Erection All Risks (EAR) Insurance

Erection All Risks Insurance [EAR] protects the interests of principal, contractors, sub contractors and other relevant parties involved in erection of plant, machinery, equipments during the execution of a project. 

The coverage under the policy is under two sections as below,

Section 1: Material damage

Coverage in this section includes,

• Accidental damage
• Fire, lightning, storm, tempest, flood
• Collapse, collision, impact
• Burglary, theft and malicious damage
• Riot, strike, subsidence, landslide, cyclone, hurricane, earthquake, volcanic eruptions.

Policy can be extended to cover existing surrounding property belonging to the principal.

Section 2: Third-party liability

This section provides indemnity towards legal liabilities of the Insured to third parties arising out of performance of the contract works.

• Accidental bodily injury and/or death to third parties
• Accidental damage to third-party property

The policy can also be extended to cover risks during testing and commissioning of works. The contractual obligations during maintenance/defect liability period are also covered under the policy.