What Is An Erection All Risk Insurance Policy?

General Contractors, Subcontractors, Buyers, or Owners

To secure financial protection against the high cost of repairing or replacing valuable machinery or equipment in case of physical loss or damage during erection.

Equipment Manufacturers and Suppliers

To safeguard their financial investment and recover potential losses if the insured property sustains damage during the erection or installation process.

Project Owners

To minimise financial risks arising from machinery or equipment damage during erection and ensure that project timelines remain on track.

To Protect High-value Engineering and Erection Projects

Erection and installation of machinery, especially in high-value projects, need significant financial investment. Unexpected events can damage the equipment, which can lead to major financial losses. These losses can be covered by the EAR policy.

To Ensure Comprehensive Coverage

EAR policy in construction and installation covers a wide range of risks, including accidental damages, natural calamities, third-party liabilities and more.

The coverage begins right from the unloading of the equipment at the site and continues through erection, testing, and commissioning.

To Cover the Cost of Repair or Replacement

Repairing or replacing damaged machinery can lead to significant expenses. With the EAR Insurance policy, businesses can cover these expenses and resume the project work.

To Comply with Contractual Agreements

Contractors are often liable for financial losses arising from physical loss or damage during erection. Erection All Risk Insurance helps meet these requirements.

• Erection of a machine or a complete plant.
• Laying of water pipelines.
• Installation of a power plant.
• Installation of electronic equipment, such as computers, servers, etc.
• Electrification of commercial or residential buildings.
• Installation of fire-fighting systems.
• Installation of sewage treatment plants.

Ensures Business Continuity and Project Flow

Unexpected events during erection or installation can disrupt progress at the site. With an EAR policy, businesses can recover losses, repair or replace equipment, and resume operations without major delays.

Builds Trust with Clients and Stakeholders

For projects using high-value equipment, having Erection All Risk Insurance reassures the clients and stakeholders that the work will progress even if unforeseen incidents occur, building trust.

Customisable to Project Needs and Scale

Erection All Risk Insurance provides the flexibility to customise the coverage as per your project’s specific requirements. Optional add-ons can be included to enhance coverage and ensure complete protection.

Suitable for Industrial Projects

Industrial projects, such as the construction of power plants, laying of water pipelines, and electrification of commercial or residential buildings, need the erection of high-value equipment or machinery at different phases. EAR policy coverage is especially beneficial for such projects.

Material Damage

Covers repair or replacement expenses for loss or damage to the plant or machinery being erected or installed.

Third-party Liabilities

Legal liabilities arising from accidental damage to third-party property or injury/death of third parties caused during erection works.

Natural Disasters

Loss or damage resulting from natural calamities, such as floods, storms, earthquakes, hurricanes, cyclones, and
more.

Human Acts

Loss or damage due to man-made events like strikes, riots or other malicious acts.

Commissioning Perils

Risks during erection and testing, such as short circuits, explosions, testing, insulation failures, and similar incidents.

Area-specific Risks

Damage caused by location-specific risks, such as fire, burglary and explosions.

Handling-related Risks

Damages arising from equipment handling, such as collisions, accidents, or failures of cranes and tackles.

Removing Debris

Cost of clearing debris immediately after an insured incident, up to the specified limit.

Please note: Inclusions are subject to specific terms and conditions. Please review the policy document for complete details.

General Exclusions

Consequential losses and the excess amount payable by the insured.

Slow Degradation and Faulty Design

Loss or damage caused by regular wear and tear, faulty design, or use of defective materials.

Penalties

Any fines, penalties, or financial losses arising from delays or failure to meet contractual agreements.

Personal Belongings

Loss or damage to property of the owner, contractor, or employees involved in the project.

Injuries to Employees

Bodily injuries or death suffered by employees or workers during erection activities and financial compensation
liabilities. These risks can be covered separately under the Workmen’s Compensation Insurance Policy.

War, Terrorism, and Nuclear Radiation

Loss or damage due to war or war-like situations, nuclear radiation, or terrorism.

Please note: This is a general list of exclusions. For the detailed list, please refer to the policy document.

Owner’s Surrounding Property

Covers the loss or damage to the owner’s or contractor’s surrounding property caused by the erection or testing works.

Express Freight/ Air Freight

Covers transportation expenses incurred towards bringing the required materials through express services or via air transport to prevent project delays.

Overtime Wages

Covers additional costs arising from overtime wages paid to workers, including work done during holidays.

Any individual or business involved in the erection or installation of a plant, machinery, or equipment can purchase the EAR policy coverage.

Key points on eligibility criteria include:

• The project for which the machinery or equipment is being erected or installed must be legally approved as per government regulations.
• Complete details must be provided, including the name of the principal or contractor, location, cost of erection or installation, testing period, and any add-ons required.
• The nature of the project, cost of erection and installation, and the duration of erection and testing should align with the policy terms and conditions.

Trust and Reliability

With over 20 years of experience in the insurance industry, TATA AIG brings you trusted financial protection backed by reliable service.

Expertise in Engineering Insurance

We offer curated insurance solutions, such as Contractors’ Plant and Machinery Insurance, Contractors’ All Risk Insurance, and Erection All Risk Insurance, each designed for specific requirements.

Customer-first Approach

Our policies are designed with business requirements in mind, focusing on protection against potential financial risks.

Expert Guidance

Our team helps you assess your requirements, evaluate risks, and customise the EAR policy coverage to suit your specific business needs.

Wider Coverage Options

Our Erection All Risk policy covers a wide range of projects, including the erection or installation of power plants, sewage treatment plants, and fire-fighting systems.

Seamless Digital Services

With the TATA AIG app and multiple communication options available on our contact us page, you get easy access to personalised guidance and quick support whenever you need it.

Notify TATA AIG

Inform TATA AIG about the incident both in writing and over the phone. You can refer to our contact us page for further details. Explain the nature and extent of the loss or damage.

Preserve the Damaged Material

A surveyor will be assigned to assess the damage that occurred during erection. Take necessary steps to preserve the damaged parts to prevent further loss.

In case of theft or burglary, inform the Police immediately.

Submit Essential Documents

Provide the required details and submit the necessary documents.

Claim Settlement

We will review your documents. If your claim is approved, the amount will be settled for the applicable losses or damages.

Please note: Claim requests may not be processed if the incident is not reported within 14 days.

Erecting or installing a plant, machinery, or equipment involves a significant investment. From the cost of the machinery to the expenses involved in erection, the overall investment value can be substantial.

In the event of an unexpected incident, physical loss or damage can result in high repair or replacement costs. And without timely repairs, the project could face major disruptions.

An Erection All Risk policy ensures comprehensive coverage for repair and replacement costs as well as third-party liabilities.

TATA AIG offers SME Insurance plans that cover a wide range of risks affecting businesses across diverse industries.

For projects involving the erection or installation of equipment, the EAR policy provides essential financial protection during one of the crucial phases of the project.