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🏗️ '''Erection all risks (EAR)''' is a specialized [[Definition:Engineering insurance | engineering insurance]] policy designed to cover the installation, assembly, and erection of machinery, plant, equipment, and steel or prefabricated structures at a project site. It belongs to the broader family of [[Definition:Construction insurance | construction insurance]] products but is distinguished from [[Definition:Contractors' all risks (CAR) | contractors' all risks (CAR)]] insurance by its focus on mechanical and electrical erection activities rather than civil works. EAR coverage is standard for projects such as power plant installations, industrial processing facilities, telecommunications towers, wind turbines, and large-scale manufacturing equipment assembly — essentially any project where the primary risk involves the erection and testing of machinery rather than ground-up building construction.

🔧 An EAR policy typically provides [[Definition:All risks | all-risks]] coverage for physical loss or damage to the contract works, construction plant, and equipment during the erection period, including testing and commissioning phases. Most policies also include a [[Definition:Maintenance period | maintenance or defects liability period]] — commonly twelve months — following handover, during which the insurer covers damage arising from defects originating during the erection phase. The coverage is structured in sections: Section I covers the works themselves (materials, equipment, and labor costs for reinstatement), while Section II provides [[Definition:Third-party liability insurance | third-party liability]] protection for bodily injury or property damage claims arising from the erection activities. [[Definition:Delay in start-up (DSU) insurance | Delay in start-up (DSU)]] coverage, sometimes called advance loss of profits, can be added as a Section III extension to protect the project owner against financial losses caused by delayed commissioning due to an insured physical damage event. Policies are typically placed through specialist [[Definition:Insurance broker | brokers]] in markets such as [[Definition:Lloyd's of London | Lloyd's]] and the large European engineering insurers, with [[Definition:Munich Re | Munich Re]] and [[Definition:Swiss Re | Swiss Re]] among the major [[Definition:Reinsurance | reinsurers]] active in this space.

📌 For project owners, contractors, and lenders, EAR coverage is often a contractual prerequisite before erection work can commence, since the concentration of high-value equipment at a single site creates significant exposure to losses from fire, collapse, weather events, faulty workmanship, or testing accidents. Engineering [[Definition:Underwriting | underwriters]] assess risks based on the nature of the machinery, the erection methodology, the experience of the contractor, site conditions, and the project timeline. In markets across the Middle East and Southeast Asia, where large-scale infrastructure and energy projects are commonplace, EAR placements represent a substantial segment of the [[Definition:Engineering insurance | engineering insurance]] market. The Munich Re and Swiss Re engineering reinsurance wordings have historically set benchmarks for EAR policy conditions internationally, though local regulatory requirements — such as compulsory third-party liability minimums — vary by jurisdiction and must be layered into the program design.

'''Related concepts:'''
{{Div col|colwidth=20em}}
* [[Definition:Contractors' all risks (CAR)]]
* [[Definition:Engineering insurance]]
* [[Definition:Delay in start-up (DSU) insurance]]
* [[Definition:Construction insurance]]
* [[Definition:Third-party liability insurance]]
* [[Definition:All risks]]
{{Div col end}}

Definition:Erection all risks (EAR) - Revision history

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