Property Insurance

Errection All Risk Policy

Errection All Risk Insurance

Erection All risk policy

Erection All Risks (EAR) Insurance — written in connection with construction projects outside the United States, EAR policies are designed to cover the risk of loss arising out of the erection and installation of machinery, plant and steel structures, including physical damage to the contract works, equipment and machinery, and liability for third-party bodily injury (BI) or property damage (PD) arising out of these operations.

Scope of cover

  • This policy covers risks associated with storage, assembly/erection and testing of Plant and Machinery. EAR insurance provides comprehensive cover.
  • All perils are covered unless specifically excluded.
  • Cover commences from the date of arrival of first consignment at site
  • Cover terminates on the date of expiry as per policy or on completion of Erection and Trial run whichever is earlier.
  • In the event of non-completion of the project within the period as per policy, cover may be extended for such further tim as may be required at additional premium

    • ADD ON COVERS

    • Owners' Surrounding Property
    • Removal of Debris
    • Additional Customs Duty
    • Air-Freight
    • Express freight, Overtime charges, Holiday wages etc.
    • Contractors’ Plant & Machinery (upto Rs.25 lacs)
    • Third Party Liability(with/without Cross liability)
    • Maintenance Visit or Extended Maintenance
    • Catalyst during Hot test (Petrochemical risks)
    • Holiday and Overtime rates and Wages.
    • Escalation.

    It is possible to integrate transit insurance (inland/overseas) on project materials with EAR policy and opt for a combined Marine-cum-Erection policy.

    SIGNIFICANT EXCLUSIONS

    • Excess in respect of each claim as stipulated
    • Inventory Losses, Normal wear & tear and gradual deterioration due to atmospheric condition or otherwise, rust, scratching of painted or polished surface or breakage of glass.
    • Loss or damage due to faulty design, defective material or casting
    • War and warlike operation
    • Nuclear reaction, nuclear radiation or radioactive contamination.
    • Willful act or negligence of Insured.
    • Consequential Losses of any kind or description such as losses due to penalty, delay, lack of performance, loss of contract.