PROSUR INSURANCE PLC

 Claim Hotline: 069 731 111 / 017 777 891

ERECTION ALL RISKS INSURANCE


What is this product about?

The policy is designed to meet the insurance obligations placed upon Contractors under the contract conditions. The Erection All Risks insurance covers the contractors against loss or damage to:


Erection and installation works including electrical or mechanical plant and machinery during installation, testing, commissioning by unforeseen and sudden physical loss or damage other than from those causes specifically exclude;


Legal liability to third party consequent upon accidental bodily injury/death or loss/ damage to property occurring in direct connection with the works.


What are the covers / benefits provided?

Section I – Material Damage

This section covers against sudden and unforeseen physical loss or damage (except as specifically excluded in the policy) in respect of all the risks involved in the erection and installation works during the period of insurance.

Section II – Third Party Liability

This section covers legal liability to third party for which we shall become legally liable to pay as damages for:

  1. Accidental bodily injury, death or illness of third parties; and
  2. Accidental loss or damage to property belonging to third parties.

The period of cover is the duration of your Contract Works, including Testing and Commissioning, and the Defects Liability or Maintenance Period of your contract.


What is the insured property?

Section I – Material Damage

  • Erection works

    • By payment of additional premium, the cover may include:

  • Materials or Items supplied by the principal(s)
  • Removal of Debris
  • Professional Fees
  • Principal’s Existing Property or Property belonging to or held in Care, Custody or Control by the Insured

Section II – Third Party Liability

  • Accidental bodily injury to or illness of third party
  • Accidental loss or damage to property belonging to third party

Period of Insurance

Duration of cover corresponds with the contract period stipulated in the Letter of Award. It also includes testing & commissioning, and the ensuing Maintenance Period following the expiry of contract period. The Period of Insurance is one year but shall automatically renew every year to correspond with the contract period as stipulated in the Letter of Award.


How much premium do I have to pay?

The premium and terms vary depending on:

  • Total contract value / sum insured
  • The type of erection works
  • The location of the project
  • The duration of the contract (erection period including testing & commissioning and maintenance/defective liability period)
  • The surrounding properties details
  • The 3rd party liability limit required
  • The extension(s) required
  • Reinsurance support
  • Past loss history
  • Other underwriting requirements (if any)

What is the payment mode and how do I pay the premium?

You may pay your premium in full either by cash or cheque or bank transfer.


What are some of the key terms and conditions that I should be aware of?

  • Duty of disclosure
    - You must give all the facts which you know or ought to know, otherwise your policy may be invalidated.
    - You must ensure that the proposal form/questionnaire is completed accurately as the information provided by you will form the basis of the insurance contract.
  • Sum insured
    You must ensure that your sum insured for the erection/installation works stated in the Schedule shall not be less than the full value of the erection works at the completion of the contract.
    If the sum insured stated in the Schedule less than the amount required to be insured at the time of loss (i.e. under-insurance), you are deemed to be self-insuring for the difference. The average condition will apply in the event of a claim.
  • Under-insurance
    If the sum insured in your policy is less than the actual value at the time of loss, you are deemed to have underinsured and have self-insured the difference. This average condition will apply in the event of a claim. You shall be considered as being Your own Insurer for the difference, and shall bear a rateable proportion of the loss accordingly.
  • Contribution condition
    If at the time of any loss destruction or damage happening to any subject matter insured there be any other subsisting insurances whether by You or by any other person or persons covering the same subject matter, We shall not be liable to pay or contribute more than their rateable proportion of such loss destruction or damage.
  • Claims Notification
    - In the event of a claim, you must notify us as soon as reasonably possible, but no later than 14 days from the date of the accident.
    - You must submit the claim documents to us within 30 days from the date of the loss or such further time as we may in writing allow.
  • Deductible/Excess
    This is the amount that you have to bear before we indemnify you of a loss.
  • Premium Warranty
    Premium must be paid in full and received by us within 30 days from the inception date of the cover, otherwise the cover is automatically cancelled and you will still be responsible to pay the proportion of premium for the period we have been on risk.

What are the exclusions under this policy?

The policy shall not be liable for:

Exclusions: Section I – Material Damage

  1. The deductible stated in the Schedule to be borne by the Insured in any one occurrence;
  2. Consequential loss of any kind or description whatsoever including penalties, losses due to delay, lack of performance, loss of contract;
  3. Loss or damage due to faulty design, defective material or casting, bad workmanship other than faults in erection;
  4. Wear and tear, corrosion, oxidation, incrustation;
  5. Loss of or damage to files, drawings, accounts, bills currency, stamps, deeds, evidences of debt, notes, securities, cheques, packing materials such as cases, boxes, crates;
  6. Loss discovered only at the time of taking an inventory;
  7. Loss or damage to surrounding property unless extended to cover.

Exclusions: Section II – Third Party Liability

  1. The deductible stated in the Schedule to be borne by the Insured in any one occurrence;
  2. Expenditure incurred in doing or redoing or making good or repairing or replacing anything covered or coverable under Section I of this Policy;
  3. Liability consequent upon:
    1. Bodily injury to or illness of employees or workmen of the Contractor(s) or the Principal(s) or any firm connected with the project which or part of which is insured under Section I – Material Damage, or members of their families;
    2. Loss of or damage to property belonging to or held in care, custody or control of the Contractor(s), the Principal(s) or any other firm connected with the project which or part of which is insured under Section I, or an employee or workman of one of the aforesaid;
    3. Any accident caused by vehicles licensed for general road use or by waterborne vessels or aircraft;
    4. Any agreement by the Insured to pay any sum by way of indemnity or otherwise unless such liability would have attached also in the absence of such agreement.

General Exclusions (Whole Policy)

  1. War, invasion, act of foreign enemy, hostilities (whether war be declared or not), civil war, rebellion, revolution, insurrection, mutiny, riot, strike, lock-out, civil commotion, military or usurped power, a group of malicious persons or persons acting on behalf of or in connection with any political organization, conspiracy, confiscation, commandeering, requisition or destruction or damage by order of any government de jure or de facto or by any public authority;
  2. Nuclear reaction, nuclear radiation or radioactive contamination;
  3. Willful act or willful negligence of the Insured or of his representatives;
  4. Cessation of work whether total or partial.

Note: This list is not exhaustive. Please refer to the policy contract for the full list of terms and conditions under this policy.


What are the pre-acceptance conditions for this product?

Submission of the following documents/information for our assessment of risk:

  • Profile of your Company together with a list of past and existing projects undertaken by you
  • Letter or award of contract
  • Summary of the Scope of Works with Breakdown in Values
  • Location map with details of surrounding Third Party properties
  • Site layout plan
  • Erection Time Schedule (Bar chart)
  • No claims for the past 3 years
  • Insured has never been declined, cancelled or refused coverage previously

Can I cancel my policy?

This Policy is non-cancellable except for the following reasons which cancellation is by mutual consent between the Insured and the Insurer:

  • Major material changes in the insured risk; and
  • Abandonment of project, i.e. withdrawal of the principal or any key contractor(s) from the works contract for political, financial, technical or other reasons.