Erection All Risks Insurance

The ‘Erection All Risks’ Policy is a comprehensive insurance which provides complete protection against the different types of risks associated with the erection, testing and commissioning of machinery, plant and equipment during the construction stage.

It provides cover for projects being erected against accidental loss of or damage including fire, natural perils and theft.  The policy also provides cover against third party claims for injury/death and property damage.

The sum insured should be for the contract price, ie., it should not be less than the completely erected value of the property inclusive of freight, customs duty and erection cost.


  • Third party liability
  • Surrounding property
  • Cross liability
  • Cost of removal of debris
  • Express freight, overtime charges/ air freight
  • Owner’s surrounding property
  • Extended maintenance

Length of contract:

Coverage begins from the commencement of work or after unloading of the first consignment at the project site, whichever is earlier. It terminates on the handing over of the works to the owner or on expiry of the policy, depending on which comes first.

Erection All Risks insurance covers testing, commissioning and maintenance periods as well.