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This branch of engineering insurance offers comprehensive and adequate protection against all the risks involved in the erection of machinery, plant and steel structures of any kind, as well as third-party claims in respect of property damage or bodily injury arising in connection with the execution of an erection project.
The cover commences directly after the unloading of the items to be insured at the site and continues until the erection work and testing operations have been completed.
Unlike Contractors All Risks where some rating guidelines exist, erection projects should be rated on their own merit. Contractors All Risks rating, however, provide a key guideline in rating EAR.

The Insured

  1. The manufacturers or suppliers of machinery of plant if they carry out the erection work or are responsible for it.
  2. The firms commissioned with the erection work.
  3. The purchaser of the machinery or the plant to be erected.

Scope of Cover

This policy covers erection of:

  1. Individual machine, apparatus and assemblies for such things as turbine, generators, steam boilers, compressors, etc.
  2. Complete power facilities and production plants e.g., power stations, steel works, chemical plants, furnaces, paper and textile factories, etc.
  3. Civil works directly connected to the erection project.

In addition it covers:

  • Machinery, plant and equipment required for erection e.g., cranes, masts, winches, welding machines, compressors, etc.
  • Property located on the site belonging to or held in trust or control of the insured.
  • Expenses incurred for the clearance of debris following a loss.
  • Additional expenses incurred for overtime, work on Sundays and Public Holidays.
  • Legal liability arising out of property damage or bodily injury suffered by third parties and occurring in connection with the erection work.

What is covered under EAR?

EAR insurance provides very wide cover. Almost any sudden and unforeseen loss or damage occurring to the property insured on the erection site during the period of insurance will be indemnified. The insurer will indemnify loss or damage due to the following causes:

  • Fire, lightning, explosion
  • Flood, inundation
  • Windstorm of any kind
  • Earthquake
  • Theft, burglary
  • Faults in erection
  • Negligence, lack of skill, lack of experience, malicious acts
  • Short-circuit, arcing, excess voltage
  • Excess pressure or vacuum, tearing apart on account of centrifugal force
  • Any other sudden and unforeseen event such as loss or damage due to collapse, foreign objects, on-site transport of items to be erected, etc.

Underwriting Considerations

The underwriter should review:

  1. The technical specification of the relevant project.
  2. The contract price
  3. The value of items to be erected.
  4. Lay out-plan and the flow chart of the production process.
  5. Geological, hydrological and meteorological data on the erection site.
  6. Erection time schedule and details on pre-storage facilities.
  7. Guard services (security) and firefighting facilities.

For assistance, contact our Customer Care teams on 0711-030140 and/or 0711-030105, email customercare@directline.co.ke or visit us at our various branches.

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