Erection All Risk Frequently Asked Questions (FAQ’s)

Erection All Risk Policy is also known as Storage Cum Erection insurance or SCE /EAR) is an insurance policy that is designed to protect the interests of Principals/EPC Contractors against damage or destruction of engineering projects where the value of Plant & Machinery comprises more than 50% of the total project cost. The protection extends to accidental damages to the project works, contractors plant & machinery employed in the project and also to damages and defects during the subsequent period of maintenance for which the EPC contractor is responsible.
For the sake of better understanding, SCE/EAR normally covers the following:
  • Fire & Lightning
  • Accidental damages during erection (such as dropping or falling down of objects etc) as well as during testing
  • Flood, Storm, Tempest, Inundation, Water damage
  • Collapse, Collision, Impact
  • Theft & Burglary, Riot, Strikes & Malicious Damage (Excluding Terrorism)
  • Subsidence, Landslide and Rockslide, etc.
General Exclusions
  • War, Invasion, Mutiny, Civil Commotion etc. (the burden of proving that the loss is not caused by an excepted peril falls upon the insured)
  • Damage by order of any government or municipality or local authority (the burden of proving that the loss is not caused by an excepted peril falls upon the insured)
  • Nuclear reaction, radioactive contamination
  • Willful act or Negligence of the insured
  • Cessation of work whether total or partial
The following Extensions / Add ons are also available on payment of additional premium:--
  • Storage Risks at fabricators premises
  • Clearance & Removal of Debris
  • Contractors Plant and Equipment not exceeding 5% of SCE/EAR Sum Insured
  • Third Party Liability and Cross Liability
  • Terrorism risks
  • Owners Surrounding Property
  • Escalation of Sum Insured
  • Additional Cost of Air Freight
  • Express Freight, Overtime wages and Holiday wages
  • Transit Insurance (including Customs Duty Cover) connected with SCE/EAR insurance
  • Additional Customs Duty
  • Maintenance Visits & Extended Maintenance Visits
  • Cover for “Hot Testing” of Catalyst in respect of Fertilizer and Chemical plants
CIN: U66000KA2018PTC117713 | IRDAI Web aggregator License Code Number: IRDAI / INT / WBA /53/ 2018, Valid till 07/08/2025