Erection All Risks Insurance

Erection all riskThis insurance policy covers unpredictable physical losses caused during installation or assembly of different machinery and equipment and also installation of any type of metal structure in small and big industrial workshops, car manufacturing industries, chemical industries, steel and food industries, paper and wood technology, leather, tile-making, agriculture-affiliated industries and also telecommunication systems, accurate laboratory systems, power plants, refineries, petrochemical units, telecommunication facilities, water, gas and oil pipe-laying operations, water and gas transfer projects and power transfer projects.

The covers presented in this policy is completely similar to contractor’s all risks policy. The difference is that erection all risks insurance is used for covering various types of the machinery and erection .

Since one of the major concerns of the owners and authorities of these projects, is the risks during testing and operation stages, the risks of this period are also covered. Further, provided an extra amount is paid, the risks during land transportation of equipment are also covered. This policy also provides maintenance period (or guarantee period) cover after provisional delivery.


All Risks insurance of installation covers the damages due to fire, thunderbolt, explosion, earthquake, flood, storm, water overflow and landslide, cases such as improper designing, defects in materials, bad workmanship, risks created in the manufacturing factory and machinery and (voluntarily) equipment for installations.


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

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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