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Erection All Risks

The Erection All Risks certificate provides comprehensive coverage for contractors to meet their obligations under contract conditions for projects works involving erection of machinery, plant, steel structures of any kind awarded to them for projects associated with erection, installation, testing and commissioning at a project site. The certificate can also provide coverage for the duration of erection work including testing/commissioning. In addition to the material damage, the certificate also provides indemnity in respect of third party liability which the Participant shall become legally liable arising out in connection with the execution of a project.

As mentioned above, there are two sections namely:

Section I – Material Damage
It covers any unforeseen and sudden physical loss or damage from any cause, other than those specifically excluded under the certificate:
Section II – Third Party Liability
It covers the contractor for all sums which he shall become legally liable to pay as damages consequent upon:
  • Accidental bodily injury to or illness of third parties (whether fatal or not)
  • Accidental loss of or damage to property belonging to third parties occurring in direct connection with the erection of the items covered under Section I and happening on or in the immediate vicinity of the work site during the period of cover.

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