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What Our Plans Cover
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Damage to plant and machinery duri...
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Damage during testing and commissi...
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Machinery in transit to site
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Fire
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Theft from site
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Third-party bodily injury and prop...
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Debris removal following an insure...
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Maintenance period after handover
Who Can Consider This Plan?
- A registered business, professional practice or organisation
- Activities within the classes the insurer writes
- Accurate disclosure of turnover, activities and territories
- Disclosure of all known circumstances that could give rise to a claim
- Compliance with any statutory licensing applicable to the activity
What May Not Be Covered?
- Defective design and defective material, subject to the wording
- Wear, tear and gradual deterioration
- Testing beyond the agreed testing period
- Liquidated damages and delay penalties
- Consequential loss of any kind
Always check the policy wording before you commit.
Why Choose Wealth & Covers?
- Expert advice to choose the right plan
- Plans from leading insurance companies
- Hassle-free process and documentation
- End-to-end support, including claim assistance
- Dedicated relationship manager
Our Insurance Partners
- Star Health Insurance
- Care Health Insurance
- Niva Bupa Health Insurance
- HDFC ERGO
- ICICI Lombard
- Bajaj Allianz
We represent multiple providers to help you find the most suitable option at the best price.
- Expert Guidance Personalised advice from experienced insurance professionals.
- End-to-End Support From choosing the right plan to claim assistance, we are with you always.
- Claims Assistance Hassle-free claim support to ensure you get what you deserve.
- Transparent Process Clear information, easy documentation and a hassle-free experience.
Overview
Erection all risk covers the installation and commissioning of plant and machinery: power equipment, industrial lines, turbines, pipelines and process installations. It is the mechanical counterpart to contractors' all risk, which covers civil works.
Its defining feature is testing and commissioning cover. When plant is first energised and run, stresses appear that were absent during installation, and a disproportionate share of erection losses occur in exactly that window. The testing period is therefore a specifically negotiated element of the policy rather than an afterthought.
Where a project has both civil and mechanical elements, the two policies have to be arranged so their boundary is clear. A gap between the civil contractor's cover and the erection cover is where claims fall between two insurers.
Who should consider it
Plant erection contractors, EPC contractors, equipment suppliers with installation obligations, and project owners commissioning new plant.
Benefits
- All-risk cover during erection and installation
- Testing and commissioning cover, where the highest risk sits
- Third-party liability arising from erection work
- Cover for machinery in transit to site
- Maintenance period cover after handover
- Meets the insurance requirement in most EPC contracts
What is covered, and what is not
Read the right-hand column first. It is the one that decides whether a claim is paid.
Typically covered
- Damage to plant and machinery during erection
- Damage during testing and commissioning, within the agreed period
- Machinery in transit to site, where included
- Fire, flood, storm and other natural perils
- Theft from site
- Third-party bodily injury and property damage
- Debris removal following an insured loss
- Maintenance period after handover
Typically not covered
- Defective design and defective material, subject to the wording
- Wear, tear and gradual deterioration
- Testing beyond the agreed testing period
- Liquidated damages and delay penalties
- Consequential loss of any kind
- Damage to existing plant, unless specifically included
- Loss of contract documents and drawings
- Operation after commercial operation has commenced
Inclusions and exclusions vary between providers and between plans from the same provider. The wording in your own policy document is what governs — we will walk you through it before you buy.
How it works with us
- 1 We map the exposure before choosing a policy What you do, who it touches, and where a claim would come from. Liability cover follows the exposure, not the industry label.
- 2 Trigger and retroactive date agreed first Occurrence or claims-made, and how far back the cover reaches. These decide more than the limit does.
- 3 Limits tested against a realistic worst case Not the average claim — the one that would matter. Defence costs are part of that calculation.
- 4 Underwriting and, for larger risks, a survey Insurers price liability on process and controls. Good documentation genuinely lowers the premium.
- 5 Policy issued, and notification process explained Late notification is the leading cause of declined liability claims. We make sure your team knows when to call.
Important considerations
The things a brochure tends to leave out. Read these before you decide.
- Negotiate the testing and commissioning period realistically. It is where erection losses cluster, and an under-length testing window leaves the riskiest phase uninsured.
- Where the project has civil and mechanical scopes, map the boundary between this policy and the contractors' all risk cover explicitly. Claims fall into that gap regularly.
- Existing plant you are working alongside is not automatically covered. Damage to it during erection is a frequent and expensive claim.
- Cover ends when commercial operation begins. From that point the operational property and machinery breakdown policies take over, and the handover date must be diarised.
- Insure on the completed installed value, including freight, duties and erection costs, not on the equipment purchase price alone.
Documents required
- Business registration and constitution documents
- Description of activities, products or services
- Annual turnover and, where relevant, export turnover
- Number of employees and details of contractors engaged
- Claims and incident history, usually for five years
- Existing policy schedules, where cover is being replaced
- Contracts specifying required indemnity limits, where applicable
Frequently Asked Questions
Why is the testing period treated separately?
Because that is when things break. Plant under test is subjected to stresses it has not seen during installation, and a disproportionate share of erection losses occur during commissioning. Insurers therefore price and limit that window specifically rather than treating it as part of the erection phase.
What is the difference between EAR and CAR?
Contractors' all risk covers civil works — buildings, roads, structures. Erection all risk covers installing plant and machinery. Projects with both scopes need both policies, arranged so that the boundary between them is unambiguous.
Is damage to existing plant covered?
Only if specifically included. Where you are installing new equipment inside an operating facility, damage to the existing plant is a real and frequent exposure that the base policy does not address.
When does cover end?
At the start of commercial operation, or at the end of the maintenance period where one is included. After that, operational property and machinery breakdown policies respond, and the handover has to be arranged deliberately.
What sum insured should I use?
The completed installed value — equipment cost plus freight, duties, erection and commissioning. Insuring on the equipment purchase price alone leaves out a substantial part of what it would cost to reinstate.
Want a shortlist instead of a catalogue?
Tell us the situation and an advisor comes back with two or three options that actually fit — and names what each one gives up.