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.
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.
Requirements:
Project Contract
Scope of Work
Breakdown of Values
Bar Chart/Time Schedule
Site Development Plan
Construction Methodology
Building Plans
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
