Erection All Risks (EAR) Insurance

The risk to a machine or technical system does not begin once it starts operating, but from the moment it arrives on site.

Materials standing on site, being positioned, assembled, connected, tested and commissioned each carry different technical risks.

Erection All Risks (EAR) Insurance provides for sudden and unforeseen physical loss or damage occurring during the erection period to the machinery, plant and technical systems described in the policy to be assessed within the framework of the policy terms.

Which projects can be covered?

The following projects, for example, may form the subject of an EAR policy:

• Manufacturing facilities
• Industrial machinery
• Power systems
• Mechanical installations
• Electrical systems
• Production lines
• Technical plant
• Large-scale equipment erection works

Which risks can arise during erection?

During erection, the following circumstances may be assessed according to the scope and terms of the policy:

• Falling components
• Impact
• Physical damage resulting from incorrect connection
• Fire
• Natural perils
• Accidents occurring during erection
• Certain damage arising at the testing and commissioning stage

Additional covers

Depending on the nature of the project, the following may be included in the policy:

• Third party liability
• Debris removal
• Express freight
• Overtime costs
• Strike, riot and civil commotion
• Additional cover relating to the testing or maintenance period

How it differs from Contractors All Risks (CAR)

Contractors All Risks (CAR) is principally concerned with the construction work itself, whereas Erection All Risks centres on the erection process for machinery and technical systems.

On some projects, construction and erection activities are closely intertwined. In such cases, the principal character of the project and the technical stage at which the risk sits are assessed together.

Under Erection All Risks Insurance, the essential question is not only which machine is being erected, but the conditions under which the erection is carried out.