Erection All Risk (EAR)
EAR policies are designed to cover the risk of loss arising out of the erection and installation of machinery, plant and steel structures, including physical damage to the contract works, equipment and machinery, and liability for third-party bodily injury (BI) or property damage (PD) arising out of these operations
- Covered parties include the general contractors, subcontractors, and in some cases suppliers and manufacturers of equipment.
- Examples of the types of projects for which EAR coverage is typically purchased include power plants, manufacturing and fabrication facilities, water and wastewater treatment facilities, and telecommunications centers (particularly where the erection of signal towers is involved).
- Covers erection, installation and commissioning of plant and machinery.
- Covers associated building work included in the policy (e.g. construction of a plant room or laying of foundations).
- The policy can be extended to cover periods of commissioning post installation
- Cover can be extended to include temporary custody of machines during repair or maintenance