The Erection All Risk (EAR) insurance covers loss or damage to projects that involve the erection/installation of plant, machinery, and equipment ranging from the erection of a single machine to a large power plant. It protects a contractor or employer against physical loss or damage to the contract works, construction plant and equipment or machinery. It also includes cover for damage to the property of third parties and bodily damage to third parties.

Coverage:

EAR cover begins from the time of unloading of the first consignment at the project site and terminates on completion of testing or handing over of the project to the principal employer, or the period chosen, whichever is earlier.

The following are the eventualities against which you are covered:

• Fire, explosion, lightning and aircraft damage
• Flood, storm, cyclone, landslide and allied perils
• Riot, strike, malicious act
• Burglary and theft
• Collapse, damage due to foreign objects, impact damages
• Any other sudden, unforeseen and accidental damages
• Accidental damage during storage

Add-on covers:

Below are the available add-ons you can avail to extend your insurance coverage:

• Cross liability
• Cost of clearance and removal of debris
• Third-party liability
• Express freight
• Additional customs duty
• Air freight
• Escalation
• Damage to surrounding property
• Maintenance cover
• Holiday and overtime charges

Exclusion:

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