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What is Erection All Risk Insurance

Posted on 13 April, 2022
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The Erection All Risk policy (EAR) refers to the type of insurance policy that covers any loss or any damage occurring when machinery or equipment in the factory or an office is being installed. This policy protects you financially against such mishaps which can hinder the implementation process, besides adding to expenses.

The cover for Erection All Risk insurance policy starts from the commencement of unloading of materials at the project or construction site. It is valid till it is completed and taken over by the main client.

Erection All Risk Insurance

What does Erection All Risk policy cover?

Installation and Testing

The Erection All Risk insurance provides coverage against any physical damages or losses during erection or installation of any plant, machinery, and equipment. In other words, it covers damages during erection of either a single machine or an entire plant or factory. It also covers damages observed till completion of testing of the installed machinery/plant.

Contractors and Employers

A contractor or employer benefits from the Erection All Risk policy as it offers cover to all the parties included in all types of construction, such as contractors, equipment suppliers and manufacturers, as well as the owner. It protects against damages to property of third parties, or any injury to them during the Erection or Testing process. Any injury to workers due to mishaps or accidents is not insured under Erection All Risk policy.

Mishaps or Disasters

Erection All Risk insurance policy offers protection against any event of man-made or natural disaster such as explosion, fire, short circuit, floods, landslides, cyclones, riots, strikes, theft etc. It also includes any mishap due to an error during the erection process of building or any human casualty due to an act of negligence.

Miscellaneous Expenses

Additionally, the Erection All Risk policy covers other expenses incurred during the installation or erection process such as third-party liability, freight expenses, cost for debris clearance, customs duty, damages to property, whether own or third party, etc.

What does Erection All Risk policy not cover?

The Erection All Risk insurance policy does not include intentional loss or damage occurring due to deliberate negligence. It also does not include any pause in work, any manufacturing defects, or loss in inventory.

Any damage or losses due to normal corrosion, as well as due to war or nuclear or radioactive reaction is also not covered under the policy.

To Conclude

The EAR policy cover is a great advantage if you are in the construction business since it is a comprehensive insurance protecting you against the risks of loss and damage during installation of plant or machinery, testing, commissioning of machinery, plant and equipment during construction process.

It also covers physical damages to machineries, human casualties, as well as third-party damages/ expenses. Therefore, it is an ideal solution to help you stay protected from installation costs and additional expenses.

  • 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)