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🏗️ '''Erection all-risk insurance (EAR)''' is a specialized [[Definition:Engineering insurance | engineering insurance]] product designed to cover losses arising during the installation, erection, and testing of machinery, plant, and steel structures at construction and industrial sites. While its counterpart, [[Definition:Contractors' all-risk insurance (CAR) | contractors' all-risk (CAR) insurance]], focuses on civil engineering and building construction, EAR is tailored to projects dominated by mechanical and electrical erection work — power plants, refineries, manufacturing facilities, wind farms, and telecommunications infrastructure. The coverage typically operates on an [[Definition:All-risk insurance | all-risk]] basis, meaning it protects against all causes of physical loss or damage unless specifically excluded.

⚙️ An EAR policy generally comprises multiple sections. Section I covers material damage to the works under erection, including equipment and materials stored on-site. Section II provides [[Definition:Third-party liability insurance | third-party liability]] cover for bodily injury and property damage arising from the erection activities. Many policies also include extensions for surrounding property, existing structures, and the [[Definition:Principal | principal's]] own plant. The policy incepts when materials arrive at the project site and typically runs through mechanical completion and a testing or commissioning period, after which the asset transitions to a permanent operational [[Definition:Property insurance | property]] or [[Definition:Machinery breakdown insurance | machinery breakdown]] policy. [[Definition:Underwriting | Underwriting]] EAR risks demands specialized engineering expertise — insurers assess factors such as the type of machinery being erected, the experience of the contractor, site conditions, seismic exposure, and the adequacy of project management. [[Definition:Munich Re | Munich Re]], [[Definition:Swiss Re | Swiss Re]], and a number of [[Definition:Lloyd's syndicate | Lloyd's syndicates]] are prominent participants in this market globally, with significant portfolios in Asia, the Middle East, and emerging markets where infrastructure investment drives demand.

💡 The distinction between EAR and CAR matters in practice because the risk profile of mechanical and electrical erection differs fundamentally from civil construction. Erection projects involve expensive, precision-engineered components where a single assembly error or transit damage incident can produce a loss disproportionate to the overall project value. [[Definition:Defects liability period | Defects liability]] and maintenance extensions are common, covering the insured for a specified period after completion during which latent erection faults may manifest. For large-scale energy and industrial projects, EAR coverage is frequently placed alongside [[Definition:Delay in start-up insurance (DSU) | delay in start-up (DSU)]] insurance, which compensates the project owner for [[Definition:Loss of revenue | revenue losses]] if erection delays push back the commercial operation date. Across markets, the EAR product remains a cornerstone of [[Definition:Engineering insurance | engineering insurance]], and its terms are often based on the Munich Re model wording that has served as the de facto global standard for decades.

'''Related concepts:'''
{{Div col|colwidth=20em}}
* [[Definition:Contractors' all-risk insurance (CAR)]]
* [[Definition:Engineering insurance]]
* [[Definition:Delay in start-up insurance (DSU)]]
* [[Definition:Machinery breakdown insurance]]
* [[Definition:All-risk insurance]]
* [[Definition:Project insurance]]
{{Div col end}}

Definition:Erection all-risk insurance (EAR) - Revision history

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