Written in connection with construction projects outside the
United States, 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.
Coverage for delay in start-up (DSU) costs is typically an optional
coverage. Covered parties include the general contractor, 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).
Some insurers combine EAR and contractors all risks (CAR) coverages
into one form. Although these terms are sometimes used interchangeably,
there are some substantive differences.
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