Cover for damage occurring during the installation and testing of industrial equipment and machinery.
Erection all risks insurance covers physical damage occurring during the installation, assembly and commissioning of industrial equipment, machinery and technical installations. While contractors all risks insurance mainly targets civil engineering works, erection insurance targets capital goods: turbines, boilers, production lines, wind turbines, transformers. It covers the hazards of handling, erection error, testing and running-in, a particularly delicate phase where equipment is stressed for the first time and where costly losses frequently occur. The testing period is a major underwriting focus, since the failure of a high-value new piece of equipment can generate significant damage and delayed commissioning. For energy and industrial projects, erection insurance often combines with advance loss of profits cover and requires sharp technical expertise on the insured processes and equipment.
A turbine damaged during its testing phase on a power plant project falls under erection all risks cover, at a particularly exposed point of the project.
EAR, tous risques montage, erection all risks, TRM