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Why Every Construction Project Needs Erection All Risk Insurance

Posted on 12 Dec, 2023
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Construction projects involve numerous risks, such as accidents, natural disasters, and unforeseen circumstances that can lead to significant financial losses. As a project owner or contractor, it is crucial to protect yourself and your investment from these potential risks. One effective solution is to obtain an Erection All Risks Policy.

In this blog, we wіll explore the key reasons why every construction project needs Erection All Risks Policy.

Benefits of Professional Indemnity Insurance for Doctors

Complete Coverage:

Erection All Risk (EAR) insurance provides coverage for construction projects. It protects against a wide range of risks, including damage to the property insured at the project site whilst being stored, erected, tested and maintained.

Protection Against Material Damage:

During the construction phase, various risks can result in material damage. This can include damage to construction materials, equipment, and machinery. Erection All Risk Insurance covers the cost of repairing or replacing damaged materials, ensuring that the project can proceed without delay or additional financial burden.

Coverage for Construction Machinery:

Construction machinery is invaluable for completing projects efficiently. However, these machines are susceptible to breakdowns and damage. Employee All Risks (EAR) insurance covers the cost of repairing or replacing damaged machinery, minimising potential project delays and financial setbacks.

Safeguard Against Natural Disasters:

Natural disasters such as earthquakes, floods, and hurricanes can cause extensive damage to construction projects. Erection All Risks Insurance provides protection against these perils, ensuring that if the project is affected, the financial losses are covered. This coverage allows construction projects to recover and resume their operations quickly.

Protecting Workers and Third Parties:

Construction sites are inherently dangerous environments, and accidents can occur despite safety precautions. An EAR insurance policy can provide coverage for injuries to workers, subcontractors, or third parties.

Mitigating Financial Loss:

In the event of a project delay or unexpected disruption, the financial losses can be substantial. EAR insurance can help mitigate these losses by covering additional expenses incurred due to project delays, including increased labour costs, eхtended rentals, or penalties. This coverage allows the project to stay financially on track and avoid unnecessary financial strain.

Compliance with Contractual Requirements:

Many construction contracts require contractors to maintain certain insurance coverage. Erection All Risks insurance meets these contractual requirements, ensuring that the project owner or contractor is in compliance with the terms and conditions agreed upon.

Peace of Mind:

Undertaking a construction project can be daunting, considering the potential risks involved. By having Erection All Risks Insurance in place, project owners and contractors can have peace of mind knowing that unexpected events are covered. This reassurance allows them to focus on delivering the project successfully without undue stress or financial worry.

Conclusion:

Erection All Risks Insurance is an essential component of any construction project. Its coverage protects project owners and contractors from a range of risks, including natural disasters and liabilities. EAR insurance offers financial security, peace of mind, and the ability to navigate unexpected challenges confidently.

To know what is included in our Erection All Risks Insurance click here.

  • Engineering Insurance
  • Product Code: 4021
  • Product UIN: IRDAN115CP0001V01202021

Help us know you better!

This contains only an indication of the cover offered. For complete details on risk factors, terms, conditions, coverages and exclusions, please read the sales brochure carefully before concluding a sale.ICICI trade logo displayed above belongs to ICICI Bank and is used by ICICI Lombard GIC Ltd. under license and Lombard logo belongs to ICICI Lombard GIC Ltd. ICICI Lombard General Insurance Company Limited, ICICI Lombard House, 414, Veer Savarkar Marg, Prabhadevi, Mumbai – 400025. . IRDA Reg.No.115. Toll Free 1800 2666. Fax No – 022 61961323. CIN (L67200MH2000PLC129408). customersupport@iciclombard.com. www.icicilombard.com. (Engineering Insurance, 4010 , IRDAN115P0010V01200607)