Erection All Risk

Coverage available under Erection All Risk policy.

  • Storage Risk

  • Shifting   

  • During Erection

  • During Testing

  • The policy can be taken by the principal, contractor or sub contractor, jointly or separately.

  • The policy comprises of 2 Sections

  • Section I-Material Damage-covering physical loss, damage or destruction of the property insured by any cause, other than those specifically excluded in the policy.

  • Section II-Third Party Liability-covering the legal liability falling on the insured contractor as a result of bodily injury or property damage belonging to a third party.


  • Sum Insured:

Section I – Material Damage

  1. Total Contract Price including the estimated cost of labour charges and cost of materials

  2. Materials or items supplied by the Principal

  3. Any additional items not included in (a) and (b) above

Section II – Third Party Liability (Optional)

The sum insured under section II should represent the per accident limit (the maximum legal liability that may fall on the insured as a result of an accident in the insured’s site). The limit per policy period should be fixed taking into account the maximum number of such accidents which can reasonably be expected to occur –


  • Period of Insurance

Period of insurance should be equivalent to the period of contract, commencing from the date of unloading of the first batch of material at the site of construction and expiring on the date of handing over of the contract work to the principal.

In case of delay in completion of work, policy can be extended by paying additional premium depends upon extension period.


  • Excess: As per tariff depending upon type of project.