Erection All Risk

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Risk Covered:

  • Coverage is on an ‘all-risks’ basis, including:
  • Fire, lightning, explosions, aircraft damage
  • Riots, strikes, malicious acts
  • Floods, inundation, storm, cyclone and allied perils
  • Landslide, overflows and rockslides
  • Burglary and theft
  • Faults in erection
  • Human errors, negligence
  • Short-circuiting, arcing, excess voltage
  • Electrical and mechanical breakdown
  • Collapses, damages due to foreign objects, damages caused by impact
  • Any other sudden, unforeseen, and accidental damages that were not excluded explicitly


  • Cross liability
  • Third-party liability
  • Removal of debris expenses
  • Express freight, overtime charges
  • Air freight
  • Additional customs duty
  • Escalation
  • Owners’ surrounding property
  • Storage risk at fabricator’s premises
  • Maintenance cover


  • Loss or damage due to faulty design, defective material of casting and/or bad labor work
  • Manufacturing defects
  • Loss or damage due to willful acts or negligence
  • Consequential loss
  • Loss or damage due to war or warlike operations
  • Loss or damage due to nuclear reaction, nuclear radiation or radioactive contamination
  • Losses due to normal wear and tear, gradual deterioration
  • Cessation of work
  • Inventory losses