OVERVIEW

EAR policies are designed to cover the risk of loss arising out of the erection and installation of machinery, plant, and steel structures, including physical damage to the contract works, equipment, and machinery, and liability for third-party bodily injury or property damage arising out these operations.

The policy has two sections:

• Material Damage: Loss of or damage to the property insured including debris removal, dismantling or demolishing, propping and or shoring up following loss or destruction of the subject of indemnity.
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• Third Party Liability: Indemnify against all sums which is insured shall be legally liable to pay as damages and legal costs recoverable by any claimant against; Accidental Bodily injury including death to any person and third-party property damage.

The policy can be extended to cover periods of commissioning and testing.

The most common perils or losses covered under erection all risk includes but not limited to the following:

1. Fire and lightening
2. Flood, inundation

• Windstorm of any kind,

1. Earthquake
2. Riot, strike and civil commotion
3. Vandalism

• Theft, burglary
• Bad workmanship,

1. lack of skill, negligence, malicious acts or human error
2. landslides, subsidence, rockslides

Examples of property insurable under EAR include:

– Power generation, steel structures, Refineries, Distribution systems e,g Pipelines, power lines