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
- Owner's surrounding property
- Storage risk at fabricator's premises
- Maintenance cover