# Erection all risks insurance in Germany: covering plant until handover > If your company installs machinery, production lines or steel structures at a customer's site in Germany, you usually carry the risk of damage until the customer formally accepts the work. Drop a component from the crane, blow a control cabinet on first start-up or lose cable to thieves overnight, and you rebuild at your own cost. Erection all risks insurance, Montageversicherung in German, is the property cover for that period, test runs included. Quelle/Source: https://www.nammert.com/en/insurance-broker-erection-all-risks.php Updated: 2026-11-04 ## Do I need erection all risks cover for an installation job in Germany? In most cases yes, if you install equipment on site and bear the risk until acceptance. Under a German works contract that is the default position (§ 644 BGB). Your general liability policy will not help, because it pays for damage to other people's property, not to your own work before handover. Pure suppliers without installation and service firms usually do not need it. ## At a glance - **Compulsory?:** No, but supply and installation contracts often require it - **Insured:** the installed object, optionally erection equipment and existing plant - **Period:** from unloading on site until acceptance, test runs included - **Policy types:** single project or annual policy for all installations - **Policyholder:** manufacturer, installer or the customer ## Erection all risks versus contractors all risks German insurers draw the line by what is being built. Contractors all risks (Bauleistungsversicherung) covers structures such as foundations, buildings and roads. Erection all risks covers machinery, mechanical equipment, steelwork and technical plant that is assembled, connected and commissioned. Large industrial sites often carry both policies side by side. The overlap zones are machine foundations and building services. Agree in writing before work starts which items fall under which policy, otherwise each insurer may point at the other after a loss. ## Commissioning is where the big losses happen Lifting accidents are visible, but the expensive claims tend to come at first start-up: a swapped phase, a forgotten bolt in a gearbox, overpressure in a line. Test runs are normally included, but only for an agreed period. If commissioning drags on, for example because the customer asks for changes, extend the cover before it expires. Cover ends when the test run is completed, at acceptance or when the plant is declared ready for operation, whichever comes first. From then on the plant is the operator's risk under their machinery breakdown or electronic equipment policy. Make sure the handover date is documented. ## Extensions worth asking for Beyond the installed object you can usually add your own erection equipment such as scaffolding, hoists and tool containers, the customer's existing plant you connect to, debris removal and salvage costs, and express or air freight for spare parts. Each extension needs its own sum insured. Existing plant is the one most often missed. Tie a new control system into a running line, damage the line, and without this extension neither the erection policy nor liability cover will reliably pay. ## Annual policy for regular installers Firms that install only occasionally insure each project separately. Companies with a steady flow of jobs are usually better served by an annual policy that covers every installation up to a limit per object, with the premium based on declared installation turnover. No job then starts uninsured because a declaration was forgotten. ## What is covered - Sudden and unforeseen damage to the installed object until acceptance - Clumsiness, negligence and operating errors by fitters - Damage during lifting, setting down and alignment - Short circuit, overvoltage and the effects of erection errors during test runs - Fire, lightning, explosion, storm and, depending on the policy, flood - Theft of installed parts and vandalism - Erection equipment and existing plant, if included - Debris removal, salvage and express freight as agreed ## What is not covered - The defective part itself after a design, material or casting fault, usually only the resulting damage - Damage after acceptance or the start of regular operation - Third party liability for property damage or injury - Contract penalties, delay and loss of profit - Wear and tear, rust and gradual deterioration - The agreed deductible ## Who needs it - Machine and plant builders who install and commission at the customer's site - Installation contractors and self-employed fitters - Steel construction, conveyor and crane companies - Manufacturers of energy, ventilation and process plant - Foreign firms installing in Germany under a German works contract ## Who does not need it - Companies that only deliver and leave installation to the customer - Pure maintenance and service providers ## What it costs The premium depends mainly on the erection value, meaning the replacement value of the object including installation costs, and on the time until acceptance. Annual policies are rated on declared installation turnover, usually with a minimum premium. We have no reliable, independently published example premiums for this class in Germany, so we do not quote figures. **What drives the premium:** - Erection value and value of the heaviest single item - Type of plant and share of electrical and control equipment - Duration of installation and test runs - Site, country and exposure to flood or theft - Included erection equipment and existing plant - Claims history and deductible _The insurer prices the risk only after reviewing the project description, installation schedule and site._ ## The policy levels on the market - **Single project policy:** One installation from unloading to acceptance with a fixed test run period. Suits firms with occasional large jobs. - **Annual policy:** All installations in a year up to a limit per object, premium based on turnover, options for erection equipment and existing plant. - **Major project cover:** For power, chemical or industrial plant with high values: individually underwritten, often covering all parties and the maintenance period. ## How to recognise a good policy | Criterion | Minimum standard | Strong policy | Why it matters | | --- | --- | --- | --- | | Test run period | short and fixed | generous and extendable on request | Commissioning almost always takes longer than planned. | | Consequences of faults | external causes only | resulting damage from design and erection faults covered | Most losses start with a mistake on your own side. | | Existing plant | not covered | included with its own sum insured | Connecting to a