Contractor’s All Risks / Erection All Risk Insurance
Contract works for roads, bridges, installation of plant and machinery are insured under a CAR or EAR Policy. By this Policy, damage by fire, storm, windstorm etc. to the construction works is made good by the insurance proceeds. Losses occurring during the maintenance periods are also covered until the project is handed over to the principals.
The EAR policy offers comprehensive and adequate protection against all the risks involved in the erection of machinery, plant and steel structures of any kind, as well as third-party claims in respect of property damage or bodily injury arising in connection with the execution of an erection project.
The insured under an EAR policy is normally:
- The manufacturer or supplier of machinery or plant if he carries out the erection work or is responsible for it, or
- The firm commissioned with erection work, or
- The purchaser of the machinery or plant to be erected
Under the EAR policy every hazard is covered which is not specifically excluded. This means that almost any unforeseen and sudden physical loss or damage occurring to the property insured on the erection site during the period of insurance will be indemnified.
The cover commences directly after the unloading of the items to be insured at the site and continues until the erection work and testing operations have been completed.