Erection All Risk Insurance (E.A.R)

Askari Erection All Risk insurance offers you an all-inclusive cover for your project against the exposure to all physical risks, right from the warehouse of the supplier through erection, testing to its commissioning at the site. The Insured under the EAR Policy is normally:
The manufacturer or supplier of machinery or plant if he carries out the erection work or is responsible for it, or
The firm commissioned with erection work, or
The purchase of machinery or plant to be erected.

EAR provide protection against

  • Losses arising from unforeseen and sudden,
  • Physical loss or damage occurring during erection and testing from whatever cause not specifically excluded,
  • Accidental damage during transit, Fire and act of God perils,
  • Theft,
  • burglary,
  • Faults in erection
  • Negligence,
  • Lack of skill and experience in erection
  • Malicious acts,               
  • Explosion,
  • Collapse,
  • Short circuit, arcing, excess voltage
  • Any sudden and unforeseen loss or damage occurring to the property insured on the erection site during the period of transit storage, erection, testing and commissioning will be indemnified.
  • This policy provides Material Damage Cover and has Third Party Liability cover as well with additional premium. Maintenance period coverage is also provided.

The policy can be taken jointly or separately by

  • The Principal,
  • Contractor or Sub-Contractor
  • The sum insured selected under section I should not be less than the completely erected value of the property inclusive of estimated freights, customs duty, erection cost etc.
  • In case of long term contracts, there is bound to be escalation in prices i.e. prime cost.             The basic policy will pay only as per the original cost and prices. However escalation clause can be opted for, under which escalation up to 50%, can be selected to take care       of such increase in prices during the policy period.
  • The sum insured shall be adjustable on completion of the erection, on the basis of actual               values incurred by the insured in respect of freights, handling charges, customs dues, cost of erection etc. and premium adjusted accordingly.
  • The sum insured under section II should represent the per accident limit (the maximum legal liability that may fall on the insured as a result of an accident in the insured's site). The limit per policy period should be fixed taking into account the maximum number of    such accidents which can reasonably be expected to occur.
  • Construction Plant & Equipment
  • Expediting expenses
  • Insured’s surrounding property
  • Maintenance period Cover
  • Testing
  • Sub-Contractor
  • Transit
  • Loss or damage due to faulty design, defective material or casting, bad workmanship other than faults in erection. This exclusion is limited to the items immediately affected and does not apply to any consequential loss to correctly executed items.
  • Cost necessary for rectification or correction of any error during erection unless resulting in physical loss or damage.
  • Loss or damage due to gradual deterioration, atmospheric condition, rusting etc.
  • Loss discovered only at the time of taking inventory.
  • Loss arising out of penalty for delay, non-fulfillment of terms of contract.
  • It is practice to apply a deductible to claims as neither the client nor the insurer wishes to be troubled with handling small losses. Minor mishaps are inevitable on a Insured site and are usually reckoned in the risk.
  • To comply with client wishes (e.g.  Contract conditions, financial policy or risk management programme), higher deductibles may be applied, with suitable reduction in premium.
  • Proposal Form dully filled, signed and stamped.
  • Complete breakup of sum insured.
  • Site Survey report/Geo Technical report
  • Detailed Bar Chart/Work Schedule.
  • Soil Investigation.
  • Method Statement.
  • Drawings.
  • Bill of Quantity.
  • Metrological data and safety precautions during the project period.
  • Contractor’s Profile