Engineering All Risk Insurance (EAR) Services
Engineering All Risk (EAR) Insurance, also known as Construction All Risk (CAR) Insurance in some regions, is a specialized insurance policy designed to provide comprehensive coverage for engineering and construction projects. This type of insurance is particularly relevant to contractors, construction companies, and project owners involved in various engineering and construction activities. Here are the key aspects and features of Engineering All Risk Insurance:
Coverage: EAR Insurance is designed to cover a wide range of risks and perils that can affect engineering and construction projects. It typically includes coverage for damage to the construction site, materials, equipment, machinery, and the completed structure. Common covered perils include fire, theft, vandalism, natural disasters (e.g., earthquakes, floods), accidents, and more.
Construction Phase: EAR policies provide coverage during the construction phase of a project, from the commencement of work until the project is completed. The coverage may also extend to certain post-construction phases, such as testing, commissioning, and initial operation.
Property Damage: The insurance covers physical damage or loss to the insured property, which can encompass the building under construction, construction materials, tools, equipment, and machinery. This coverage applies to damage caused by covered perils or accidents.
Third-Party Liability: EAR policies often include third-party liability coverage, protecting the policyholder against claims for bodily injury or property damage brought by third parties, such as neighboring property owners or pedestrians, resulting from construction activities.
Delay in Start-Up (DSU): This extension of coverage compensates the insured for financial losses incurred due to delays in the project’s completion. It covers additional expenses and lost revenue that may result from construction delays.
Contract Works: The policy may provide coverage for damage or loss to the contract works, which includes the construction project itself. This is a fundamental aspect of EAR insurance as it protects the financial investment in the project.
Extensions: EAR policies can often be customized with various extensions or add-ons to meet the specific needs of a construction project. These may include coverage for professional fees, damage to temporary works, and more.
Exclusions: Like all insurance policies, EAR policies have exclusions, which specify situations or risks that are not covered. Common exclusions may include wear and tear, design defects, and acts of war.
Deductibles: Policyholders may need to pay a deductible (an initial amount) before the insurance coverage comes into effect. The deductible amount can vary depending on the policy and the nature of the project.
Premiums: The cost of EAR insurance, known as the premium, is determined by factors such as the size and complexity of the project, location, duration, and the coverage limits chosen.
Engineering All Risk Insurance is a crucial component of risk management for construction and engineering projects. It helps protect project stakeholders from unexpected events and financial losses that could otherwise jeopardize the successful completion of the project. Contractors, construction companies, and project owners should carefully review and select EAR insurance policies that align with the specific risks associated with their projects.
