Erection all risks insurance covers physical damage that may occur on projects such as production lines, power plants, industrial facilities and steel structures, from the moment machinery and equipment arrive on site through erection to testing and commissioning. Erection errors, dropping, impact, fire and natural perils are among the most common risks faced during this period.
The most sensitive stage of an erection project is testing and commissioning, when equipment is run under load for the first time. Defining this period correctly in the policy, distinguishing between cold and hot testing and aligning the maintenance period cover with the contract are decisive when a claim arises. The scope is confirmed in the policy wording according to the equipment type and erection contract.
Who is it for?
- Machinery suppliers and erection contractors
- Investors in power plants and industrial facilities
- EPC and turnkey project contractors
- Manufacturers expanding capacity or renewing lines
Scope of cover
- Sudden and unforeseen physical damage to machinery, installations and structures being erected
- Damage from erection errors, dropping, impact and accidents
- Testing and commissioning period cover
- Natural perils such as fire, earthquake and flood
- Third party liability arising from the erection works
- Debris removal costs
- Maintenance period and contractor’s plant extensions
Scope of cover, limits and deductibles are determined by the insurer’s general and special conditions; the final scope is set out in the policy.
The Proxima Brokers approach
We review the erection contract, equipment lists and works programme to structure the testing and commissioning period, maintenance period and deductibles in line with the project. We present the technical risk clearly to insurers to obtain competitive terms and check policy clauses against contractual obligations. In a claim, we follow the technical loss adjusting process and guide you through settlement.