Erection All Risks (EAR) Insurance | Installation & Testing Coverage

Erection All Risks (EAR) Insurance: Installation and Testing Coverage

This Erection All Risks (EAR) Insurance policy is designed to cover unpredictable physical losses occurring during the installation or assembly of various machinery, equipment, and metal structures [Image of a Jack-up oil drilling rig] . Our coverage extends across a wide spectrum of sectors, including:

• Industrial workshops (e.g., car manufacturing, steel, food)
• Chemical and petrochemical industries (e.g., refineries, petrochemical units (See Oil & Gas Insurance))
• Power plants, telecommunication systems, and accurate laboratory facilities
• Major infrastructure projects, including water, gas, and oil pipe-laying operations, and power transfer projects (See CAR).

Key Differences from Contractors’ All Risks (CAR)

The coverage presented in this policy is similar to Contractors’ All Risks (CAR) policy, but the core difference is that Erection All Risks Insurance is specifically utilized for covering the installation and erection phase of machinery and equipment.

Crucially, we cover the risks during the testing and operation stages, addressing a major concern for owners and project authorities. Additionally, upon payment of an extra amount, risks during the land transportation of equipment and the post-completion maintenance or guarantee period are also covered.

Perils Covered by EAR Insurance

All Risks insurance of installation covers damages due to a broad range of perils, including:

• Fire, thunderbolt, and explosion
• Natural disasters (e.g., earthquake, flood, storm, water overflow, and landslide)
• Human factors (e.g., improper designing, defects in materials, bad workmanship)
• Risks created in the manufacturing factory and machinery (voluntarily)

Full risk insurance coverage begins from the procurement date commencing installation and construction operations and includes a test period, commissioning, maintenance or guarantee. Responsibility for third parties will also be covered in Section 1 of All Risks Insurance (See TPL).

Download Proposal Form

For detailed risk assessment and proposal generation, please download the Erection All Risks Questionnaire:

Download EAR Questionnaire (DOC)

EAR Coverage Details: Period and Perils Covered | Erection All Risks Insurance

Erection All Risks (EAR) Insurance: Coverage Period and Perils

Policy Commencement and Termination

The Erection All Risks (EAR) cover begins from the time of unloading of the first consignment at the project site.

It terminates on the completion of the project's testing phase or the handing over of the project to the principal employer, or the period chosen, whichever is earlier. This ensures your project is protected throughout the critical installation and commissioning stages. (View EAR Policy Details)

The Eventualities Against Which You Are Covered

The EAR policy is an "All Risks" cover, meaning it provides protection against any sudden and unforeseen loss or damage not explicitly excluded. The common eventualities covered include, but are not limited to:

• Natural Perils: Fire, explosion, lightning, and aircraft damage.
• Weather-Related Damages: Flood, storm, cyclone, landslide, and allied perils.
• Socio-Political Risks: Riot, strike, and malicious act.
• Construction Defects: Faults in the erection of the building or structures.
• Security and Theft: Burglary and theft.
• Operational & Human Factors: Human errors, act of negligence.
• Machinery Risks: Electrical and mechanical breakdown, short circuiting, arcing, and excess voltage. (Related: MB Insurance)
• Impact & Collapse: Collapse, damage due to foreign objects, and impact damages.
• General Clause: Any other sudden, unforeseen, accidental damages not explicitly excluded in the policy wording.

For a detailed assessment of your project's risks, please refer to our questionnaire: Download EAR Questionnaire (DOC)