Erection All Risks Insurance in Malaysia
Erection All Risks Insurance (EAR Insurance)
In Malaysia, Erection All Risks Insurance (EAR Insurance) is used and applied in reference to industrial plants, steel structures and equipment installation and erection projects. This is different from All Risks Insurance and Contractors All Risks Insurance.
An Erection All Risks Insurance is used for an installation, erection and commissioning of a structure or plant engineering project. These projects need to have start dates and end dates. Examples of work covered by Erection All Risks Insurance are:
- Telecommunications Towers and Structures
- Factory Equipment and Machinery
- Hospital Fixed Equipment and Structures
- Complete Industrial Plant Transfers
- And many more installation and commissioning projects
Erection All Risks Insurance Coverage
An Erection All Risks Insurance covers material damage and third party liabilities for a installation, erection and commissioning of a structure or plant engineering project.
This insurance plan is treated as a comprehensive insurance to cover risks and damages to materials and harm to third parties on the premises’ work site, occurring during the period covered by the policy.
Material Damages Covered by Erection All Risks Insurance
This material damage covers all aspects of material damages to the sum insured as listed below.
- Complete Factory Materials if Related
- Structure to be Erected
- Machine to be Erected
- Freight and Customs Duties
- Costs of Erection Works
- Civil Engineering Works Involved
- Construction and Erection Equipment Involved
- Construction and Erection Machinery Involved
- Existing Principal’s Property on Premises
- Adjacent Buildings and Structures
- Removal of Debris due to Loss
- Expediting Freight
- Overtime Work
Third Party Liability Covered by Contractors All Risks Insurance
This third party liability is liability coverage only for authorized visitors to the site. An unauthorized visitor is not covered. Liability to workers is covered by a separate insurance policy, the Workman Compensation Insurance policy.
- Accidental Injury on Site
- Illness on Site
- Accidental Loss of Property
- Accidental Damage to Property
Perils covered by Contractors All Risks Insurance
Below are some of the perils covered by this insurance plan. This depends on insurer and and selection of perils and risks.
- Fire
- Explosion and Blasting
- Floods, Immersions and Inundation
- Volcanos, Earth Movements, Landslides
- Storms, Typhoons and Tsunamis
Erection All Risks Policy Coverage and Premium Calculation
This insurance is used to cover mechanical and electrical engineering projects with some civil works involved. These includes plant, machinery, equipment and steel structures project works as listed in the contract. These are works with a fixed duration of start date and estimated end date. Project work covered are industrial plants, equipment installation projects, worksite structures and equipment and mechanical engineering infrastructure like towers and bridges. Different insurers may have some specific differences. An experienced insurance agent will be best positioned to advice you on this.
This insurance premium is calculated based on the full value of the contract, the costs of making good the site, liability costs and possibly the replacement costs of insured line items. This will depend on what is filled into the proposal form and also on what is acceptable to the insurance company. Contact our experienced general business insurance agents to guide you on creating, comparing and evaluating the insurance proposals from different insurers.
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