Engineering All Risk Insurance

Get several deeply researched insurance options in less than 30 seconds:

  • Cover plant, machinery and steel structures at erection site
  • Get quotes from top insurers such as Iffco Tokio, HDFC Ergo, ICICI Lombard and Tata AIG
  • Cover third party property damage and body injury
  • Waiver for exclusions of claims due to design defect
All fields required

Get quote if you agree to our Terms of Use and Privacy Policy

Number of Members


Thank You

We will call you back within 24 hours.

Leave a message and we'll call you back.

Advantages of Engineering All Risk Insurance

Wider Coverage
Erection all risk plan offers material damage and third party liability cover. Custom duty, Invoice value, Freight and other temporary/permanent costs are covered as a part of the insurance to offer a wider coverage.
Customized Cover
Policy can be designed to suit specifics of an engineering project. In addition to key coverages like material damage and third party liability, add-ons like design deffect and removal of debris can also be included.
Competitive Premium
We offer pre-negotiated premiums with leading private and public sector insurers to offer discounted rates. Option to pay premiums in installments is offered depending upon the size and tenure of the project.
Complete Coverage
EAR policy provide cover for all the stages of an under erection project that involves storage, testing, maintenance or commissioning. Extended maintenance period could also be offered for 12 to 24 months period

Benefits of Engineering All Risk Insurance

Material Damage Cover

Material Damage Cover

  • Engineering all risk insurance policy provides protection for machinery, equipment, civil work and other material present at the project site. Covers loss due to principal's surrounding property.
  • Policy covers perils such as fire, lightning, burglary, explosions, and natural disasters such earthquake & floods.
  • Additional to the material damage cost EAR policy also covers custom duty, freight, wages and other related expenses.
Covers Third Party Liability

Covers Third Party Liability

  • Project insurance covers legal liability due to damage caused to surrounding property or property held in trust or under custody of the insured. Liability arising due to fatal or non-fatal bodily injury to any third person is also covered.
  • Extensions are available to include cross-liability wherein a claim by a co-insured could also be defended
  • Legal costs such as lawyer's fee, court compensation, settlement cost and other case related expenses are covered in the policy.
Wider Extension Coverage

Wider Extension Coverage

  • Engineering insurance provides wider range of add-on coverage to offer a comprehensive cover for the under erection project. Covers testing period and extended maintenance period as key add-ons.
  • Other key extensions offered are Design Defect, Escalation Cost, Removal of Debris, and Expediting Expenses.
  • Clauses such as 72 hours, Co-Insurance, Waiver of Subrogation, 50:50 and Public Authority clause are covered to provide a complete coverage.


