Erection All Risk Insurance

Installation of machinery or equipment always entails a risk of loss or damage. Such eventualities can put a break in implementation, cause financial burden and leave you feeling you have no control.

The Erection All Risk (EAR) insurance covers loss or damage to projects that involves erection/installation of plant, machinery, and equipment ranging from erection of a single machine to a large power plant. It protects a contractor or employer against physical loss or damage to the contract works, construction plant and equipment or machinery. It also includes cover for damage to property of third parties and bodily damage to third parties

Who can take the insurance?

The policy can be taken out in the joint names of the contractor and the employer. All parties involved in any kind of construction may be insured:

• General contractors

• Subcontractors

• Suppliers and manufacturers of equipment

• Purchaser or owner

Key Features of Erection All Risk Insurance

• Offers comprehensive insurance for erection of projects and provides cover during storage, erection, and testing of property at the insured site.

• Provides coverage for the entire period of the project rather than on an annual basis.

• Offers various add-ons as per customers’ needs.

What does Erection All Risk Insurance cover?

EAR cover begins from the time of unloading of the first consignment at the project site and terminates on completion of testing or handing over of the project to the principal employer, or the period chosen, whichever is earlier.

The following are the eventualities against which you are covered:

• Fire, explosion, lightning, aircraft damage

• Flood, storm, cyclone, landslide and allied perils

• Riot, strike, malicious act

• Faults in erection of building

• Burglary and theft

• Human errors, act of negligence.

• Electrical and mechanical breakdown

• Short circuiting, arcing, excess voltage

• Collapse, damage due to foreign objects, impact damages

• Any other sudden, unforeseen, accidental damages not explicitly excluded.

What does Erection All Risk Insurance cover?

Below are the available add-ons you can avail to extend your insurance cover:

• Cross liability

• Cost of clearance and removal of debris

• Third-party liability

• Express freight

• Additional customs duty

• Air freight

• Escalation

• Damage to owner's surrounding property

• Maintenance cover

• Holiday and overtime charges