- Retail Insurance
- Business Insurance
- Resources
- Claims
Comprehensive protection for installation, erection, testing, and commissioning risks across industrial and infrastructure projects.
Our insurance expert will reach out to you shortly to help you get started.
PRODUCT OVERVIEW
Erection All Risk (EAR) Insurance is a specialised engineering insurance policy that provides financial protection against accidental physical loss or damage occurring during the erection, installation, testing, and commissioning of machinery, plant, and industrial equipment. It is commonly used for industrial, infrastructure, manufacturing, and power projects involving high-value mechanical and electrical systems.
EAR Insurance helps businesses manage risks associated with handling, assembly, positioning, testing, and commissioning activities at project sites. Coverage generally starts from the unloading of materials at the site and continues until project completion or handover, as specified in the policy terms. In India, EAR Insurance is issued under engineering insurance guidelines approved by the Insurance Regulatory and Development Authority of India (IRDAI).
Reasons
Safeguards costly machinery, turbines, generators, electrical systems, and industrial installations against accidental damage.
Minimises the financial burden arising from repair, replacement, or reinstatement costs during project execution.
Many project owners, EPC contracts, lenders, and government tenders mandate EAR Insurance before project commencement.
Protects during testing phases where the probability of mechanical or electrical failure is significantly higher.
Helps projects continue with reduced disruption after unforeseen incidents.
Covers legal liabilities arising from accidental injury or property damage caused to third parties at the project site.
Demonstrates operational preparedness and professional project risk governance.
INDUSTRIES & PROJECTS
WHO SHOULD BUY
INCLUSIONS & EXCLUSIONS
Fire & Allied Perils
Coverage against fire, explosion, lightning, impact damage, and related accidental losses.
Natural Catastrophes
Protection against flood, storm, cyclone, landslide, inundation, and other natural events.
Accidental Damage During Erection
Covers damage from minor installation errors, voltage fluctuations, insulation failures, foreign particle ingress, vibration imbalance, or human handling mistakes, which can lead to substantial physical damage and costly project delays.
Mechanical & Electrical Failures
Coverage for sudden and accidental electrical or mechanical breakdown during testing and commissioning.
Theft & Burglary
Protection against theft of insured property at the project site, subject to policy conditions.
Human Error & Negligence
Coverage for accidental losses arising from operational mistakes, handling errors, or negligence during erection activities.
Testing & Commissioning Risks
Covers sudden and accidental damage arising during cold testing, hot testing, calibration, synchronisation, or trial operations of turbines, transformers, generators, boilers, and industrial systems.
Third-Party Liability
Coverage against legal liability arising from bodily injury or property damage caused to third parties.
Debris Removal Costs
Expenses incurred for clearing damaged materials after an insured event.
Wilful Negligence or Intentional Damage
Losses caused deliberately or due to intentional non-compliance.
Faulty Design or Defective Material
Damage arising solely from design defects, poor workmanship, or defective materials.
Normal Wear & Tear
Gradual deterioration, corrosion, erosion, rusting, or ageing-related damage.
Consequential Losses
Loss of profit, delay penalties, business interruption, or indirect financial losses unless specifically covered.
War & Nuclear Risks
Losses arising from war, invasion, terrorism (unless added), nuclear radiation, or radioactive contamination.
Cessation of Work
Losses resulting from abandonment or prolonged stoppage of work.
Inventory or Accounting Losses
Shortage discovered only during stock verification or audit.
Pre-Existing Damage
Damage existing before policy inception.
Contractual Penalties
Liquidated damages, performance penalties, or contractual fines.
Note: Coverage, inclusions, exclusions, and add-on availability may vary between insurers and policy wordings. Please refer to the policy schedule and wording for detailed terms and conditions.
ADD-ONS
Enhances liability protection for bodily injury and property damage claims.
Extends coverage during the maintenance period after project completion.
Covers higher debris clearance and disposal expenses.
Provides increased protection against project cost escalation during the policy period.
Covers urgent transportation costs for replacement equipment or parts.
Coverage for additional customs duty payable on imported replacement machinery.
Protects existing nearby property belonging to the insured.
Provides separate liability protection among insured parties under the same policy.
Covers additional labour expenses incurred for urgent repair work.
COVERFOX EDGE
Customised insurance solutions designed for engineering, infrastructure, manufacturing, and industrial projects.
Compare quotations, coverage options, extensions, and premiums from IRDAI-approved insurers in one place.
Dedicated support from experienced business insurance specialists for project-specific risk assessment.
Support across policy issuance, documentation, endorsements, renewals, and claims coordination.
Professional assistance throughout claim intimation, survey coordination, and settlement follow-ups.
Coverage solutions suitable for both single-machine installations and large industrial projects.
CLAIMS
Follow these steps to raise an Erection All Risk Insurance claim with assistance from Coverfox.
Inform us at help@coverfox.com immediately after the incident relating to EAR occurs.
Take necessary steps to minimise additional loss or damage at the project site.
The insurer appoints a surveyor to inspect the loss and assess the extent of damage.
The insurer reviews the submitted documents, policy coverage, and surveyor findings.
Approved claims are settled as per policy terms and admissible loss assessment.
CLAIM DOCUMENTS
The policy period generally covers the entire erection, installation, testing, and commissioning duration of the project.
Yes. EAR Insurance typically includes coverage during testing and commissioning phases, subject to specified duration and terms.
Yes. Third-party bodily injury and property damage liability can be covered under the policy.
While not legally mandatory in all cases, many contracts, lenders, and project owners require EAR Insurance before project execution.
Premium depends on project value, type of machinery, project duration, location, testing exposure, nature of installation, and selected add-ons.
Yes. Contractors, subcontractors, project owners, and suppliers may be jointly insured under the same policy.
Yes. Imported machinery and equipment can be covered, subject to declared values and policy terms.
Construction All Risk (CAR) Insurance primarily covers civil construction activities, while EAR Insurance focuses on the erection, installation, testing, and commissioning of machinery and equipment.
Terrorism coverage may be available as an optional extension, depending on the insurer.
Disclaimer
Erection All Risk Insurance coverage, inclusions, exclusions, terms, conditions, and add-on availability may vary between insurers and policy wordings. Claim settlement is subject to policy terms, project declarations, underwriting acceptance, and insurer assessment. Businesses should carefully review the policy schedule, coverage scope, exclusions, deductibles, and warranties before purchase.
