Civil Engineering Completed Risk – Protection After Handover

CECR Insurance Batam

Civil Engineering Completed Risk (CECR) covers revetments, jetties, roads and other civil structures once construction ends, at the point where responsibility for the risk passes from the contractor to the asset owner or operator.

Rio Mardiansyah
Reviewed by
Rio Mardiansyah
Insurance Practitioner · 8+ Years Experience

Benefits & Coverage

What does this insurance policy cover?

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Design-Risk Damage

Structural failure arising from weaknesses in civil design parameters, including load calculations and slope or revetment stability.

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Erosion & Scouring

Undermining of the base or edge of a structure by currents, waves and tides that weaken the foundation of a revetment or jetty.

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Vessel & Equipment Impact

Physical damage from collision with vessels berthing nearby, cargo-handling equipment or operational vehicles.

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Natural Perils & Extreme Weather

Damage from flood, strong wind and extreme weather. Earthquake is available as an additional cover, subject to the insurer's wording.

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Fire & Lightning

A relatively small exposure for civil structures, but this basic cover is still part of the CECR policy.

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Day-to-Day Operational Risk

Losses arising from routine use of the structure after handover (BAST), outside the contractor's maintenance responsibility.

Where CECR Sits in the Project Lifecycle

Many project owners assume insurance ends automatically once the handover certificate (BAST) is signed. In fact, that is exactly when the type of risk changes. During construction, a revetment, jetty or access road is protected by Contractor All Risk (CAR). After handover, the exposure is no longer construction work but operation: erosion at the foundation, ground movement, vessel impact, or design faults that only show up once the structure is in use.

As a practitioner handling infrastructure projects in Batam, I usually advise running CAR and CECR back-to-back, so that not a single day passes with the asset unprotected, a gap many contractors and owners overlook.

Why It Matters for Batu Ampar and Port Areas

Batu Ampar is Batam's main export-import gateway and has been going through large-scale port works, from strengthening jetties to expanding container yards. Revetments here face a distinctive exposure: waves from passing vessels, tidal movement, static loads from cargo equipment, and ground movement in reclaimed areas. A completed revetment does not mean the risk is over; it moves towards long-term operational risks such as scouring, displaced stone blocks and cracking from repeated loads.

Rio, a general insurance practitioner in Batam, carrying out a site survey for CECR insurance on a revetment project in the Batu Ampar area

A site survey is a step that cannot be skipped before a CECR policy is issued: stone facing, slope angle, packing density and the points most exposed to scouring are all checked on site.

Note: CECR rates are set by the underwriter after a survey and are not fixed by a standard tariff. Standard exclusions, such as normal wear and tear, apply, and the cover follows the wording of the policy issued by each insurer.

Related Project Cover

Contractor All Risk (CAR)

Covers the construction period, up to the handover certificate (BAST).

Erection All Risk (EAR)

Relevant when the project involves installing cranes, machinery or plant.

Maintenance Bond

The contractor's guarantee during the maintenance period, a different instrument from CECR.

Frequently Asked Questions

Answers to commonly asked questions

What is CECR insurance and when does it start?+
CECR (Civil Engineering Completed Risk) covers completed civil engineering works — jetties, revetments, roads, bridges and drainage channels — after construction ends and the handover certificate (BAST) has been issued. Once the BAST is signed, the risk shifts from a 'project risk' covered by CAR/EAR to an 'operational risk', and that is where a CECR policy takes over.
What is the difference between CECR and Contractor's All Risk (CAR)?+
CAR covers the construction period, while equipment, materials and workers are still on site. CECR covers the structure once it is complete and in use. For a revetment or jetty we usually recommend running CAR until the BAST and continuing straight into CECR, so there is no gap of cover.
Are CECR premium rates fixed by the regulator?+
Not in the way property all risks rates are. CECR does not follow a standard tariff, so the underwriter sets the rate based on the project's risk profile, including the contractor's reputation, claims history and site conditions found during the survey.
What risks does a CECR policy cover for a revetment?+
Typically physical damage from design-related structural risk and operational risk, such as slope failure or collapse of the stone facing due to erosion or scouring, ground movement, impact from vessels or heavy equipment, and extreme weather. Standard exclusions still apply, for example normal wear and tear and maintenance that is continuously neglected.
How is the premium calculated for a project in Batam?+
The premium is based on the total sum insured, the type and location of the structure, its age, the field survey result and the last 3–5 years of claims history. Port-area projects such as Batu Ampar usually carry extra exposure from cargo handling and vessel traffic, which underwriters take into account.
Does the site survey decide whether a CECR application is accepted?+
The survey is a key step. The underwriter assesses the design parameters against natural hazards, the maintenance condition and the actual use of the structure. A well-documented survey, with photos of the stone facing, slope angle and weak points, speeds up acceptance and helps set a more accurate rate.

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