EAR is the other branch of contract works insurance (EAR) which essentially covers all risks involved in the erection and installation of machinery, plant & equipments and steel structures of many different types. EAR insurance policy protects the project companies, suppliers, manufacturers of the machinery or plant or contractors who carry out the erection work or is responsible for it. A supply and erection contract typically requires the contractor to arrange insurance against physical damage from any cause to the items to be supplied and erected, both whilst in transit and after arrival at the erection site. The insurance usually includes the erection tools and tackle. Erection projects are usually exposed to the following perils:
- Fire , lightning , explosion
- Earthquake
- Flood & Inundation
- Windstorm
- Subsidence or collapse
- Theft or burglary
- Faulty workmanship,
- Malicious acts
- Faults in erection
- Negligence, lack of skill, lack of experience
- Short circuiting, arcing, excess voltage
- Excess pressure or vacuum, destruction due to centrifugal force
- Any other unforeseen or sudden event such as collapse
EAR insurance cover can be extended to cover the following:
Removal of Debris
Surrounding property
Errors and Omissions
Loss minimization expenses
Professional Fees
Automatic Reinstatement of Sum Insured
Expediting Expenses
Escalation Prevention of Access
Offsite storage and fabrication
Removal to place of safety
Time Adjustment (72 Hours clause)
Waiver of subrogation
Non-vitiation clause
On Account Payment
Free issue materials
Extended Maintenance etc.
EAR insurance requires the following information
Technical specification of the relevant project, contract price and value of items
Experience and expertise of the erection firm
Flow chart of the production process and a lay out plan where necessary
Geological, hydrological and meteorological data as applicable
Supply and erection time schedule and detail of pre storage facilities with notes on security and fire prevention in storage and on
site
Availability of replacement parts or machines and extra costs associated therewith e.g. imported machinery
