This policy is designed to cover the risk of loss arising out of the erection and installation of machinery, plant and steel structures including physical damage to the contract works, equipment and machinery and liability for third-party bodily injury or property damage arising out of these operations. Coverage for delay in start-up costs is typically an optional coverage.
Covered parties include the general contractor, subcontractors, and in some cases suppliers and manufacturers of equipment. Examples of the types of projects for which EAR coverage is typically purchased include power plants, manufacturing and fabrication facilities, water and wastewater treatment facilities, and telecommunications centers (particularly where the erection of signal towers is involved). Some insurers combine EAR and Contractors All Risks (CAR) covers. Although these terms are sometimes used interchangeably, there are some substantive differences.
Key benefits – covers risks involved in an erection project.This insurance covers all types of risks involved in the erection of machinery, plant and steel structures of any kind, as well third-party claims in respect of property damage or bodily-injury arising in connection with the execution of an erection project.
Coverage is on an ‘all-risks’ basis and in particular includes:
- Fire, lightning, explosion, aircraft damage
- Riot, strike, malicious act
- Flood, inundation, storm, cyclone and allied perils
- Landslide, subsidence and rockslide
- Burglary and theft
- Faults in erection
- Human errors, negligence.
- Short circuiting, arcing, excess voltage
- Electrical and mechanical breakdown
- Collapse, damage due to foreign objects, impact damages
Any other sudden, unforeseen, accidental damages not explicitly excluded.
Add-ons are available to extend your cover to:
- Cross liability
This is a cover where In the event of claim by one insured for which another insured covered by the same policy may be held liable, this endorsement covers the insured against whom the claim is made in the same manner as if separate policies had been issued. However, it does not operate to increase the insurance company’s overall limit of liability.
Normally under law people cannot sue themselves. As this policy insures many entities, this would preclude any of the insureds from suing another one of the insureds. However, a special Cross Liability Clause provides that each Society and its leaders is covered as if they were an individual insured so that they could sue each other if negligence were involved and bodily injury or property damage resulted.
The policy does not replace the Personal Liability Insurance that the members should carry for their protection for any personal liability of theirs outside their activities as a member. The policy does protect members when acting with or on behalf of the group, but their Personal Liability Insurance could be called upon if they personally caused bodily injury or property damage to another member.
- Third-party liability
- Cost of removal of debris
- Express freight, overtime charges
- Air freight
- Additional customs duty
- Escalation
- Owner’s surrounding property
- Storage risk at fabricator’s premises
- Maintenance cover
Main exclusions include:
- Loss or damage due to faulty design, defective material of casting and/or bad workmanship
- Manufacturing defects
- Loss or damage due to willful act or willful negligence
- Consequential loss
- Loss or damage due to war or warlike operations
- Loss or damage due to nuclear reaction, nuclear radiation or radioactive contamination
- Losses due to normal wear and tear, gradual deterioration
- Cessation of work
- Inventory losses