Erection All Risks (EAR) Insurance is one of the well-known construction all risks policy that gives the comprehensive protection in erection structures work from any accidental damage or unforeseen loss, as long as not excluded at policy exclusions. Generally, this policy will cover the property within erection work from such perils below :

§ fire, lightning, explosion, falling aircraft.

§ flood, inudation, earthquake, tsunami, landslide, and other type of Act of God.

§ theft and or burglary.

§ lack of skill or knowledge.

As mention above, this policy will cover any accidental damage or unforessen loss, subject to exlusions written in the policy schedule or wording. Basically, the exclusions in the EAR policy will consist of 2 (two) section, namely General Exclusions and Special Exclusions.

At the beginning of policy wording, we will usually meet the General Exclusions where the Insurers will not indemnify the insured in respect of loss, damage or liability directly or indirectly caused by :

§ war, invasion, act of foreign enemy, riot, strike, lock-out, civil commotion, etc.

§ nuclear reaction, nuclear radiation or radioactive contamination.

§ willful act or willful negligence of the insured or of his representatives.

§ cessation of work whether total or partial.

Meanwhile, the Special Exclusions in the EAR policy will be divided into 2 (two) section, namely Special Exclusions to Material Damage and Special Exclusions to Third Party Liabilty. For material damage section, the Insurers shall not be liable for :

a. the deductible stated in the policy schedule.

b. consequential loss, losses due to delay, lack of performance, loss of contract;

c. loss or damage due to faulty design, defective material or casting, bad workmanship other than faults in erection.

d. wear and tear, corrosion, oxidation.

e. loss of or damage to files, drawings, accounts, bills, currency, stamps, etc.

In relation with Third Party Liability Exclusion Section, the Insurers will not indemnify the Insured in respect of :

1. the deductible stated in the policy schedule.

2. liability consequent upon :

a. bodily injury of workmen of the Contractor(s) or the Principal(s) connected with the project.

b. loss of or damage to property belonging to the Contractor(s), the Principal(s) or any other firm connected with the project.

c. any accident caused by vehicles licensed for general road use or by waterborne vessels or aircraft.

So, as an conclusion, for the project owners, contractor or related parties who concern in civil engineering project, it will be useful to know how wide the insurance coverage offered by insurance company before take decision to buy an engineering insurance products such as EAR Insurance.