Erection All Risks
Erection Risk Protectionc
Erection All Risks (EAR) policies provide essential protection for the risks associated with the erection and installation of machinery, plants, and steel structures. This includes coverage for physical damage to contract works, equipment, and machinery, as well as liability for third-party bodily injury or property damage that may arise during these operations.
As an “All Risks” policy, it encompasses a wide range of activities related to the erection, installation, testing, and commissioning of equipment, with specific exclusions clearly outlined in the policy. EAR insurance safeguards contractors and employers against physical loss or damage to their contract works, construction equipment, and machinery, ensuring comprehensive coverage for potential damages and liabilities.
What Does It Cover? (Material Damage)
- Accidental Damage
Covers unexpected physical damage to project assets.
- Natural Disasters
Provides protection from losses due to fire, storms, floods, earthquakes, and similar events.
- Structural Incidents
Safeguards against damages from collapse, collisions, and impact-related incidents.
- Theft and Malicious Acts
Covers losses from burglary, theft, and intentional property damage.
- Riot and Strike Damage
Protects against damage from riots, strikes, landslides, and civil disruptions.
What Does It Cover?(Common EAR Insurance Exclusions)
- Faulty Design
Excludes losses or damages resulting from defective or flawed design specifications.
- Poor Workmanship or Materials
Excludes damages arising from inferior materials, casting defects, or poor workmanship quality.
- Mechanical or Electrical Failure
Excludes losses due to breakdowns or malfunctions of erection-related machinery.
- Intentional Acts
Does not cover losses due to deliberate misconduct or negligence by the insured or their representatives.
- Consequential Losses
Excludes coverage for indirect losses, including penalties, performance shortfalls, or contract breaches.
- War and Nuclear Risks
No coverage for damages due to war, civil unrest, nuclear radiation, or contamination events.
What Does It Cover? (Third-Party Liability)
- Bodily Injury and Death
Covers accidental injuries or fatalities affecting third parties.
- Damage to Third-Party Property
Protects against unintentional damage to third-party assets during project activities.