Erection All Risk (EAR) Insurance
Specifically designed to cover assembly, testing, and commissioning of electrical, mechanical, and industrial plant setups.
Understanding the Advisory Scope
Purpose & Scope
Protects industrial project setups from arrival of materials on site, through assembly and erection, up to the volatile testing and hot commissioning phase.
Why It Is Needed
Industrial plant assembly involves delicate machinery placement and highly volatile initial power-up/testing cycles. Standard insurance excludes testing-phase explosions or structural collapse during rigging.
Who Should Purchase
- Industrial Project Principals
- Turnkey Project Contractors (EPC)
- Equipment Manufacturer/Suppliers
- Factory Setup Engineers
Suitable Applications & Sectors
What the Policy Protects
Erection Hazards
Covers structural drops, failure of rigging, and assembly collapse accidents.
Testing Failures
Protects against explosions, short-circuits, or internal damage during commissioning.
Short Circuits
Covers electrical surges and insulation failure during initial power-up testing.
Natural Calamities
Covers damage to unassembled parts due to wind, storms, earthquake, or flooding.
Burglary & Theft
Secures high-value copper wiring, control panels, and modules from site theft.
Handling Mistakes
Covers drop-related cracks or alignment errors caused by assembly workers.
Optional Extensions Available
Third Party Liability (TPL) Extension
Covers legal liabilities for third-party bodily injuries or property damage arising out of construction activities.
Removal of Debris
Reimburses the cost of clearing site debris following an accidental damage or collapse to resume work quickly.
Escalation Clause
Allows automatic increase in Sum Insured (up to 15%) to absorb inflationary construction material cost rises.
Express Freight
Covers additional costs of rapid express transit for replacement parts to minimize project delays.
Air Freight Extension
Reimburses the premium cost of air-shipping crucial parts or replacement machinery from international suppliers.
Additional Customs Duty
Covers unexpected customs import duties levied on replacement machinery parts brought into India.
Cross Liability Cover
Treats each contractor/sub-contractor as a separate entity, covering liabilities between different parties on site.
Maintenance Period Cover
Extends coverage (Limited or Extended) for losses occurring during the post-construction maintenance/defect liability stage.
Transit Cover Extension
Protects construction materials and equipment during initial domestic inland transit to the project site.
Major Policy Exclusions
Manufacturer Faults
Losses caused by incorrect designs or material defects from the supplier.
Delay-in-Startup
Consequential losses, loss of business contracts, or delay penalties.
Corrosion & Rust
Gradual chemical oxidation, scaling, rusting, or atmospheric wear.
War & Nuclear Risk
Standard exclusions covering war, military operations, or radioactive damage.
Structured Claims Settlement Pipeline
Required Documents
- Signed EAR Claim Form with incident details
- Commissioning logbook records showing parameters prior to breakdown
- Repair and replacement component invoice sheets
- Technical analysis report from system designers/engineers
BP & AF Claims Advantage
Take comprehensive date-stamped photographs immediately after any site incident. Secure internal telemetry/datalogger logs before components are dismantled. Our specialist advocates handle direct negotiation with the insurers to ensure minimal deductibles and zero processing delay.
Claim Settlement Steps
Loss Intimation
Inform BP & AF immediately if testing parameters lead to failure.
Engineering Audit
Independent electrical/mechanical surveyor audits the assembly line.
Rebuild & Cost
Submit component quotes and data logs to the surveyor.
Disbursement
Insurers settle replacement costs to restore assembly line operations.
Frequently Asked Questions
Request a Placement Proposal
Provide your business parameters below. An Engineering Risk Advisor will structure custom placement slips across top underwriters.
Related Engineering Coverages
Most operations require integrated policies. Explore complementary engineering risk programmes.
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