What does Erection All Risk policy cover?
Installation and Testing
The Erection All Risk insurance provides coverage against any physical damages or losses during erection or installation of any plant, machinery, and equipment. In other words, it covers damages during erection of either a single machine or an entire plant or factory. It also covers damages observed till completion of testing of the installed machinery/plant.
Contractors and Employers
A contractor or employer benefits from the Erection All Risk policy as it offers cover to all the parties included in all types of construction, such as contractors, equipment suppliers and manufacturers, as well as the owner. Any injury to workers due to mishaps or accidents is insured under Erection All Risk policy. It also protects against damages to property of third parties, or any injury to them during the installation process.
Mishaps or Disasters
Erection All Risk insurance policy offers protection against any event of man-made or natural disaster such as explosion, fire, short circuit, floods, landslides, cyclones, riots, strikes, theft etc. It also includes any mishap due to an error during the erection process of building or any human casualty due to an act of negligence.
Miscellaneous Expenses
Additionally, the Erection All Risk policy covers other expenses incurred during the installation or erection process such as third-party liability, freight expenses, cost for debris clearance, customs duty, damages to property, whether own or third party, etc.
What does Erection All Risk policy not cover?
The Erection All Risk insurance policy does not include intentional loss or damage occurring due to deliberate negligence. It also does not include any pause in work, any manufacturing defects, or loss in inventory.
Any damage or losses due to normal corrosion, as well as due to war or nuclear or radioactive reaction is also not covered under the policy.
To Conclude
The EAR policy cover is a great advantage if you are in the construction business since it is a comprehensive insurance protecting you against the risks of loss and damage during installation of plant or machinery, testing, commissioning of machinery, plant and equipment during construction process.
It also covers physical damages to machineries, human casualties, as well as third-party damages/ expenses. Therefore, it is an ideal solution to help you stay protected from installation costs and additional expenses.