Engineering & Project Insurance · BusinessErection All
Erection All
Risks Insurance
Covering the Insured against any unforeseen and sudden physical loss or damage from any cause other than those specifically excluded in the policy, across the erection, installation, testing and commissioning stages of an engineering project.
At a glanceWhat this policy
What this policy
can protect.
Basis of cover
Sudden and unforeseen physical loss of or damage to the insured property at the project site.
Excess
Acts of God, minimum UGX 20M. Other perils, minimum UGX 5M.
Period of insurance
From arrival of materials at the project site through to handover to the project owner.
Policy sections
Material damage, testing and commissioning, and third-party liability.
Coverage
What this policy covers.
Material Damage
Sudden and unforeseen physical loss of or damage to the insured property at the project site, including:
Machinery and equipment
Machinery and equipment being erected or installed.
Steel structures
Steel structures and plant components.
Electrical & mechanical
Electrical and mechanical installations.
Materials & supplies
Materials and supplies intended for the project.
Covered Risks
Typical causes of loss covered under the material damage section include:
Fire & explosion
Damage caused by fire or accidental explosion.
Lightning
Damage caused by lightning strikes.
Flood & storm
Flood, storm and wind damage.
Earthquake
Earthquake and other included natural perils.
Impact & collision
Accidental impact or collision damage.
Collapse
Accidental collapse during erection.
Human error
Faulty workmanship, negligence or human error.
Theft
Theft and burglary, subject to policy terms.
Testing and Commissioning
EAR policies generally extend coverage during the stages below. This is one of the main features that distinguishes EAR insurance from ordinary property insurance.
Cold testing
Equipment checks performed without operating load.
Hot testing
Equipment testing while energised or under operating conditions.
Trial runs
Trial operation to confirm performance before handover.
Commissioning
Commissioning of machinery and equipment.
Third-Party Liability
The policy may cover the insured’s legal liability for:
Bodily injury
Accidental bodily injury to third parties.
Death
Accidental death of third parties.
Property damage
Damage to third-party property arising from erection activities.
Legal defence costs
Legal defence costs may also be covered, subject to policy conditions.
Enhance your protection with additional policy extensions.
Debris removal
Shall cover reasonable costs of removing debris subject to the policy limit.
Air freight
May cover additional air-freight costs required to repair or replace insured property after a covered loss.
Overtime & express delivery
May cover approved overtime, night work, and express-delivery costs used to accelerate repairs.
Inland transit
May extend protection to insured materials and equipment transported to the project site.
Surrounding property
May cover accidental damage to surrounding property arising from the insured erection activities.
Escalation
May allow insured project values to increase during the policy period.
Maintenance period
May extend protection during the agreed maintenance period after project handover.
Defects Liability Period.
An optional add-on that provides coverage after the erection phase is complete.
Faulty workmanship or defective material
Responds to faulty workmanship or defective material that becomes apparent after completion.
Remedial works damage
Covers damage caused while the Contractor is carrying out remedial works to rectify such defects.
When the policy is in force.
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Materials arrive
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Storage
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Erection & installation
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Testing & commissioning
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Handover
Exclusions
What is not covered.
War & terrorism
Loss or damage arising from war, invasion, rebellion, terrorism, or similar hostile acts is not covered.
Normal wear and tear
Gradual deterioration caused by ordinary use, ageing, or inadequate maintenance is excluded.
Corrosion, rust and gradual deterioration
Damage that develops over time from corrosion, rust, oxidation, or environmental conditions is not covered.
Wilful acts or deliberate damage
Loss or damage caused intentionally by the insured or anyone acting on their behalf is excluded.
Consequential losses such as loss of profit or business interruption, unless separately insured
Indirect financial losses—including lost profit, project delays, or business interruption—require separate insurance.
Costs of rectifying design defects themselves, although resulting damage may be covered depending on the policy wording
The cost of correcting defective design, materials, or workmanship is excluded. Resulting accidental damage may be covered, subject to the policy wording.
Project claims guide
When it matters, we’re here.
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Report the incident
Notify us as soon as practicable and take reasonable steps to prevent further loss.
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Submit documents
Share the incident details, site records, invoices and supporting evidence.
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Assessment and cover review
We assess the claim against the policy terms and advise the next steps.
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Repair or settlement
We work to resolve the claim promptly under the policy terms.
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