Erection All Risk

Insurance that covers all risks of damage or loss that occur in the process of installing or installing machines (except for some of the risks listed in the exception)


The coverages can be divided by 2 sections, such as:

  1. Material Damage

The policy covers physical, unexpected and sudden loss or damage from any cause, other than those specifically excluded, in connection with the installation process or machine installation

  1. Third party legal liability

The policy cover legal liability to third parties in connection with the installation or installation of machines for:

  1. Bodily injury: bodily injury or illness of a third party due to an accident (whether fatal or not)
  2. Property damage: loss or damage due to an accident on property belonging to a third party
  3. Law costs and expenses: all costs and costs of litigation obtained by the claimant from the Insured, and all costs and expenses incurred with the written consent of the insurer


General Exclusions

  1. War, invasion, act of foreign enemy, hostilities (whether war is declared or not), civil war, rebellion, revolution, popular uprising, rebellion, riot, strike, obstruction of work, riots, military force or takeover of power, a group of people criminals or persons acting on behalf of or in connection with a political organization, conspiracy, confiscation, detention, expropriation or destruction or destruction on orders by the competent authorities
  2. Nuclear reactions, nuclear radiation or radioactive contamination
  3. Willful act or omission by the Insured or his representative
  4. Cessation of work either total or partial



  1. Own risk or deductible listed in the summary borne by the Insured in each incident
  2. Continuation loss in any form or description including penalty, loss due to delay, poor workmanship, loss of contract
  3. Loss or damage due to wrong design
  4. The cost of replacing, repairing or repairing defective materials and/or workmanship
  5. Wear, corrosion, oxidation, quality degradation due to lack of use and normal atmospheric conditions
  6. Loss or damage to construction equipment, construction equipment and machinery due to electrical or mechanical damage, failure, fracture or mechanical disruption, freezing of essential fluids or other fluids, lubrication defects or lack of oil or coolant
  7. Loss of or damage to vehicles licensed for use on public roads or water transportation or airplanes
  8. Loss of or damage to files, drawings, bookkeeping records, money orders, currency, postage, deed, proof of debt, banknotes, shares, checks
  9. Loss or damage found only at the time of inventory

Important Information

1.Sum Insured

The sum insured on the policy must not be less than the value of each item at the time of completion of installation, including transportation costs, customs duties, taxes, installation costs, and the Insured’s actions to increase or decrease the amount of insurance in the event of a material fluctuation in the level of wages or prices.

2.Basis for Settlement of Losses

  • In case of repairable damage. Repair costs required to return the item to its condition immediately after the damage occurred minus the remaining items
  • In case of total damage. The actual value of the goods immediately before the loss is deducted by the remaining goods

3.Extended Coverage

Extra costs for overtime, night work, work on public holidays, express freight are covered under this insurance only if previously and specifically agreed in writing.

4. Insurance Period

The policy starts from the start of work or after the goods are unloaded at the site and ends on the part of the work contract that has been handed over or used plus a maintenance period.


Minimum Data Requirement

  1. Name of Contractor
  2. Name of Principal
  3. Name of Equipment/ Machinery Supplies
  4. Existing/ Surrounding Property
  5. Period/ Schedule For Construction,Testing/ Commissioning and Maintenance Period
  6. Site Information: Particular of Soil Conditions
  7. Site Information: Altitude Above Sea Level and Proximity to Water
  8. Estimated Full Contract Value
  9. Breakdown of Contract Value (Or on Major Items of Overall Project)
  10. Site Plot Plant / Lay Out of The Project
  11. Works Progress Chart / Bar Chart / Time Schedule
  12. Full Contract Agreement Conditions
  13. Scope of Works
  14. Loss History

Claim Procedures

In the event of a claim event that can give rise to a claim under this policy, the insured must:

  1. Immediately notify the Insurer, giving an indication of the nature and extent of the loss or damage
  2. Take all steps within its control to minimize the level of loss or damage
  3. Maintain the affected parts and make them available for inspection by the representative or insurer surveyor
  4. Immediately report to the competent police in the event of loss or damage due to theft or demolition or damage due to malicious acts.’
The Insurer is not responsible if the notification exceeds 14 days from the occurrence of the thing that causes the claim. Special conditions apply to Third Party Liability: No acknowledgment, offer, promise, payment or compensation made or given by or on behalf of the Insured without the written consent of the Insurer