Erection All Risk Insurance
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Erection All Risk Insurance
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Get ₹1 Crore Cover,
Starting At ₹4,500*/year
Erection All Risk Insurance
Protects against installation and erection risks
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Erection All Risk (EAR) Insurance provides all-round cover for projects where plant, machinery, or equipment is being installed or erected. It protects contractors, project owners, and other stakeholders from financial losses during the erection, testing, or commissioning phase of a project. This includes protection against damage caused by fire, explosion, theft, and other unexpected events. EAR Insurance is also called Erection All Risks Insurance, Project Erection Insurance, or Erection Project Cover.
See More...Erection All Risk (EAR) Insurance provides complete protection during the installation and commissioning of plant, machinery, and equipment. It helps contractors and businesses manage financial risks during project execution. In an Erection All Risk (EAR) policy, you are protected when installing machinery or equipment in your factory or office. The policy covers any losses or damages that occur during installation. If anything goes wrong, you will be reimbursed financially, helping you avoid delays and extra costs.
Here are the five most important features of an EAR Policy:
Covers Physical Damage During Erection
The policy protects against accidental damage to machinery or structures during storage, assembly, erection, or testing. This includes fire, explosion, water damage, collapse, and more.
Includes Third-Party Liability Cover
If someone outside the project is injured or their property is damaged due to the erection work, the policy covers the legal and compensation costs.
Active from Site Delivery to Commissioning
Cover starts from the moment equipment is unloaded at the site and continues through the entire installation process until testing is complete.
Customisable Based on Project Requirements
The policy can be adjusted for project size, duration, and risk level. This makes it suitable for both small installations and large industrial projects.
Add-On Covers Available
Extra covers can be added for debris removal, extended maintenance period, or damage to surrounding property, depending on project needs.
These features make EAR Insurance a smart and reliable choice for any project involving equipment erection or installation.
Installation and erection projects involve many risks. Machinery, electrical panels, and structural parts can get damaged during unloading, fitting, testing, or commissioning. Even a small fault can lead to project delays or financial loss. An Erection All Risk (EAR) Policy protects your business from such situations.
Here is why you need EAR Insurance:
Coverage for Machinery and Equipment
EAR Insurance covers a wide range of risks, including damage to machinery, structures, and equipment during the erection process. This includes accidents caused by fire, explosion, collapse, human error, and more.
Protection From Start to Handover
The policy's coverage starts from the arrival of materials at the site and continues until the project is completed and taken over, or the plant is commissioned, whichever occurs first. You stay protected during every stage of the project.
Applicable to Many Industries
EAR policies can cover various types of projects, including power plants, manufacturing facilities, and telecommunication centres. Whether the setup is large or small, EAR Insurance fits different project types.
Covers Legal Liability and Delays
If someone outside the site is injured or nearby property is damaged, EAR Insurance covers those claims. It also helps you manage delays by paying for repairs or replacements quickly.
Strong Financial Support for All Involved
EAR policies offer financial protection to contractors, subcontractors, and other parties involved in erection projects. This ensures that none of them is exposed to major losses due to unforeseen events.
In short, EAR Insurance helps you manage risk, meet client requirements, and complete projects on time—without financial stress.
Erection All Risk (EAR) Insurance is useful for any business involved in installing, assembling, or setting up machinery and equipment. If your project includes large equipment, complex systems, or electrical components, this policy helps protect you from costly damage or delays.
Here are some industries and sectors that benefit the most from EAR Insurance:
Railway Electrification
Projects involving the setup of electrical systems, substations, or overhead equipment need EAR cover. Even a small fault can lead to major repair costs or downtime.
Renewable Energy
Solar farms, wind turbine installations, and biomass plants involve delicate and high-value equipment. EAR Insurance protects against damage during installation and testing.
Manufacturing
Factories setting up production lines, assembly units, or special machinery need this policy to stay protected during equipment erection.
Power Generation
Setting up power plants—thermal, solar, hydro, or gas—requires EAR Insurance. It covers risks during equipment delivery, installation, and testing.
Construction and Infrastructure
Projects that include industrial sheds, data centres, warehouses, or commercial buildings with heavy installations benefit from EAR cover during setup.
Heavy Engineering
Companies working with boilers, turbines, cranes, or large machinery use EAR Insurance to protect themselves during project execution.
Whether you are a contractor, builder, equipment supplier, or project owner, if your project involves installing machines or systems, EAR Insurance is essential. It keeps your finances safe and your project on track.
An Erection All Risk (EAR) Insurance policy gives wide protection during the erection and installation of equipment and machinery. The cover is usually divided into two main parts: Material Damage and Third-Party Liability.
Section I: Material Damage
Fire
Covers damage caused by accidental fire during installation.
Explosion and Implosion
Includes blast damage during equipment operation or testing.
Earthquake (Fire and Shock)
Covers damage from seismic activity and the resulting fire or vibration.
