Erection All Risks Policy

The Erection policy offers all risks cover for Plant, Machinery, and equipment or Steel Structures in the course of installation including commissioning and testing period. It offers comprehensive and adequate protection against all the risks involved in the erection of machinery, plant and steel structures of any kind, as well as third-party claims in respect of property damage or bodily injury arising in connection with the execution of an erection project.

The insured under an EAR policy is normally:

  • The manufacturer or supplier of machinery or plant if they carry out the erection work or is responsible for it, or
  • The firm commissioned with erection work, or
  • The purchaser of the machinery or plant to be erected

EAR insurance provides very wide cover. Almost any sudden and unforeseen loss or damage occurring to the property insured on the erection site during the period of insurance will be indemnified. The insurance will indemnify loss or damage due to the following causes:

  • Fire, lightning, explosion
  • Flood, inundation
  • Windstorm of any kind
  • Earthquake
  • Theft, burglary
  • Faults in erection
  • Negligence, lack of skill, lack of experience, malicious acts
  • Short-circuit, arcing, excess voltage
  • Excess pressure or vacuum, tearing apart on account of centrifugal force
  • Any other sudden and unforeseen event such as loss or damage due to collapse, foreign objects, on-site transport of items to be erected, etc.

The cover commences directly after the unloading of the items to be insured at the site and continues until the erection work and testing operations have been

completed. It therefore includes loss or damage during storage, during the period of erection and during test, test loading or operation.

In addition, it is possible to extend the period of cover to include a maintenance period.

Maintenance visits cover

The insurer's liability during the maintenance period is limited to loss or damage caused by the insured in the course of the operations carried out for the purpose of

complying with the obligations under the maintenance provisions of the contract.

Extended maintenance cover

In addition to the protection provided under the maintenance visits cover, this cover also includes loss or damage occurring during the maintenance period but caused during the erection period on the construction site.

Maintenance guarantee cover

If the insured is the manufacturer of the machinery or plant to be insured and has also been commissioned with the erection work, the manufacturer's liability for

loss or damage during the guarantee period, as stipulated in the supply contract, can be included in the insurance to a certain extent in addition to the above-mentioned covers.

Information required to obtain a quote:

Premiums are normally tailor-made and in order to arrive at a premium rate commensurate with the risk from an engineering point of view, it is essential for the

insurer to obtain full particulars such as:

  • Technical Specifications of the relevant project,
  • The Contract Price,
  • The value of the items to be erected
  • Information on the experience of the erection firm with similar projects
  • A flow chart of the production process, a layout plan (with a view to third-party liability)
  • The geological, hydrological and meteorological data on the erection site
  • The supply and erection time schedule, details on pre-storage facilities
  • Guard services, fire-fighting facilities