Erection All Risk Insurance

Suppose, you are initiating a new business which includes erecting a manufacturing unit and needs to protect your investment, a small amount of damage to any of the component might cause heavy financial loss. All the businesses involving storage of equipment, moving or expanding a facility, or dismantling and re-constructing leave your organization open to significant risk. The Erection All Risk Policy is a boon for contractors, manufacturers, and suppliers as it offers protection to the erecting machinery and plant against financial loss. These losses can be due to any unforeseen causes resulting in loss or damage to the property insured at the project site.

The Erection All Risks (EAR) policy

covers the risks associated with Plant and Machinery under erections. The major concerned areas are storage, assembly, erection, and testing of the plant and machinery. The cover commences from the date of arrival of the first consignment at the specified site and terminates on the date of the expiry of the policy or completion of erection and trial run. The cover can be extended only in the case of non-completion of the project within the period of the policy. The policy can also be stretched out to include third party liability related to work conducted on the contract site.

The material damage covers the reimbursement of the cost of clearance and removal of debris following any event. This gives rise to an admissible claim under the policy. It also includes the damage to the property insured by explosion or directly caused by an act of terrorism.

Add-ons for the Erection All Risk Insurance are the following:

1. Cross liability

2. Third-party liability

3. Cost of removal of debris

4. Express freight, overtime charges

5. Airfreight

6. Additional customs duty

7. Earthquake/terrorism

8. Escalation

9. Owner’s surrounding property

10. Storage risk at fabricator’s premises

11. Maintenance cover

several other new extension to the policy and other benefits can be added as per the requirement. Policy can be customized, please discuss your requirements.

The policy doesn’t cover

1. Any loss or damage due to faulty design, defective material of casting and bad workmanship

2. Manufacturing defects

3. Loss of damage due to willful act or willful negligence

4. Consequential loss

5. Loss of damage due to the ward or warlike operations

6. Any loss or damage due to sudden nuclear reaction or radioactive contamination

7. Losses due to normal wear and tear, gradual deterioration

8. Cessation of work

9. Inventory losses

Please contact as Risk Birbal can be your guide and help.