Engineering Insurance

Erection All Risk(EAR)


Erection All Risk

Erection all risks cover is similar to contractors all risk insurance. With erection all risks, the basic components are normally not constructed on site, but are assembled and installed e.g. bridge construction, powerful transmitters, large storage installations, etc.  

It particularly suited to testing and commissioning large industrial projects.

Scope of cover:

It provides cover towards the material under erecting as well as liability for third party against loss arises due to:

  • fire, explosion, soil subsidence and settlement, avalanche, land slide and  natural disasters;
  • explosion of pressurized gas vessels, boilers and other engineering and hydraulic engineering equipment, devices, machinery and other similar installations;
  • any other sudden and unforeseen events on the construction site that are not excluded from the policy or by insurance terms;


1. Some of the exclusions which are applying to all type of cover in the policy are:

  • War, Civil war, nuclear reaction,
  • willful act of the insured,
  • cessation of works  and contamination;

2. Some of exclusions applying to separate section of the cover are:

a) loss or damage to materials caused by:

  • consequential loss,
  • faulty design;
  • rectification of aesthetic defects of structure not relating to any physical damage due to any accident, or of material defects or of workmanship;

b) Liability of insured consequent upon:

  • Bodily injury to employees of the principal(s) or any other firm connected with the project which or part of which is insured under property cover or members of their families;
  • Loss of/or damage to property belonging to or held in care, custody or control of the  principal(s) or any other firm connected with the project or part of which is insured under property cover,
  • Any accident caused by vehicles licensed for general road use or by waterborne vessels or aircraft;

An overview

Nyala Insurance Share Company (NISCO) was founded in July 1995 following the liberalization of the insurance business to the private sector in 1994 with the Licensing and Supervision of Insurance Business Proclamation No. 85/1994. Read more...


Apart from its major investments in real estates in the downtowns of Addis Ababa, Bahir Dar and Nazareth, Nyala Insurance selectively invests in various financial institutions like Dashen Bank, which have potentially high investment returns. Read more...


Contact us

Protection House, Mickey Leland Street

Tel: +251-11-6626679/80/76