An Erection All Risks (EAR) policy protects Principals and Contractors, as well as Manufacturers and Suppliers, who are erecting machinery and plant, against financial loss as a result of any unforseen events that result in loss or damage to the property insured at the project site while it is being stored, erected, tested, and maintained.
EAR insurance was created to meet the needs of the market, which are rapidly changing due to advances in technology and the economic structure of projects of all sizes, whether large projects such as the construction of Thermal Power Stations, Oil Refineries, Fertilizer Plants, and other large projects, or small projects such as the installation of Computers and Electrical Equipment.
This insurance offers the client with comprehensive coverage for the following: –
If you are one of the following, then you are eligible for Erection All Risk Insurance Policy: –
The Policy is divided into two sections: –
Section I – It covers the cost of replacing or repairing property that has been lost, damaged, or destroyed due to any reason other than those specifically excluded in the Policy. The Policy will pay or make good all such loss or damage up to the amount indicated in the policy for each of the objects, but not more than the Total Sum Insured in total.
Section II of the policy covers:
a) Legal liability for unintentional loss or damage to other people’s property; and
b) Legal liability for fatal or non-fatal injuries caused by the construction of any property to anyone other than the Insured’s own employees, workmen, or employees of the owner of the works or premises.
The Policy also provides for payment of –
a) All costs and other expenditures of litigation recovered by any claimant from the Insured, according to the policy.
b) All costs or expenditures incurred by the Insured with the company’s written authorization.
These are some added benefits which can be availed by paying some nominal charges: –
The Company will not be liable under the Policy for loss or damage caused by: