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Securing your Projects & Future Profits

Erection All Risk Insurance Policy

Features & Benefits

  • Requirements

    The long process of erecting a whole building structure requires time and a lot of hard work. B​esides the construction, there is equipment and machinery that need to be set up, tested and installed for a construction plant to successfully function. So, as the process involves several steps and equipment and people working on establishing a complete building, structure or plant, there are also several risks and threats involved. Our Erection All Risk policy works to protect you and your resources from the start to finish of the process of erecting a new structure. The policy covers risks for a variety of projects including power plants, water and wastewater treatment facilities, manufacturing factories and telecommunications centres.

  • Benefits

    The Erection All Risks policy covers not just the structure and its processes, but all the different parties involved in the erection work like the contractors and investors. The policy protects against damage to the machinery being installed, including those for storage, testing and commissioning. The coverage under the policy lasts until the duration of the project concludes and before it is handed over to the owner.

  • Sum Insured

    The sum insured is equal to the total value of the project including the cost of erection, buildings or the plant and the machinery, along with customs duty and the freight charges.

  • Premium

    The amount of the premium you shall pay will depend on the type of project, its overall value and the duration it lasts for comprising the period of testing.


You can buy the Erection All Risk Insurance Policy if you are directly involved in an erection project as a financer, contractor, subcontractor or the purchaser or owner of the project.

To know more about the eligibility, inclusions and exclusions, please read the policy wordings.​​

Our Erection All Risks policy, as the name suggests, cover you from ‘All Risks,’ which may be sudden and unforeseen losses or damages to insured property. This policy also provides protection to the machinery while in use, being installed or in storage, from accidents and natural hazards like hurricanes. The coverage begins from the very time that the consignment of machinery is first unloaded at the project site and lasts until the erection of the project is completed and handed over to the owner or purchaser.

You can extend the policy cover by paying extra premium from the following risks:

  • Escalation
  • Maintenance
  • Clearance and removal of debris
  • Damage to the owner’s surrounding property
  • Third party liability
  • Additional customs duty
  • Express freight
  • Holiday and overtime rates and wages
  • Earthquake
  • Terrorism

For those looking to extend the Erection All Risk Insurance Policy to cover inland/ overseas project materials, LVGI offers a combination of transit insurance and Erection all risk policy on project materials, to provide a single Marine-cum-Erection policy for all-inclusive coverage.

The policy has a few ‘named excluded perils’ or specific risk exceptions that will not be covered under the insurance. The policy will not indemnify the insured in cases of loss, damage or liability arising from or aggravated by one of the following risks:

  • Willful acts or negligence of the insured or the carelessness of his responsible representative.
  • Inventory losses discovered only at the time of taking an inventory.
  • Defective design, material, bad workmanship or faulty casting leading to a loss or damage in erection.
  • Wear and tear or gradual deterioration as a result of atmospheric conditions including rust, scratching of painted or polished surfaces or breakage of glass etc.
  • Work cessation, whether total or partial.
  • War and war-like events including invasion, hostilities, act of foreign enemy war like operations, civil war, revolution, rebellion, insurrection, civil commotion, mutiny, military or usurped power, martial law, confiscation, conspiracy, persons acting in connection with any political organization, commandeering a group of malicious persons, requisition or destruction by order of any government de jure or de facto or by any public, local or municipal authorities.
  • Nuclear events or nuclear reaction, nuclear radiation or radioactive contamination.


The company shall not be held liable for the expense experienced in case of rectification or correction of any error occurred during erection, unless it results in physical loss or damage to files, accounts, drawings, bills, currency, evidence of debt, stamps, deeds, security cheques, notes or packing materials such as boxes, cases and crates.

Why Commercial Insurance

Listen to Our Customers

The Client has highly appreciated the inputs and report from Mr. Sudhanshu.
Its because of him we were able to convince the client to move to Liberty along with local sales support.​

Rohit Kapoor

We find the report is very exhaustive in bringing out the risk exposures and the works the client has to carry out for risk elimination. Surely the client will be benefited by the suggestions you have put forth.​


The contents of your newsletter are quite interesting and informative.

This will help in creating awareness in the industry about the loss prevention and good maintenance.

Thanks for the good work you are doing.​


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Registration Number: 150 | ARN- ADVT/2017/May/22 | CIN: U66000MH2010PLC209656

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