About Policy
Every time an organization undertakes a project that involves storage and setting up of equipment, moving or expanding a facility, or dismantling and re-constructing it, it leaves the organization open to significant risk. BGIC’s Erection All Risk Insurance helps protect against just this kind of scenario. The comprehensive nature of its coverage makes it the ideal solution for diverse needs, whatever the risk the organization wants to insure.
Scope of Cover
This branch of engineering insurance offers comprehensive and adequate protection against all the risks involved in the erection of machinery, plant and steel structures of any kind, including surrounding property and third-party claims in respect of property damage or bodily injury arising in connection with the execution of a project.
Section1: Material Damage
EAR insurance provides very wide cover. Almost any sudden and unforeseen loss or damage occurring to the property insured on the erection site including the surrounding property in the care and custody of the insured leading to repair or replacement during the period of insurance will be indemnified. The insurer will indemnify loss or damage due to the following causes:
- Fire, lightning, explosion.
- Flood, inundation.
- Windstorm of any kind.
- Earthquake.
- Theft, burglary.
- Faults in erection.
- Negligence, lack of skill, lack of experience, malicious acts.
- Short-circuit, arcing, excess voltage.
- Excess pressure or vacuum, tearing apart on account of centrifugal force.
- Any other sudden and unforeseen event such as loss or damage due to collapse, foreign objects, on-site transport of items to be erected, etc.
Section2: Third Party Liability
This section indemnifies the insured against liability at law for damages and claimant’s costs and expenses due to bodily injury and / or death of any third party person and / or damage to third party property, arising from an accident during the period of insurance caused by the activities of the insured whilst performing duties on the project site as described in the policy schedule.
Main Exclusions
- Loss or damage due to faulty design.
- Defective material or casting.
- Defects in workmanship.
- Loss or damage due to willful acts or willful negligence of the insured or their representatives.
- Consequential loss of any kind or description whatsoever e.g. claims from penalties, losses due to delay, lack of performance, loss of contract.
- Loss or damage due to war or warlike operations, civil commotion of any kind as well as acts on the part of strikers and locked-out persons.
- Loss or damage due to nuclear reaction, nuclear radiation or radioactive contamination
