What is Erection All Risk Insurance?
The erection all risk insurance policy is a type of insurance policy that provides cover for any loss or damage caused during the Installation of machinery or equipment in the factory or an office. This policy provides the employer financial aid for such eventualities as it can put a break in implementation, cause a financial burden and leave you feeling you have no control.
Who can take the insurance?
The policy can be taken out in the joint names of the contractor and the employer. All parties involved in any kind of construction may be insured:
- General contractors
- Subcontractors
- Suppliers and manufacturers of equipment
- Purchaser or owner
What does Erection All Risk Insurance cover?
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
- Faults in the erection of a building
- Burglary and theft
- Human errors, acts of negligence.
- Electrical and mechanical breakdown
- Short-circuiting, arcing, excess voltage
- Collapse, damage due to foreign objects, impact damages
- Any other sudden, unforeseen, accidental damages are not explicitly excluded.
Add-on covers under Erection All Risk Insurance
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
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