Contractors All Risks Insurance
This policy is designed to insure all types of civil engineering projects like buildings, dams, roads, and towers against wide range of risks related to project execution and maintenance period(s) if any.
The cover under this policy is divided into two sections:
Section 1 (Material Damage): This section covers the contract works against any unforeseen accidental loss or damage to the contract works arising out of any causes which is not specifically excluded by the policy wording.
Brief descriptions of the Perils covered are as follows:
• Accidental Damage during construction.
• Fire and lightening.
• Water damage, storm, tempest and flood.
• Collapse, collision, impact, falling of aircraft and theft.
• Riot, Strike and malicious damage.
• Subsidence, landslide, cyclone, hurricane, earthquake, volcano.
Section 2 (Third Party Liability): This section covers bodily injury and/or property damage to third party arising out of the execution of contract works.
Additional Covers: The following can be added subject to additional premium:
• Materials supplied by the principle.
• Construction Plant, Equipment & Machinery.
• Clearance of Debris.
• Existing or surrounding property.
Erection All Risk Insurance
EAR policy is designed to cover the risk of loss arising out of the erection and installation of machinery, plant and steel structures, including physical damage to the contract works, equipment and machinery, and liability for third-party bodily injury or property damage arising out of these operations.
Examples of the types of projects for which EAR coverage is typically purchased include power plants, manufacturing and fabrication facilities, water and wastewater treatment facilities, and telecommunications centers (particularly where the erection of signal towers is involved.
The period of insurance includes: period for erection, testing, commissioning and maintenance periods.
The policy is divided in two sections:
• Section (1) Material Damage and
• Section (2) Third Party Liability.
This insurance is designed for boilers in industries and factories. It provides cover for boilers and pressure vessels due to explosion or implosion. The policy also covers damage to surrounding properties and liabilities for injury to third parties or damage to third party property.
Electronic Equipments Insurance
Electronic equipments: as computers, laptop, telephone networks, medical equipment and similar equipments.
The policy has three sections:
Section (1): Material Damage: Covers the insured items against any unforeseen and sudden physical loss or damage to the insured items from any cause not specifically excluded.
Examples of Cover:
• Damage caused by operation.
• Damage caused by electric energy (short circuit, excess voltage or induction).
• Damage caused by human element (faulty operation, lack of skill, negligence).
• Damage caused by manufacturer (faulty design, defects in material, faults at workshop, faults in erection).
Section (2): External Data Media : Covers expenses for reconstruction and re-recording of information due to covered loss.
Section (3): Increased Cost of Working : Covers additional expenses incurred for the use of substitute electronic equipments due to a covered loss, subject to a maximum limit.
Maintenance Period Risks
Once the construction of the project covered under contractors all risks policy is completed and handed over to the Principal, the maintenance 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 provided the cause of such loss or damage originated during the period of insurance.
Erection All Risks Policies are issued to cover material damage and third party liability risks associated with electrical and/or mechanical engineering contract works including steel system buildings. There should be a contract awarded to the proposer to execute the engineering project. The ‘Insurance Conditions’ of such proposed contracts should be scrutinized and its compatibility with the basic cover provided under the Company’s standard policy should be confirmed before further processing the insurance proposal.
Should there be any associated civil engineering construction risks (Contractor’s All Risks Insurance) in conjunction with the erection contract works, the contract value applicable to such associated construction risks is required to be separately ascertained and should be rated as per rules applicable to Contractor’s All Risks. If such values do not exceed 20% of total contract value, such separate rating is not required and it may be rated as per rules applicable to Erection All Risks policies.
This insurance covers unforeseen and sudden physical loss of or damage to the insured machinery, equipment and installations in the specified premises from any cause not specifically excluded, necessitating their repair or replacement, whilst at work, at rest or during maintenance operations or when being shifted within the premises or during subsequent re-erection.
Examples of Machinery Breakdown Cover:
• Defects in casting and material.
• Faulty design.
• Faults at workshop or in erection.
• Bad workmanship, lack of skill, carelessness.
• Shortage of water in boilers.
• Physical explosion.
• Tearing apart on account of centrifugal force.
• Electrical causes such as short circuit.
Deterioration of Stock
Frozen goods are subject of being stored under given temperatures status, and any variation in temperature can be harmful to such stock as ice creams, meat, chicken, and vegetables.
This insurance covers loss or damage to perishable goods kept in cold stores, due to any unforeseen and sudden physical loss or damage to the cold stores, including rise or fall in cooling temperature.
This cover will be provided only in conjunction with machinery Breakdown Insurance policy, and the cause of damage must be covered under the Machinery Breakdown policy.
Contractors Plant & Machinery
Contractor’s Plant: includes tools and equipment on site, timber, jacks, shovels, survey tools. and site offices.
Contractor’s Machinery: Machines that can move by its own power like excavators, trucks, dumpers, bulldozers.
This insurance covers unforeseen and sudden physical loss of or damage to the insured items, necessitating their repair or replacement. The cover applies at work, at rest or during maintenance operations and is not limited to a specific construction site.
• Electrical or Mechanical Breakdown.
• Replaceable parts & attachments.
• Vehicles designed and licensed for general road use.