Erection All Risk Insurance

What is erection all risk insurance?

 An Erection All Risks (EAR) insurance offers protection to Principals and Contractors and also to Manufacturers and Suppliers erecting machinery and plant etc. against financial loss due to any sudden fortuitous and unforeseen causes resulting in loss or damage to the property insured at the project site whilst being stored, erected, tested and maintained.
                  EAR insurance has been designed to meet the needs of the market, which are fast changing with the advancement in technology and the economic structure projects of all sizes of Macro or Micro levels i.e. large projects such as erection of Thermal Power Stations, Oil Refineries, Fertilizer Plants etc, or small projects like installation of Computers of Electrical equipment.

What do you need Erection all risk insurance?

  1. Any contingency during unloading at the project site
  2. During storage, physical construction/erection
  3. During test run and maintenance if covered.
  4.  Covers all physical losses or damages.
  1. Location Risks: Fire, Lighting, Theft, Burglary & Housebreaking.
  2. Testing and Commissioning Risks*: Failure of Safety Devices, Leakage of Electricity, Insulation failure, Short circuit, explosion.
  3. Act of God: Storm, Tempest, Hurricane, Flood, Inundation, Subsidence, Landslide, Rockslide, earthquake.
  4. Handling Risks: Impact from falling objects, Collision, Failure of Cranes or Tackles etc.
  5. Risk of Human Element: Carelessness, Negligence, Faults in Erection/Construction, Strike & Riot, Malicious damage, Terrorism.
  6. Testing Perils: Maximum value at risk.
  1. War & Allied Perils.
  2. Willful act or willful negligence of Insured/ his representatives.
  3. Excess in respect of each claim as stated in the policy.
  4. Normal wear and tear, gradual deterioration, lack of use, obsolescence, rust, etc.
  5. Any damages/ penalties on account of the Insured of the terms of delivery/ completion under his contract of construction.
  6. Nuclear & Allied Perils.
  7. Cessation of work.
  8. Losses discovered only at the time of taking an inventory.
  9. Loss/ damage due to faulty design, defective material or casting other than faults in erection.
  10. Consequential loss/ liability of any kind.
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