Engineering all risk insurance covers erection or installation of machinery, plant and equipment ranging from erection of single machine to a large manufacturing unit. Policy protects the business from the physical loss or damage of contract work from perils such as fire, lightning and natural catastrophe. Policy also covers legal liability claims arises due to third party bodily injury and property damage.
Wide range of add-ons are available under erection all risk policy. Some of the key extensions included are cross liability, express freight, air freight and maintenance cover. Policy also pays additionally for cost of removal of debris and professional fees. Testing period, design defect and Expediting expenses are also offered under the policy.
The key elements included under “all risks” of this policy are-
  • Riot, strike or any form of malicious act
  • Burglary & theft
  • All kinds of natural calamities-storm, cyclone, floods, inundation
  • Loss due to error and negligence
  • Collapse or damage caused from foreign objects
  • Damages due to fire, explosion and other such perils
  • Electrical or mechanical faults
Engineering all risk insurance policy generally excludes willful negligence, total or partial cessation of work, faulty design and consequential losses. Damage to the erection work due to war, radiation contamination and act of terrorism are also commonly excluded under the policy. Legal liability for the injury to own workmen is also excluded.
In case of any damage to the project, you should immediately intimate your insurance provider and share nature and extent of the loss or damage to the project. You should also take all the possible steps to minimize the loss. Insurer will then appoints the surveyor for the inspection of site. Assuming you have taken insurance from us, our team will work with you to submit all necessary documents required by insurance company during the claim process.
In case of loss or damage to the machinery there are two ways in which the claim can be settled under erection all risk cover. In case of damage which can be repaired, the cost of repairs to restore the item to its original conditioned is paid. In case of total damage or loss, the total value of the item will be paid by the insurance company after deducting excess and other mentioned amounts in the policy.
The common documents required for filing the claim are:
  • Duly filled claim form
  • Letter of award and bill of quantity
  • Purchase or delivery order details
  • Damage report on extent of damage
  • Estimated cost of repair or lost product
In addition to these documents, the insurer can ask for some additional documents based on the type of claim.
In order to ensure claim settlement, you should make sure that you provide correct information in the claim form, because major reason for claim denial is inaccurate information provided during claim. It is also very important to intimate the insurance company as soon as the claim occurs so that surveyor can be appointed timely. Further, you have to make sure all the claim documents required by insurance company are timely submitted.
Insurance companies have laid down the premium rates for various types of erection projects. For instance, the premium rates vary between 0.2%-0.5% of sum insured for first month. Then there is an additional rate of 0.002%-0.005% of sum insured per month beyond one month. Premium for add-on coverage will be additionally charged depending upon on coverages opted in the policy. Policy premium also get effected as per project's earthquake zone.
Yes, you can cover the machinery and equipment purchased even after the commencement of the erection of the project. In such cases, the process of endorsement comes into picture where by paying an extra premium additional assets can be covered. It is advisable to maintain a cash deposit with the insurer in case you are expecting the value of the project change in middle of the policy so that the policy can cover the additional equipment from the date of arrival of items on site.
For your erection all risk insurance, it is advised to take help of an insurance advisors such as SecureNow. To start with we will help you design the coverage as per your requirements, we will then provide negotiated quotes from various insurers. Once the final insurer is selected then we help you with documentation and payment process. After completion of the payment and documentation process, your erection all risk insurance coverage will start.
Yes, you can cover the damages to your project arises due to design defect. In a standard policy, damage due to design is an exclusion but by paying additional premium you can cover the design defect in the policy. There are various types of design defect cover like design defect-3, design defect-4 which can be covered in the policy as an add-on at an extra premium. We recommend all our clients to cover this cover in their erection all risk insurance.
Yes, testing period of the project after the completion, is covered under erection all risk insurance. Typically testing period for most of the project is between 30 to 60 days before it is handed over for commissioning. Although, you can cover testing period upto 12 months aswell with premium charged as per the total tenure you choose for.
The policy is particularly relevant for industrial plants and machinery construction, windmill farms, solar energy farms, etc where setting up a new apparatus entails certain risks that may have overwhelming financial consequences. Generally this policy is taken by contractors, sub-contractors, and principal of the project to cover the entire erection process at a site for a given period of time.
There are three types of erection all risk policy-
1. Standard Policy - This policy covers material damage from fire and natural perils and third party liability.
2. Policy with limited add-on - Additionally to the standard policy, it offers few key add-ons such as damage to owners surrounding property and third party liability with cross liability.
3. Comprehensive Policy - The policy provides holistic cover by covering exclusions aswell such design defect and other important clauses such as waiver subrogation and contribution.
Mainly the excess amount gets deducted from the claim amount during the final settlement. This excess is standard across all the EAR policies of various insurers as prescribed under the tariff by IRDA. Generally, for normal claims excess is 5% of the claim amount subject to minimum of Rs 50,000 (this may defer as per different coverage and insurer). The excess may defer for claims under design defect and theft & burglary cover.


What is the basis of indemnity in Engineering all risk insurance?

An engineering all risk insurance policy covers the loss arising out of the erection and installation of machinery, plant and steel structures. It protects coverage against physical damage to the contract works, equipment, and machinery. This policy also covers the liability for third-party bodily injury or property damage...
Read More

What are Some Items Typically Excluded From Property Insurance Policy?

A property insurance is an umbrella term which comprises of various insurance policies like office insurance, construction all risk policy, engineering all risk policy, factory & warehouse insurance, motor fleet insurance and art insurance, etc.

Though, the purpose of a property insurance is to offer complete coverage...
Read More

What is Excess in Engineering All Risk Insurance and How does it affect the premium of Policy?

The engineering all risk insurance policy covers the insured against any unforeseen and physical loss of or damage to the insured items. Such damage to plant or machinery may necessitate its repair or replacement. In engineering all risk insurance policy, an excess clause is included. The excess clause states that the asset...
Read More

Search Insuropedia - Enter Your Question.

Why SecureNow

Deep Product

Leverage specialized underwriters and international experts unique for each line of business.


Works with all the leading insurers to discover the best price for most comprehensive features.

Quick Turnaround

Get cover note issued within 24 hours. All service requests are resolved in pre-defined TATs.

Strong Claims

Manage all aspects of claim including insurer, surveyor & TPA co-ordination, and documentation.


Receive risk diagnostic reports, themographic studies, policy analysis, and wellness programs.

Policy Administration System

Access your insurance policies through single login; service requests, MIS, and renewal alerts.