If you are contractor or a construction worker, involved in initiating projects and completing them, then it is most likely that you will have a lot of tension on your mind regarding the structure’s strength and standing, timely completion etc. You will not want any risk factors ruining your project putting you and your client at a loss, which is why it is vital that you get an erection all risk insurance.
Erection All Risk (EAR) Insurance
The erection all risk insurance or EAR is a comprehensive cover against any possible damage or loss which might arise in your construction site during storage, erection, testing or commission stages.It provides protection during installation of machinery and plant, steel structures, physical damage to equipment, any liability to third party,bodily injuries and property damage arising out of the afore mentioned.It covers your projects against any damages or potential loss arising due to unforeseen circumstances and thereby defending your financial investment. The insurance will be provided till the project comes to a completion rather than on an annual basis.
Coverage provided by Erection All Risk insurance
- Riot, strike and any other malicious activities
- Flood, storm, cyclone and other natural calamities
- Fire, lightning, explosion and aircraft damage
- Landslide, rockslide
- Erection fault
- Theft and burglary
- Human errors and negligence
- Short circuit and voltage issues
- Mechanical and Electrical breakdown
- Collapse and damage due to external objects
- Sudden, unforeseen accidental damages
You may also pay additional premium and get coverage for the below aspects also like:
- Cross liability and Third party liability
- Debris removing and clearing cost
- Air Freight, express freight, holiday and overtime charges
- Additional customs duty
- Escalation
- Storage risk at fabricators premises
- Terrorism
- Owner’s surrounding property
- Maintenance cost
- Construction, machinery plants and equipment
Exclusions in Erection All Risk Insurance
The Erection All Risk Insurance does not cover the following:
- Loss or damage due to war or similar operations
- Manufacturing defects and faults like scratch in polished or painted surface
- Loss or damage due to faulty material, design or casting
- Loss or damage due to wilful act or negligence
- Loss or damage due to nuclear reactions or radioactive contamination
- Loss due to wear and tear, rust and gradual deterioration
- Inventory loss
- Loss or damage to files, data, drawings, bills, accounts, currency etc.
- Consequential loss
- Work termination, partial or total
- Rectification or correction cost encountered during erection not resulting in any physical damage.
- Policy excess will not be covered, which is the first amount of claim which the insured will have to bear.
Now that you are aware of the factors that will be covered while you are manning a construction or project site, you can take the necessary actions towards taking up an erection all risk insurance.
