Erection All Risks (EAR) Insurance — 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.