Erection All Risk Insurance

Coverage Add-On Cover Exclusion


Projects under erection are exposed to host of risks which can put a break in implementation, cause financial burden and leave you feeling you have no control.

This policy 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.

Cover incepts 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 or the period chosen, whichever is earlier.


Section I - Provides coverage for the property lost, damaged or destroyed by any cause, other than those specifically excluded in the Policy, necessitating replacement or repair. The Company will pay or make good all such loss or damage up to an amount not exceeding the sum specified in respect of each of the items and not exceeding in the whole the total Sum Insured specified.

Section II - Provides coverage towards: a) Legal liability for accidental loss or damage caused to property of other persons. b) Legal liability for fatal or non-fatal injury to any persons other than the Insured's own employees or workmen or employees of the owner of the works or premises due to construction of any property.

Add-On Cover

On payment of additional premium, the following coverages may be selected:

  • Dismantling Cover
  • Storage risk at Fabricators premise
  • Provision for escalation
  • Clearance And Removal Of Debris
  • Surrounding property of the Insured
  • Additional Rate For Express Freight (Air Freight Excluded) Holiday And Overtime Rates Of the Wages
  • Additional Rate For Air Freight Only
  • Additional Custom Duty
  • Construction Machinery Plants And Equipments
  • Maintenance Visits and Extended Maintenance Cover


The Company will not be liable under the Policy in respect of loss or damage due to:

  • Excess as stated in the Schedule
  • Loss discovered only at the time of taking an inventory
  • Loss or damage due to wear and tear, gradual deterioration due to atmospheric conditions or rust, scratching of painted/polished surfaces or breakage of glass
  • loss or damage due to faulty design, defective material or casting, bad workmanship etc
  • The cost necessary for rectification of any error during erection
  • Loss of or damage to files, drawings, accounts, bills, currency, packing materials etc
  • Any damage or penalties on account of the Insured's non- fulfillment of the terms of delivery or completion under his Contract of Erection
  • Loss or damage to vehicles licensed for general road use or water borne vessels etc
  • War and War like operations, Nuclear perils
  • Wilful act or gross negligence, existing defects, normal wear and tear and consequential loss
  • Cessation of work whether total or partial