Erection All Risks Insurance
What is Erection All Risks Insurance?
Erection All Risks insurance (EAR) is an insurance policy that would cover your company for its property damage and third-party liability in case of bodily injury or material damage claims during machinery erection.
This policy covers the works to be executed in accordance with the contract, temporary works, materials, construction plant and equipment brought into the site and liabilities arising out of the performance of the contract.
EAR insurance coverage is used for a wide range of projects, such as power plant construction, Oil and gas facilities, Steel, aluminium, and cement industries, and Bottling plants.
What Does Erection All Risks Insurance Cover?
Erection all risk insurance covers:
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Erection as well as installation of electrical or mechanical plant and machinery wherever in the world
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Losses that could occur during testing and commissioning before the handover
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Damages during the contractual maintenance period
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Movement or re-erection of machinery. Thus, including the testing phase, commissioning and maintenance of the installed machinery
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Overseas contracts – subject to some territorial and environmental peril limitations
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Defective design
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Can be extended to Loss of Profits
Erection All Risks Insurance Tips
Erection All Risks insurance is more complex than Construction All Risks. Key points include:
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Premiums depend on contract value, project duration, and liability limits.
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Risk assessment by experienced engineers can take time, so plan ahead.
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It covers projects worldwide, while Construction All Risks is usually locally regulated.