EAR Insurance Malaysia: Erection All Risks Coverage for Machinery Installation

Your RM15 million turbine arrives at site. Three months later, during commissioning, a calibration error causes catastrophic damage. Your standard fire insurance won't cover it. Your CAR policy doesn't apply to mechanical works. You're facing the full loss.

This guide explains how Erection All Risks (EAR) insurance protects Malaysian machinery installation projects from the moment equipment arrives at site through testing, commissioning, and the defects liability period.

This guide covers:

• What EAR insurance covers and how it differs from CAR
• Project types that require EAR coverage
• Coverage phases from storage through maintenance
• Section 1 (Material Damage) and Section 2 (Third Party Liability)
• Standard exclusions and available extensions
• Premium factors and typical costs
• Claims process and documentation requirements
• Common mistakes that void coverage

What Is Erection All Risks (EAR) Insurance?

Erection All Risks (EAR) insurance provides comprehensive protection for machinery, plant, and steel structure installation projects against physical loss or damage from sudden and unforeseen causes. The policy covers all risks except those specifically excluded, placing the burden of proof on the insurer to deny claims rather than on you to prove coverage.

EAR insurance operates during the critical phases when expensive equipment faces maximum exposure: transit to site, storage, erection, installation, testing, and commissioning. Coverage can extend into the maintenance period when contractors return to rectify defects.