Erection All Risks

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Abu Dhabi: +971 2 626 66 69

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8 AM to 5 PM, Sunday to Thursday.

What is an Erection All Risks policy?

Erection All Risks (EAR) policies are designed to cover the risk of loss arising from the erection and installation of machinery, plant and steel structures. This could include physical damage to the contract works, equipment and machinery, and liability for third-party bodily injury or property damage arising out of these operations.

This is an “All Risks” policy covering various activities of erection/installation, testing, and commissioning of plant and equipment (except specific exclusions as mentioned in the policy).

It protects a contractor or employer against physical loss or damage to the contract works, construction plant and equipment, or machinery. It also includes cover for damage to property and bodily damage of third parties.

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What Is Usually Covered?

EAR insurance provides a wide net cover. Almost all loss or damage to the property insured on the site during the period of insurance will be covered.

This cover is subject to a few exclusions which are internationally applied and are common to the insurance industry. The exclusions are usually named in the policy and could comprise of:
  • Loss or damage due to faulty design.
  • Defective material or casting.
  • Bad workmanship.
  • Loss of or damage to erection machinery and equipment due to mechanical and/or electrical breakdown or derangement.
  • Loss or damage due to willful acts or willful negligence of the Insured or of his representatives.
  • Consequential loss of any kind or description whatsoever, such as claims from penalties, losses due to delay, lack of performance, loss of contract.
  • Loss or damage due to war or warlike operations, civil commotion of any kind as well as acts on the part of strikers and locked-out persons.
  • Loss or damage due to nuclear reaction, nuclear radiation, radioactive contamination.

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