Erection All Risks Insurance
This policy is similar to the Contractor’s All Risk insurance but is mainly intended to cover projects for the erection of mechanical, electrical and chemical engineering projects in which plant and machinery are involved and where special hazards exist during testing and commissioning operations such as:
Additionally, the policy coverage includes all sums that you as a principal or contractor may become legally liable to pay as compensation for bodily injury or property loss sustained by any third party in relation to the erection of your machines.
It also covers the legal liability of the Insured against third party. Such policy can be purchased by the Contractors, Supplier, or the Customer. The following is excluded from the Erection All Risk Insurance:
- Willful acts, negligence
- Normal wear and tear
- Faulty design, defective material or casting, bad workmanship
- War, armed conflicts, terror
- Nuclear reactions
- Consequential loss