Engineering insurance

Erection All Risk Insurance (EAR)


The Erection All Risk policy is specially designed to cover loss or damage to projects that involves erection/installation of plant, machinery and equipment ranging from erection of a single machine to a large power plant.


This is an "All Risk" policy covering various activities of erection/installation, testing and commissioning of plant and equipments (except specific exclusions as mentioned in the policy). It protects a contractor or employer against physical loss or damage to the contract works, construction plant and equipment or machinary. It also includes cover for damage to property of third parties and bodily damage to third parties.


The policy can be taken out in the joint names of the contractor and the employer. This policy enables the Contractor or Employer to comply with the insurance requirements of the Contract.


Summary of Cover.


This policy (Section 1) covers risks associated with storage, assembly/erection and testing of Plant and Machinery. EAR insurance provides comprehensive cover. All perils are covered unless specifically excluded.

Section 2 of the policy covers legal liability falling on the insured contractor as a result of bodily injury or property damage belonging to a third party.​​​

The cover starts on the unloading of the first consignment at site or commencement of work and continues to be in force as stated in the policy including the test run period. The policy ceases when the project is handed over to the principal or put into service.

On request the policy can be extended to cover various optional extensions viz. Transit to or from the site (excluding sea or air transit), testing and commissioning, maintenance cover, removal of debris costs, architects, surveyors fees for the reinstatement of damage, damage to surrounding property, etc.​​​


​Period of Insurance - Should not be less than the period of contract.


Sum to be insured is the completely erected value of the plant and machinery inclusive of freight, customs duties and cost of erection.​​​​


Exclusions (list is not exhaustive. Please refer to the main policy)


a) Loss or damage due to faulty designs, defective materials and bad workmanship. 

b) Manufacturing defects in the machinery or the risks which fall within the scope of manufacturer’s guarantee. 

c) Loss or damage due to mechanical and electrical breakdown or damage not caused by any of the external risks covered by the Policy. 

d) Loss or damage due to willful act or willful negligence. 

e) Loss or damage due to wear and tear operations of civil commotion or order of any government authority. 

f) Loss or damage due to nuclear weapons, radiation and radioactive materials.

g) Losses within the compulsory access.


How to purchase?


For detailed information,

Call toll free : 800(628873) - Ext 123