Storms, Floods, Cyclones, Tempests, and Inundation
Covers weather-related damage due to heavy rainfall or storms.
Landslides or Rockslides
Protects against soil movement and falling rocks at the site.
Collapse of Structures During Construction
Pays for damage if any part of the setup collapses during the project.
Theft and Burglary
Covers stolen tools, machinery, or materials from the site.
Riots, Strikes, and Malicious Damage
Includes losses from public disturbance or damage caused intentionally.
Testing and Commissioning Risk
Covers damage to equipment during performance checks and system trials.
Section II: Third-Party Liability
Accidental Loss or Damage to Third-Party Property
If someone else's property is damaged due to the erection work, the policy covers it.
Third-Party Bodily Injury or Death
If someone outside the site is injured or dies because of project activities, the policy pays for legal and compensation costs.
Some EAR policies may also cover legal liability for damage to adjacent property or third-party bodily injury.
Together, these sections ensure that your project is protected from both internal damage and external claims. EAR Insurance gives you the confidence to handle large installations without fear of unexpected losses.
Debris Removal Cover
If an accident leaves damaged parts or waste at the site, this add-on covers the cost of cleaning and removing the debris.
Terrorism Cover
This covers loss or damage to the project caused by acts of terrorism. It is often needed in large public or high-risk infrastructure projects.
Maintenance Period Cover
After the installation is complete, there may still be issues during the warranty or maintenance phase. This add-on covers damage that occurs during that period.
Off-Site Storage Cover
Sometimes, materials or equipment are stored away from the main site. This cover protects those items while they are in storage before being brought to the project location.
Cessation of Work Cover
If the project work is halted for a period due to strikes, delays, or any other reason, this add-on keeps the cover active during the stoppage.
Owner’s Surrounding Property Cover
If the erection work damages nearby buildings or property owned by the client, this add-on pays for the repair costs.
These add-ons provide extra support and flexibility, ensuring the EAR policy fits your exact risk exposure. You can select the covers that match your project’s needs for better protection and peace of mind.
Wilful Acts or Negligence
Any damage caused intentionally or due to careless handling by the insured or their staff is not covered.
War and Allied Perils
Losses caused by war, invasion, rebellion, or any military event are excluded.
Lost or Misplaced Inventory
If items go missing without physical damage or accident, the policy will not pay for the loss.
Consequential Losses
The policy does not cover indirect losses such as loss of production, delayed project penalties, or reduced profit.
Worker Injuries
Injuries or death of workers are not covered under EAR. These are handled separately under Workmen’s Compensation Insurance.
Wear and Tear of Construction Building
Gradual deterioration or normal wear due to ageing or use is not included in the policy.
These exclusions are standard across most EAR policies. Always review the full policy wording or speak with your insurance adviser to stay fully informed.
Notify Us
As soon as the loss or damage happens, contact us within 2 days. Share all relevant details and documents, such as photos or reports. We will make sure the process starts without any delays.
Surveyor Visit
Once notified, a surveyor will visit your site within 1–2 days to assess the damage. Please avoid moving any damaged items until the surveyor arrives. After that, we will take care of the next steps.
Submit Required Documents
We will guide you through submitting the necessary documents, including the claim form, incident notes, and financial records. Our team will ensure everything is submitted correctly and on time.
Claim Assessment & Approval
Once the documents are submitted, the surveyor will evaluate the claim and provide a settlement amount based on your policy terms. After approval, the insurer will finalise the settlement.
Payment Processing & Claim Closure
Once the settlement is approved, payment will be processed and issued to you or your beneficiary. After payment, the claim will be closed. If any further issues arise, we will be here to support you until they are fully resolved.
Equipment Collapse During Generator Installation
In 2022, an engineering contractor in Hyderabad was installing a diesel generator at a manufacturing unit. During erection, the crane lost balance, causing the generator to fall and suffer major damage. Control panels and cables were also affected. The contractor raised an EAR Insurance claim. The insurer paid ₹14 lakhs for equipment replacement and repair. This support helped the contractor resume the project without delay or loss.
Fire Accident During Transformer Testing
In 2023, a transformer installation project in Bhopal faced a short-circuit during the testing phase. The fault led to a fire that damaged internal wiring, insulation, and nearby control boards. The insured contractor raised an EAR claim. The insurer paid ₹9.5 lakhs for damage repair and ₹1 lakh for clean-up and inspection costs. The cover helped the contractor avoid delays and complete the commissioning as planned.
Third-Party Property Damage During Erection
In 2021, during the erection of an overhead crane in a factory in Vadodara, a steel beam accidentally hit a boundary wall of the neighbouring property. The wall collapsed, leading to a legal notice from the property owner. The EAR Policy had third-party liability cover. The insurer paid ₹3 lakhs for wall reconstruction and legal charges. This prevented the contractor from facing out-of-pocket expenses.
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