https://www.insurerbrain.com/w/index.php?action=history&feed=atom&title=Definition%3AErection_all_risks_%28EAR%29_insurance 2026-05-04T15:34:15Z Revision history for this page on the wiki MediaWiki 1.43.8 https://www.insurerbrain.com/w/index.php?title=Definition:Erection_all_risks_(EAR)_insurance&diff=14524&oldid=prev 2026-03-14T16:03:46Z

<p>Bot: Creating new article from JSON</p> <p><b>New page</b></p><div>🏗️ &#039;&#039;&#039;Erection all risks (EAR) insurance&#039;&#039;&#039; is a specialized [[Definition:Engineering insurance | engineering insurance]] product designed to cover the installation, erection, and testing of machinery, plant, and steel structures against physical loss or damage arising from virtually any cause not specifically excluded. Unlike standard [[Definition:Property insurance | property insurance]], EAR policies are tailored for projects where the primary activity involves assembling, mounting, or commissioning equipment — such as power plants, refineries, telecommunications towers, industrial production lines, and large-scale mechanical installations. The coverage originated in the continental European engineering insurance tradition and is now written worldwide, with significant markets in Europe, the Middle East, and Asia.<br /> <br /> 🔧 An EAR policy typically attaches at the start of transit of equipment to the project site and remains in force through storage, erection, testing, and commissioning, often extending into a [[Definition:Defects liability period | defects liability period]] (also called a maintenance period) after handover. The core Section I covers material damage to the works, including equipment and materials, on an all-risks basis subject to named exclusions such as war, nuclear contamination, and wear and tear. Section II provides [[Definition:Third-party liability insurance | third-party liability]] coverage for bodily injury or property damage arising from the erection activities. Policies are commonly placed through [[Definition:Insurance broker | specialty brokers]] in [[Definition:London market | London]], Singapore, and Dubai, and may involve [[Definition:Reinsurance | reinsurance]] or [[Definition:Coinsurance | coinsurance]] arrangements when project values are substantial. Insurers assess risk based on the type of equipment, project location, contractor experience, erection methodology, and testing protocols.<br /> <br /> 💡 For contractors, project owners, and lenders, EAR insurance is an essential risk transfer mechanism that protects against the concentrated financial exposure inherent in complex installation projects. A single incident during commissioning — such as a turbine failure or a structural collapse during lifting — can cause losses running into tens or hundreds of millions of dollars, along with significant project delays covered under optional [[Definition:Delay in start-up (DSU) insurance | delay in start-up]] extensions. Financial institutions providing [[Definition:Project finance | project finance]] routinely require EAR cover as a condition of lending. The product is closely related to [[Definition:Contractors&#039; all risks (CAR) insurance | contractors&#039; all risks (CAR) insurance]], which covers civil construction works; on many large infrastructure projects, both CAR and EAR policies are placed together or combined into a single comprehensive project insurance program.<br /> <br /> &#039;&#039;&#039;Related concepts:&#039;&#039;&#039;<br /> {{Div col|colwidth=20em}}<br /> * [[Definition:Contractors&#039; all risks (CAR) insurance]]<br /> * [[Definition:Engineering insurance]]<br /> * [[Definition:Delay in start-up (DSU) insurance]]<br /> * [[Definition:Project insurance]]<br /> * [[Definition:Third-party liability insurance]]<br /> * [[Definition:Defects liability period]]<br /> {{Div col end}}</div>

PlumBot