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Erection All Risk Insurance

Protecting machinery installation and commissioning risks

Erection All Risk (EAR) Insurance is a project-specific policy covering physical loss or damage to plant, machinery, and equipment during erection, installation, testing, and commissioning. It responds to sudden and unforeseen incidents at site, subject to policy terms and exclusions.
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Why Erection All Risk Insurance Matters

Installation and commissioning phases carry the highest technical risk in capital projects. Failures during erection or testing can cause major physical damage and delays. EAR Insurance helps protect project investments and supports contractual, lender, and commissioning obligations.

Key Benefits

Covers accidental damage during erection activities

Protects machinery during installation at site

Includes fire, explosion, and natural perils

Helps manage reinstatement after technical failures

Supports project continuity during incidents

Add-on options available for maintenance period

What’s Typically Covered & What’s Not

  • Typically Covered
  • Installation damage
  • Testing failures
  • Fire explosion
  • Machinery collapse
  • Third-party damage
  • Typically Not Covered
  • Design defects
  • Faulty workmanship
  • Wear tear
  • Delay penalties
  • Business losses

Who Should Consider Erection All Risk Insurance

Erection All Risk Insurance is essential for power generation projects, industrial manufacturing plants, oil and gas facilities, infrastructure electrification works, and building services installations such as elevators and HVAC systems. It is most relevant where testing and commissioning risks are significant. The cover may be less critical for simple, low-value installations with minimal technical complexity.

Why Choose Avalani

As IRDAI-licensed insurance brokers in Gujarat, we put your business and needs first. You get customised coverage, verified valuations, claim assistance, and quotes from 20+ insurers for the best value.
Protecting What You’ve Built.
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FAQs

What is Erection All Risk Insurance?
Covers machinery and equipment during erection, testing, and commissioning phases.
Yes. It is structured for a defined project and installation period.
Yes. Testing and commissioning are core components, subject to limits.
No. These remain contractor or supplier liabilities.
Usually included, subject to specified limits and conditions.
Maintenance period cover may be added by endorsement.