Erection All Risk (EAR) Insurance
Erection All Risk insurance provides comprehensive coverage during the installation, erection, and commissioning of machinery, plant, equipment, and steel or metal structures. It is specifically designed for engineering projects where precision, heavy lifting, and complex technical processes create unique risk exposures that standard property insurance cannot address.
What Does It Cover?
EAR insurance provides all-risk protection from the moment equipment arrives at site through testing and commissioning.
Erection Works
Covers the full value of machinery, plant, and equipment being erected or installed against all risks of physical loss or damage — including faulty workmanship, human error, short circuits, and structural collapse during erection.
Testing & Commissioning
Extends coverage through the critical testing and commissioning phase, when machinery is first operated under load conditions. This is often the highest-risk phase, as latent defects and installation errors may surface.
Transit to Site
Coverage for machinery and equipment during inland transit from the supplier or port to the project site. Protects against damage during loading, unloading, and transportation — a critical gap not covered by marine cargo policies.
Third-Party Liability
Protection against legal liability for bodily injury to third parties or damage to third-party property arising out of the erection activities. Covers compensation awards, legal defense costs, and court expenses.
Surrounding Property
Covers damage to existing buildings, structures, and installations in the vicinity of the erection site caused by the erection activities — including vibration damage, accidental impact, and structural interference.
Maintenance Cover
Provides coverage during the post-commissioning maintenance or guarantee period — typically 12 months. Covers damage that occurs during maintenance visits and damage discovered during this period traceable to erection-phase causes.
Existing Property
Coverage for existing property belonging to the principal or contractor at the erection site that may be damaged during the course of erection work — such as existing buildings, foundations, or operational equipment.
Who Needs This?
EAR insurance is essential for any project involving the installation or erection of machinery, plant, or metal structures.
Engineering Firms
Mechanical, electrical, and structural engineering companies that design and execute erection projects for industrial clients across sectors.
Plant Installers
Companies specializing in the installation of industrial plant, processing equipment, conveyor systems, boilers, turbines, and other heavy machinery.
Power Projects
Solar power plants, wind farms, thermal power stations, and hydroelectric projects where the erection of generation equipment represents a major capital investment.
Factory Setup Companies
Businesses setting up new manufacturing facilities, assembly lines, or production units that require the installation of specialized machinery and equipment.
Telecom & Infrastructure
Telecom tower installation, transmission line erection, pipeline laying, and other infrastructure projects involving the erection of steel structures and equipment.
Key Benefits
Why EAR insurance is indispensable for engineering and erection projects.
Covers the Highest-Risk Phase
The erection and commissioning phase carries the highest risk of damage to expensive machinery. EAR provides specialized coverage precisely when it is needed most — during installation, testing, and first operation.
Protects Capital Investment
Heavy machinery and industrial equipment represent millions in capital expenditure. EAR ensures that a single installation mishap does not result in catastrophic financial loss for the project stakeholders.
Contractual Requirement
Most engineering contracts and turnkey project agreements mandate EAR insurance. It is frequently a prerequisite for project financing, contract awards, and regulatory compliance.
End-to-End Project Coverage
From transit to site through erection, testing, commissioning, and maintenance — EAR provides a seamless umbrella of coverage across every phase of the installation lifecycle.