Erection All Risk (EAR) Insurance is an engineering insurance policy that protects machinery, equipment, and industrial projects against accidental physical loss or damage during installation, erection, testing, and commissioning. It can also include third-party liability cover.

EAR Insurance is suitable for mechanical contractors, electrical contractors, EPC contractors, industrial contractors, manufacturers, project owners, engineering companies, plant installation contractors, and energy and utility companies.

Depending on the policy, EAR Insurance may cover machinery under installation, mechanical equipment, electrical equipment, accidental damage during erection, fire and explosion, theft (where covered), testing and commissioning risks, and third-party liability. Coverage varies according to the insurer and policy terms.

EAR Insurance can be arranged for projects such as factory installations, industrial plants, manufacturing facilities, power plants, water treatment plants, HVAC systems, elevators and escalators, solar power projects, electrical substations, and production lines.

Contractors All Risk Insurance mainly covers civil construction works such as buildings, roads, and infrastructure. Erection All Risk Insurance is specifically designed for projects involving the installation, erection, testing, and commissioning of machinery, mechanical equipment, and electrical systems.

Yes. Many EAR Insurance policies provide cover during the testing and commissioning phase, subject to the duration and conditions specified in the policy schedule.

Yes. Most EAR Insurance policies can include third-party liability cover, protecting against legal liability for accidental bodily injury or property damage caused to third parties during the project.

The premium is generally based on the project value, type of machinery, nature of installation, project duration, testing period, project location, third-party liability limit, and claims history.

Insurers commonly request the project description, contract value, scope of work, equipment details, project location, installation schedule, testing period, and contractor information. Additional documentation may be required depending on the project.

Yes. Imported machinery and equipment can generally be covered once declared to the insurer, subject to the policy terms and insured values.

Common exclusions may include normal wear and tear, faulty design, gradual deterioration, intentional damage, war and terrorism, mechanical breakdown after handover (unless separately insured), and contractual penalties. Always review the policy wording for the complete list of exclusions.

Yes. If the installation project takes longer than expected, many insurers allow the policy period to be extended, subject to approval and payment of any additional premium.

EAR Insurance generally begins when the equipment reaches the insured project site. Transit coverage is usually arranged under a separate Marine Cargo Insurance policy unless specifically included by endorsement.

If an insured loss occurs, notify the insurer immediately, take reasonable steps to minimise further damage where safe to do so, preserve the damaged property for inspection, submit photographs, reports, and supporting documents, and cooperate with the insurer or appointed loss adjuster throughout the claim process.

When comparing EAR Insurance policies, consider the scope of engineering cover, testing and commissioning period, third-party liability limits, policy exclusions, deductibles, optional extensions, claims support, and the insurer's experience with engineering and industrial risks. Comparing multiple insurers can help you select cover that aligns with your project's technical and contractual requirements.