not adequately insured, the accidents would result in devastating losses to Contractors or their principals.
Maintenance Period Risks
Once the Erection works, including testing and commissioning, covered under the EAR policy is completed the maintenance period cover comes to effect automatically. During this period the cover is against any loss &/or damage that occurs in the course of the compliance with the maintenance obligation under the contract insured/contractorâ€™s provided the cause of such loss or damage originated during the period of insurance.
The premium chargeable is always applied on the basis on the Total Contract Value for the period of the contract and on the value of the Construction Plant & Machinery being used at the site. The rates are very dependent to the nature of the project, site location, experience of the Contractor and other relevant risks determinations. There is a Deductible and Conditions to the policy.
Erection All Risks Insurance which is in two sections provides coverage as follows:-
All Risks Covers
This section provides coverage for losses/damages to principals and contractor/subcontractors own material and erection works from a variety of risks such as:
Third Party Legal Liability
This section of the policy, with agreed limits, provides indemnity to third party due to the Legal liability of the insured resulting from negligence of the insured or his employees/family members causing :