To a large extent, industrial growth is dependent on large-scale installation projects such as power plants, manufacturing machinery, heavy equipment erection, and structural assembly operations. In case of such high value installations, even slight oversights and accidents may lead to dire financial consequences. Hence, a strong protection mechanism is what businesses need throughout the phase of the erection and installation.
Erection All Risk Insurance (generally termed as EAR insurance) provides comprehensive coverage for projects involving mechanical installation and erection works. It ensures protection against accidental damage and third-party liabilities during the stages of execution, commissioning, and testing.
This article explains what an EAR insurance policy covers, who will be benefited by it, how premiums are calculated as well as the best insurance brokers and insurers in India to get the most suitable insurance policy for your industrial installation projects.
Let’s start from scratch!
Erection All Risk Insurance: A Brief Overview
Erection All Risk Insurance is a specialized installation project insurance solution that protects machinery, equipment, steel structures, pressure plants, turbines, transformers, and other mechanical assets during erection and testing. Therefore, it ensures financial protection of businesses against unanticipated losses that may arise before the machinery becomes fully operational.
The losses that have been the main focus for this insurance coverage can include:
- Fire, explosion, and electrical accidents
- Collapse of erected structures
- Faulty operation or human error
- Theft, sabotage, or burglary
- Natural perils such as floods, cyclones, and earthquakes
From installation to commissioning — EAR insurance ensures project progress remains uninterrupted.
Who Needs EAR Insurance?
Any business involved in machinery erection or industrial installation must secure proper coverage. This includes:
- EPC contractors
- Engineering project companies
- Heavy machinery installation firms
- Power sector contractors
- Manufacturing plant owners
- Oil & gas infrastructure developers
If your project involves assembling expensive equipment, you must buy EAR insurance to avoid operational and financial disruptions.
What Does Erection All Risk Insurance Cover?
This insurance policy typically includes dual protections:
- Material Damage
Covers accidental loss or physical damage to equipment, machinery, structures, and additional construction aids like scaffolding and temporary work facilities. - Third-Party Liability
Protects against legal liabilities for accidental injury or property damage to external parties caused during erection work.
Popular add-ons to enhance EAR insurance include:
- Testing period extension
- Surrounding property damage cover
- Cross liability protection
- Debris removal expenses
- Terrorism cover
This ensures overall risk coverage throughout the installation lifecycle.
What Is Not Covered?
Typical major exclusions include:
- Normal mechanical breakdown after commissioning
- Wear and tear or corrosion
- Wilful negligence and contractual penalties
- Loss due to design flaws unless add-on purchased
Understanding exclusions helps strengthen compliance and avoid claim conflicts.
How Premiums Are Calculated for EAR Insurance
Pricing depends on project exposure and value. Common rating factors include:
- Total erection cost and machinery value
- Project type and technical complexities
- Testing phases and duration
- Site safety standards and risk controls
- Claims history of the contractor or project owner
An experienced insurance provider will design coverage to fit both risk level and budget requirements.
Best Insurance Brokers in India To Buy Erection All Risk Insurance
Industrial installation involves technical risk evaluation, and choosing the right insurance brokers ensures accurate coverage and smooth claim support.
- BimaKavach
BimaKavach has deep expertise in engineering and industrial risk insurance solutions. Their focused advisory ensures every installation project receives comprehensive coverage with minimized risk exposure.
Why businesses trust BimaKavach:
- Project-specific risk assessment and policy structuring
- Access to competitive options from top insurers in India
- End-to-end support from proposal to claims
- Transparent communication and quick onboarding
BimaKavach is the preferred partner for EPC firms and industrial companies seeking professional guidance.
- SecureNow
SecureNow enables digital access to EAR insurance coverage with efficient documentation and claim assistance tailored for medium and large industrial projects.
- PlanCover
PlanCover is well-suited for smaller industrial installations and provides fast advisory to match project budget and safety requirements.
Top 3 Insurers in India Providing Erection All Risk Insurance
Choosing experienced insurers helps ensure strong policy wording, risk inspection capabilities, and timely settlements.
- TATA AIG General Insurance
Offers robust protection for machinery installation projects with strong technical underwriting and engineering risk consulting.
- ICICI Lombard General Insurance
Known for extensive coverage flexibility, especially for critical infrastructure and large industrial plants.
- Bajaj Allianz General Insurance
Provides distinctive solutions for mechanical erection projects along with an efficient claim support and a network that is present all over the country.
Why EAR Insurance is Necessary for Industrial Projects
Installation works often need to encounter a plethora of uncertainties. For example, there can be issues with equipment testing or accidental mechanical failures. If there is no comprehensive insurance, businesses may face huge repair costs, liability claims, and unwanted project delays.
Erection All Risk Insurance is the instrument that ensures continuity of the insured business, its financial stability, and the confidence of the stakeholders throughout highly sensitive project phases.
Final Thoughts
Industrial installation can never be left exposed to risk. EAR insurance enables businesses to move forward with assurance that unforeseen events will not be the reason for the failure of an erection project.
If you run such a business, you would do well to partner with reliable insurance brokers like BimaKavach. They can help you secure the right insurance policy from top insurers that have strong engineering insurance expertise and are able to extend excellent support.
Get in touch with BimaKavach today to buy the most suitable EAR insurance policy for your upcoming project.
Protect Every Installation Project. Build with Confidence. Choose BimaKavach.
