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Benefits of Erection All Risk Insurance

Posted on 05 April, 2022
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The initialisation or commencement of a project is prone to various operational, natural, and accidental hazards. During the erection stage of a project, as a businessman, you must make necessary arrangements to protect your investment (i.e. machinery, plant, or equipment) against potential losses or damages.

As even the slightest damage to a component can cause heavy financial losses and might bring your project to a standstill, you must invest in an insurance policy that protects your business or project from this kind of damage.

Erection All Risk Insurance

What is Erection All Risk (EAR) Insurance?

Erection All Risk (EAR) Insurance is an insurance policy that gives your project a continuous and extensive cover, right from the time the first consignments are received at your site location until the final testing of the machinery, plant, or equipment related to your project.

Besides providing insurance for the erection and installation of electrical or mechanical plant and machinery, Erection All Risk (EAR) Insurance protects your business from physical loss or damage from perils such as fire, lightning, and natural catastrophe. Additionally, this policy also covers the legal liability and claims that may arise due to third-party bodily injury and property damage.

What are the Benefits of an Erection All Risk (EAR) Insurance policy

Although there are plenty of benefits of an Erection All Risk (EAR) Insurance policy, a standard Erection All Risk (EAR) policy essentially provides insurance cover for the below-mentioned elements and eventualities:

  • Protection of machinery, plant, and equipment at the project site during erection and installation phases.

  • Cover against perils like fire, lightning, burglary, explosion, and natural disasters.

  • Protection of machinery right from the commencement of its loading for dispatch to the project site.

  • Machinery breakdown during testing and commissioning processes.

This protection cover can be extended for the following liabilities or risk factors on payment of an additional premium-

  • Third-party liability

  • Cross liability

  • Cost of removal of debris

  • Material damage coverage like additional custom duty, express freight, and wages

  • Cost of damage to surrounding property

  • Dismantling

Some of the exclusions under the Erection All Risk (EAR) Insurance policy are-

  • War Invasion

  • Nuclear perils

  • Wilful Negligence of the Insured

  • Gradual wear and tear

  • Inventory losses

  • Design Defects

  • Consequential Loss

  • Terrorism

Other key benefits or features of Erection All Risk (EAR) Insurance policy

  • This policy can be taken in the joint name of the contractor and the employee.

  • It provides comprehensive coverage for the insured projects during the erection, storage, and testing stages of these projects.

  • The policy offers various add-ons as per the business needs of the customer.

  • The benefits of the policy are applicable for the entire period of the insured project.

To Conclude

Erecting new structures for your business projects and installing equipment at your new or existing project sites can be a long and risky process. And besides erection, you also need to take care of testing and maintaining your equipment and machinery during the tenure of these business projects.

Therefore, it is advisable for both owners and contractors to take an insurance policy to shield their businesses and projects against any impending financial losses.

  • Erection All Risk Insurance
  • Product Code: 5006
  • Product UIN: IRDAN115RP0023V01200708

Help us know you better!

This contains only an indication of the cover offered. For complete details on risk factors, terms, conditions, coverages and exclusions, please read the sales brochure carefully before concluding a sale.ICICI trade logo displayed above belongs to ICICI Bank and is used by ICICI Lombard GIC Ltd. under license and Lombard logo belongs to ICICI Lombard GIC Ltd. ICICI Lombard General Insurance Company Limited, ICICI Lombard House, 414, Veer Savarkar Marg, Prabhadevi, Mumbai – 400025. . IRDA Reg.No.115. Toll Free 1800 2666. Fax No – 022 61961323. CIN (L67200MH2000PLC129408). customersupport@iciclombard.com. www.icicilombard.com. (Erection All Risk Insurance, 5006 , IRDAN115RP0023V01200708)

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