1. Erection All Risk (EAR) Insurance
What may be covered?
Installation of individual machinery, apparatus and assemblies such as turbines, generators, 5 steam boilers, compressor, internal combustion engines, electric motors, transformers, rectifiers, switch gears;
Machine tools, pumps, elevators, crane conveyor belts, cable-ways;
Erection of complete factories and industrial plants, such as electric power stations, sugar mills, plywood plants, cement plants, steel mills, paper mills, textile mills, refineries, fertilizers and chemical plants, food processing plants, etc.
Some of the perils/hazard covered:
- Fire and Lightning
- Acts of God and/or natural calamities such as typhoon, flood, earthquake, inundation, landslide, rock-slide, subsidence
- Faults in erection
- Short-circuiting, arcing, excess voltage
- Bad workmanship, lack of skill, negligence, malicious acts or human error
- Excess pressure or vacuum, tearing apart on account of centrifugal force
- Any other sudden and unforeseen events, such as loss or damage due to collapse, foreign objects
Two (2) Basic Sections of an EAR Policy
Section 1 -Material Damage Section
Insures erection and testing at the site of all kinds of individual machines or a conglomeration of machineries, it includes civil engineering works, freight, custom duties and dues/cost of erection. Clearance of debris and properties held in care, custody and control of the insured. Machinery, plant and equipment required for erection may also be included.
Section 2 -Third Party Liability Section
This covers for legal liability arising out of property damage or bodily injury (whether fatal or not) suffered by third parties in connection with the erection works and happening within the immediate vicinity of the erection site.
Maintenance Cover maybe granted to completed structures, the liability is limited to loss or damage caused by the Insured in the course of the operations carried out for the purpose of complying with the obligations under the maintenance provisions of the contract.
2. Construction All Risk (CAR) Insurance
CAR is a form of property insurance which provides protection against losses arising as a result of physical damage or accidents during the construction or installation period of any building, machinery installation and or civil engineering projects.
What may be covered under CAR?
- Construction of Residential Units/Condominiums.
- Office Buildings, Hospitals, Commercial Establishments, Theaters, Schools, Hotels, Dormitories, etc.
- Civil works and structures for Factories and Power Plants.
- Road, Bridges, Piers, Dams, Water Supply and Drainage System.
Some of the perils/hazard covered:
- Fire and Lightning.
- Acts of God and/or natural calamities such as typhoon, flood, earthquake, inundation, landslide, rock-slide, subsidence.
- Theft and Burglary.
- Bad workmanship, lack of skill, negligence, malicious acts or human error.
- Project Contract
- Scope of Work
- Breakdown of Values
- Bar Chart/Time Schedule
- Site Development Plan
- Construction Methodology
- Building Plans
3. ELECTRONIC EQUIPMENT INSURANCE
Provides an all risks of physical loss, destruction, or damage to electronic equipments such as laptops, computer system, it covers the following but not limited to:
- Human error – negligence, untrained or improper handling, operational errors Intentional damage by third parties / malicious intent
- Technology – errors in construction, material defects, short circuit, manufacturing discrepancies, over-voltage, induction, damage through indirect lightning
- Fire / Lightning, Windstorm / Typhoon, Flood, Tidal Wave, Earthquake
- Explosion, Aircraft, Impact by Road Vehicles, Smoke
- Electrical Injury, Bush Fire
- Broad Water Damage, Water damage caused by the overflowing or bursting of water tanks, pipes or other apparatus
- Subsidence, Collapse and Landslide
- Riot and Strike, Civil Commotion, Malicious Acts
- Sprinkler and related fire fighting apparatus leakage
- Burglary, Robbery and Theft and Accidental dropping