A Contractor Who Installs Transformers, Usually One At A Time, Applies For Insurance Cover For A Transformer

A Contractor who installs Transformers, usually one at a time, applies for insurance cover for a transformer he is about to install.How would you provide the insurance?

Select one:


A Minor Works Policy providing Erection and Testing Cover.


A general major construction policy.


A PCI or CPI Policy.


Decline taking on the insurance.

Expert Answer

This solution was written by a subject matter expert. It’s designed to help students like you learn core concepts.


The correct choice for providing insurance for a contractor who installs transformers one at a time is:

a. A Minor Works Policy providing Erection and Testing Cover.



A Minor Works Policy that includes Erection and Testing Cover is the most suitable option for this scenario. Here’s why:

1.Specific Coverage: This policy is designed for small to medium-sized projects and aligns with the contractor’s needs for insuring a single transformer installation. It specifically includes coverage for erection and testing activities.

2.Cost-Effective: Since the contractor installs transformers one at a time, a Minor Works Policy offers a cost-effective solution tailored to the scale of the project, avoiding unnecessary premiums associated with larger construction policies.

3.Focused Protection: Erection and Testing Cover ensures that the critical phases of the installation process are protected, providing coverage for potential risks and losses during these activities.


Selecting a Minor Works Policy with Erection and Testing Cover is the most appropriate choice. It provides the contractor with focused and cost-effective insurance coverage for the installation of a single transformer, addressing the specific needs of this project while keeping insurance costs reasonable.