Erection All Risk Policy Insurance
Further engineering policies provide protection against erection of plant and machinery while setting up a new industrial unit, power plants or hotel etc and these risks are covered under Erection All Risk insurance policy. This policy has all risks covered except listed exclusions under the policy. This policy almost operates like CAR insurance policy except some coverage related to machinery like testing and extended maintenances coverage. A very important add-on is coverage of Third Party risk. There is an extension available under CAR/EAR policy to cover Contractors’ Plant and Machinery up to the limit of 25 Lakh.