Erection all risk insurance
Cover for a plant or machinery installation from the moment it arrives on site through erection, testing and commissioning, together with third-party liability around the works.
What it covers
Cover varies between insurers and plans. The policy wording is what decides whether a claim is payable, so read it before you buy.
- Physical loss of or damage to the plant and machinery being erected
- Storage at site before erection begins, for the period the policy allows
- Fire, explosion, natural perils, theft and burglary during the project
- Faulty erection and its consequences, to the extent the wording allows
- Testing and commissioning, the riskiest phase of the project, for the agreed period
- Third-party liability, surrounding property, and the civil works incidental to the erection
Key features
- Project-period cover, from unloading at site to the end of testing or handover
- Sum insured on the complete erected value, including freight, duties and erection cost
- Testing and commissioning is specifically covered, for a stated period
- Maintenance visits or extended maintenance cover after handover, where required
- Third-party liability and surrounding property sections alongside the works
- Deductibles usually higher during testing than during erection: [DEDUCTIBLE]
How to buy it
Four steps, with an advisor you can reach at any of them.
Tell us about the risk
Tell us the equipment being erected, the contract value, the site, the programme and who is to be insured.
Underwriting details
An advisor collects the information insurers need to price the risk, and flags anything missing.
Compare quotes
We ask our partner insurers to quote, and put the cover, conditions and premium side by side.
Proposal & policy
Pick a quote, complete the proposal form and KYC, and the insurer issues the policy.
Erection all risk insurance: FAQs
When does the cover start and end?
Typically when the items arrive at site and are unloaded, ending on completion of testing and commissioning or at handover, whichever the policy states. Storage before erection can be covered by extension.
Is the machinery covered while travelling to site?
Not by this policy. Transit to site is a marine cargo or transit policy; erection all risk picks the risk up once the goods are at site.
Who is the insured?
Usually the project owner and the erection contractor jointly, with subcontractors named where the contract requires it, so one policy responds whoever caused the damage.
Does it cover breakdown once the plant is running?
No. Once the plant is handed over and in commercial operation, machinery breakdown cover or an industrial all risk policy takes over.