Installing industrial machinery is a complex and risky process. A turbine being lifted into position can be dropped. Electrical wiring can be damaged during assembly. A generator can fail during testing. Each of these incidents can cost lakhs or even crores of rupees to fix.
Erection all risk insurance, also called EAR insurance, covers the machinery and equipment during the entire installation process. From the moment the equipment arrives at the site to the moment it is tested, commissioned, and handed over, EAR protects your investment.
Protect your machinery installation project with customized engineering cover
EAR insurance is a project based policy designed for projects that involve installing, erecting, or commissioning machinery and equipment. It covers damage to the equipment during transit to the site, storage, assembly, erection, testing, and commissioning.
Unlike CAR insurance, which focuses on civil construction (buildings, roads, bridges), EAR focuses on mechanical and electrical equipment installation. If your project involves setting up a factory, installing a power plant, or assembling an industrial production line, EAR is the right policy.
Civil vs Mechanical Scope: If your project combines civil groundwork with heavy mechanical installations, contractors often pair EAR with a Contractors All Risk Insurance policy for complete end-to-end protection.
Protection follows your capital equipment through every vulnerable stage of the engineering project.
Inland transit, loading, and unloading.
Protection against theft, fire, and weather.
Lifting, rigging, and mechanical fitting.
Cold testing, hot testing, and trial runs.
Final sign-off and project handover.
Comprehensive coverage across physical installation hazards, testing contingencies, and third-party liabilities.
The policy covers physical damage to the machinery during assembly and installation. This includes damage from dropping, collision, faulty workmanship, short circuits, electrical surges, fire, and human error. If a crane drops a piece of equipment during installation, the insurer pays for repair or replacement.
One of the unique features of EAR insurance is coverage during the testing phase. After the equipment is installed, it must be tested to ensure it works correctly. Damage that occurs during cold testing, hot testing, or trial runs is covered. Many other insurance products do not cover this phase.
If the installation work injures a third party or damages property belonging to others, this coverage pays the compensation and legal defence costs. Workers from other contractors, site visitors, and neighbouring property owners are all considered third parties.
Installation work can affect nearby structures, equipment, or utilities. If your erection work damages property that belongs to others, this extension covers the claim.
Many EAR policies cover the equipment during inland transit from the manufacturer or port to the project site. This protects against damage during loading, unloading, and transportation. For ocean shipments, explore dedicated Marine Insurance.
Understanding the critical distinctions between mechanical installation coverage (EAR) and civil engineering construction coverage (CAR).
Combined Project Scope: Some large projects involve both civil construction and machinery installation. In such cases, contractors may need both CAR and EAR policies to cover the full scope of work. For mobile construction equipment, review our Contractors Plant and Machinery Insurance.
EAR premiums depend on the total value of the equipment being installed, the type and complexity of the machinery, the project location and its risk profile, the installation period, and any extensions selected. Like CAR, the premium is typically a small percentage of the equipment value.
Specialized engineering and industrial project risk advisory
EAR insurance is a specialised product that requires understanding of both engineering risk and insurance coverage. Our IRDAI licensed advisors have experience insuring industrial installation projects across sectors. We compare policies from multiple insurers and help you choose coverage that matches the value and complexity of your equipment. With 5 years of experience, we ensure your machinery investment is protected from delivery to commissioning.
Answers regarding EAR definitions, CAR differences, testing protection, eligibility, and premium estimation
Protect your machinery installation project. Fill out the form or call 90 90 92 15 15 for a free erection all risk insurance quote.
Disclaimer: Coverage period includes erection, testing, and commissioning phases. Exclusions include defective design, normal wear and tear, and consequential losses unless specifically covered.