Erection All Risk Policy
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. The Principal/Main contractor for the entire project (including the various sub‐contracts) can take the policy. The sub‐contractors can also take this policy to cover their interests if they are not covered under the main contract. The policy is issued in the joint name of the Principal and the Contractor.
The policy can be issued to cover all kinds of engineering projects where the value of civil construction is less than 50% of the total project cost. Some of the examples of such projects are: Air‐conditioning plants, aerial ropeways, blast furnaces, boiler houses, cable lying, combined cycle power plants, diesel generating houses, distilleries, etc. SCE/EAR can be taken for projects that are located in India only.
SCE/EAR is an "All Risk" Policy which means that every hazard is covered, unless specifically excluded. By "every hazard", we mean any sudden and unforeseen loss or damage to the property insured, which occurs during the period of insurance.
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