What is Erection All Risks Insurance?

An Erection All Risks (EAR) insurance offers protection to Principals and Contractors and also to Manufacturers and Suppliers erecting machinery and plant etc. against financial loss due to any sudden fortuitous and unforeseen causes resulting in loss or damage to the property insured at the project site whilst being stored, erected, tested and maintained.

EAR insurance has been designed to meet the needs of the market, which are fast changing with the advancement in technology and the economic structure projects of all sizes of Macro or Micro levels i.e. large projects such as erection of Thermal Power Stations, Oil Refineries, Fertilizer Plants etc, or small projects like installation of Computers of Electrical equipment.

Erection All Risks Policy
Erection All Risks Policy Online

Who needs it?

  • Property owners or renters
  • Small Business owners
  • Medium Business owners
  • Large Business owners

Why ICICI Lombard?

The need of Erections All Risks insurance is more than ever before due to the following reasons

1

Expertise in risk minimization and mitigation.

2

Special value added services team dedicated for risk advisory and safety installations.

3

Speedy claims settlement with single documentation.

4

Financial strength and supreme claims paying capacity.

Why do you need it?

This insurance provides comprehensive insurance cover to the client with respect to

  • Any contingency during unloading at the project site
  • During storage, physical construction/erection
  • During test run and maintenance if covered
  • Covers all physical losses or damages
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What is covered by ICICI Lombard Erection All Risks Insurance?

Below are the detailed inclusions and exclusions of our Erection All Risks Insurance

  • Location Risks: Fire, Lighting, Theft, Burglary & Housebreaking.
  • Testing and Commissioning Risks*: Failure of Safety Devices, Leakage of Electricity, Insulation failure, Short circuit, explosion.
  • Act of God: Storm, Tempest, Hurricane, Flood, Inundation, Subsidence, Landslide, Rockslide, earthquake.
  • Handling Risks: Impact from falling objects, Collision, Failure of Cranes or Tackles etc.
  • Risk of Human Element: Carelessness, Negligence, Faults in Erection/Construction, Strike & Riot, Malicious damage, Terrorism.
  • *Testing Perils: Maximum value at risk.
  • War & Allied Perils.
  • Wilful act or wilful negligence of Insured/ his representatives.
  • Excess in respect of each claim as stated in the policy.
  • Normal wear and tear, gradual deterioration, lack of use, obsolescence, rust, etc.
  • Any damages/ penalties on account of the Insured of the terms of delivery/ completion under his contract of construction.
  • Nuclear & Allied Perils.
  • Cessation of work.
  • Losses discovered only at the time of taking an inventory.
  • Loss/ damage due to faulty design, defective material or casting other than faults in erection.
  • Consequential loss/ liability of any kind.

The insurance cover is subject a few exclusion listed in the policy which are applied internationally and are common to the insurance industry.
* Its inbuilt cover in EAR, for CAR specific request to be made to UW.

Get answers to common questions about Erection All Risks Insurance

Who needs erection all risk policy?

The policy can be taken by any individual or organisation as Principal or Contractor of a project.
It can be taken in joint names also.
EAR policy offers protection to Principals and Contractors and also to Manufacturers and Suppliers erecting machinery and plant etc. against financial loss due to any sudden fortuitous and unforeseen causes resulting in loss or damage to the property insured at the project site whilst being stored, erected, tested and maintained.
Yes

What does erection all risk policy covers?

The Policy indemnifies the Insured in the event of unforeseen and sudden physical loss or physical damage to the Property Insured arising:
  • during the period of Insurance
  • whilst at the Project Site (or in storage)
Erection All Risk Policy provides cover for electromechanical projects, erection of various type of plants and T&D network.
Yes, Third Party Cover can be opted upto 10% of Sum Insured or upto INR 25 Crs, whichever is greater.

What is testing period in erection all risk policy?

The testing period shall commence for each item of property insured with the application of the first test-load or the first introduction of fuel, feedstock or process materials and shall last for the duration specified in the schedule or until the item has passed its tests, whichever is the earlier.
  • Covers Loss or damage caused by contractor while carrying out obligations under maintenance contract.
  • Cover loss or damage occurring during maintenance period provided such loss or damage was caused during construction / erection period.
Yes
Yes there are as per the Risk Occupancy.
We have MyRA – Email Based BOT system to generate quotes and policies.
  • Detailed RFQ
  • Principal, Contractor, Sub-contractor details
  • Estimated Cost of project- contract cost, Other than Project BOQ material, Taxes etc.
  • Projects Start date, End date, and Bar chart.
  • Details towards Testing for EAR projects.
  • Equipment details like Imported equipment, second-hand details for EAR projects.
  • Sum Insured breakup towards different scope of works
  • Risk location details, in case of multiple locations- names of all locations. (Lat-long coordinates & Google maps required for road projects, transmission lines)
  • Complete/Detailed scope of works or contract copy.
  • Wet works details and sum insured if involved.

How to report losses?

  • Web page www.icicilombard.com
  • Homepage / Web claim tracker
  • Call 24 X 7 call centre number 1800 2666
  • Web page www.icicilombard.com
  • Homepage / Web claim tracker
  • Call 24 X 7 call centre number 1800 2666
Yes, within 14 days.
No.
Unable to understand the question.

UIN No. For Retail: IRDAN115RP0023200708 For Commercial: IRDAN115CP0052201920Product Code: 5006