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Erection All Risk Insurance (EAR)

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Comprehensive and adequate insurance protection against all risks involved in the erection of machinery and plant as well as structures of any kind. This policy provides coverage to all types of projects including large projects such as erection of Thermal Power stations, Fertilizers Plants, Oil refineries or the installation of complete factory facilities, which bring about so many risks for both the contractors and the principal. Coverage right from the moment the material are unloaded on the site of the projects/ works and continues during storage, physical erection and till the test run is over.

  • Coverage Includes
    • Fire, Lightning
    • Theft & Burglary
    • Impact from falling objects, Collision, Failure of cranes or tackles
    • Failure of safety devices, Short Circuits
    • Explosion
    • Carelessness, Negligence, Faults in erection, Malicious Damage, Strike & Riots
    • Storm, Tempest, Hurricane, Flood, Inundation, Subsidence, Landslide, Rockslide
  • General Exclusions
    • Some of the covers included in this policy include :
      • Loss or damage due to Faulty design, Defective material of casting, and/or bad workmanship.
      • Manufacturing defects
      • Loss or damage due to Mechanical and/or Electrical breakdown or derangement
      • Loss or damage due to willful act or willful negligence
      • Consequential loss
      • Loss or damage due to War or Warlike operations
      • Loss or damage due to nuclear reaction, Nuclear radiation or Radioactive contamination
      • Losses due to normal wear and tear, Gradual deterioration
      • Compulsory deductible
  • Period of Cover
    • The insurance cover commences from the date of arrival of first consignment at the site of erection and continuous until immediately after the first test operation or test loading is concluded.
  • Additional Covers
    • Clearance & Removal of debris
    • Construction Plant & Machinery
    • Insured's own surrounding property
    • Escalation
    • Third Party Liability
    • Express Freight
    • Airfreight
    • Extended Maintenance
    • Additional Custom duty
    • Earthquake
    • Terrorism Damage
  • Premium Payments
    • Premium can be collected in installments if the period of insurance is more than 12 months.
  • Rating
    • The rating depends on:
      • Type of projects
      • Period of projects
      • Testing period
      • Sum insured of Project
      • Deductible Franchise
      • Location of project
      • Extensions opte