Erection All Risk Policy

Also called Erection All Risk(EAR) and/or Construction All Risk(CAR), this insurance covers all types of risks involved in the erection of machinery, plant and steel structures of any kind, as well third-party claims in respect of property damage or bodily-injury arising in connection with the execution of an erection project.

Coverage is on an 'all-risks' basis which means it covers a wide range of benefits:

  • Fire, lightning, explosion, aircraft damage, riot, strike, malicious acts, flood, inundation, storm, cyclone and allied perils, landslide, subsidence, rockslide, burglary and theft. These are standard perils covered in most fire policies as well.
  • Faults in erection, human errors, negligence, short circuiting, arcing, excess voltage.
  • Electrical and mechanical breakdown.
  • Collapse, damage due to foreign objects, impact damages.
  • Any other sudden, unforeseen, accidental damages not explicitly excluded.

Major Exclusions for the Policy Include

  • Loss or damage due to faulty design, defective material of casting and/or bad workmanship.
  • Manufacturing defects.
  • Loss or damage due to wilful act or wilful negligence.
  • Consequential loss
  • Loss or damage due to war or warlike operations.
  • Loss or damage due to nuclear reaction, nuclear radiation or radioactive contamination
  • Losses due to normal wear and tear, gradual deterioration
  • Cessation of work
  • Inventory losses

Add-ons for Additional Benefits

  • Liability(Cross liability, Third party liability, Public liability)
  • Cost of removal of debris
  • Air freight, express freight, overtime charges, additional customs duty
  • Escalation
  • Owner's surrounding property
  • Storage risk at fabricator's premises
  • Maintenance cover