running line puts the largest values at risk. | | Erection equipment | excluded | scaffolding, hoists and tools included | Your equipment sits on someone else's site for weeks. | | Natural perils | storm only | flood and heavy rain included | Open halls and pits fill up quickly. | | Territorial scope | Germany only | worldwide or all countries you need | Plant engineering is an export business. | | Maintenance period | not covered | erection faults that show after handover covered as an option | A fault made during installation can cause damage months later. | ## Insurers on the German market In Germany erection all risks is written mainly by property insurers with engineering departments and, for large plant, by industrial insurers. Acceptance depends on the plant, the values and the country. This is a market overview, not a statement about who we work with. - **Allianz**: property and casualty company of the Allianz group, based in Munich - **HDI Global**: industrial insurer of the Talanx group for larger corporate clients - **Mannheimer**: property insurer based in Mannheim with its own erection insurance terms - **Zurich**: European company of the Zurich group, based in Frankfurt - **R+V**: insurer of the German cooperative banks, based in Wiesbaden - **VHV**: broker focused insurer from Hanover with a construction and trades focus - **Helvetia**: German company of the Swiss Helvetia group 155 insurers supervised by BaFin, the German regulator, are licensed for this class of insurance. (Hagel-, Frost- und sonstige Sachschäden). Source: BaFin company database, 2026-09-18; EU insurers without a German office excluded. ## Typical claims and who pays - **Component slips off the crane** (new part, freight and reinstallation): The textbook erection loss. Damage to the installed object is paid, less the deductible. - **Short circuit on first start-up** (control cabinet, motors, wiring): Covered while the agreed test run period lasts. Weak policies keep it short. - **Copper cable stolen overnight** (material and labour to reinstall): Installed parts are usually covered, loose material in storage only with a specific extension. - **Customer's existing line damaged** (repair of the existing plant): Existing plant is not part of the installed object. It is covered only when expressly included. - **Erection fault shows after handover** (resulting damage to the plant): Cover ends at acceptance. Some policies offer limited maintenance period cover. - **Customer claims a delay penalty** (contract penalty for late handover): Penalties and delay losses are not physical damage. No erection policy pays them. ## Myth or truth - „Liability insurance pays for damage to my own installation before handover." ✘ No. Liability cover pays for damage to other people's property. Your own work before acceptance is almost always excluded, which is exactly what erection all risks is for. - „Test runs are covered for as long as they take." ✘ No. Test runs are usually covered for an agreed period, and the cover must be extended in time if commissioning is delayed. - „The customer can take out the erection policy instead of the supplier." ✔ Yes. On large projects the customer often insures the whole project and all parties under one policy. The supply contract should say who insures. - „After a material defect, the faulty part itself is usually not replaced." ✔ True for most policies. The damage the defect causes to other parts is covered, while replacing the faulty part is the supplier's warranty obligation. - „A contractors all risks policy also covers machinery installation." ✘ Usually not. Contractors all risks covers structures. Machinery and technical plant including test runs belong under erection all risks. ## Common mistakes - Relying on liability insurance, which does not cover your own work - Extending commissioning without telling the insurer - Leaving out the customer's existing plant you connect to - Insuring transport and erection separately and leaving a gap at unloading - Choosing limits per object in an annual policy that are too low ## FAQ ### What is the difference between erection all risks and contractors all risks? Contractors all risks covers structures, erection all risks covers machinery, steelwork and technical plant including test runs. What matters is what is being built, not where. Mixed sites often need both with a clear dividing line. ### When does cover start and end? Usually from unloading on site until acceptance or the start of regular operation. Transport to the site needs cargo cover, operation afterwards needs the operator's machinery policy. ### Are test runs always included? Usually, but only for an agreed period. If commissioning takes longer, extend the cover before it lapses. Check this period in every quote. ### Does the policy pay if a design fault causes the loss? It usually pays for the damage the fault causes to other parts, not for replacing the faulty part itself. That remains a warranty matter for the supplier. ### Who should buy the policy, the supplier or the customer? The contract decides. Usually whoever carries the risk until acceptance insures, typically the manufacturer or installer. On large projects the customer often insures all parties under one policy. ### We are a foreign company installing in Germany. Can we insure locally? Yes. A German policy can cover your installation in Germany, and some customers prefer a German insurer. Alternatively your home policy may extend to Germany; we compare both routes. ### Are our tools and lifting gear covered? Only if erection equipment is included as an extension. Otherwise they need separate equipment or machinery cover. ### Why use a broker? Because insurers treat test runs, existing plant, consequential damage and foreign sites very differently, and acceptance depends on the project. We collect quotes, compare wording and align the boundary with contractors all risks and cargo cover. The insurer pays our commission. ## Legal basis and sources - [Insurance Contract Act (VVG, German)](https://www.gesetze-im-internet.de/vvg_2008/) - [BaFin company database (licensed insurers)](https://portal.mvp.bafin.de/database/InstInfo/) ## Request quotes We obtain quotes and come back with a comparison, free of charge. You can write in English. https://www.nammert.com/en/insurance-broker-erection-all-risks.php#anfrage --- Your broker: Norman Nammert, trading as NAMMERT. Insurance broker licensed under section 34d(1) of the German Trade Regulation Act. Broker register no. D-C08Q-TOSD4-37. NAMMERT Assekuradeur GmbH is a separate company. It does not arrange your contract. NAMMERT Assekuradeur GmbH, Karl-Marx-Straße 4, 15711 Königs Wusterhausen, +49 3375 29 12 77, info@nammert.com. Wikidata: Q141141479.