Machinery & Plant Installation – Mobilisation to Commissioning
Erection All Risk (EAR) Insurance Batam
All risk protection for machinery installation, industrial plant, and equipment erection projects — from mobilisation through commissioning and the maintenance period. Batam's industrial zone demands specialist coverage.
Benefits & Coverage
What does this insurance policy cover?
Damage During Erection
Physical loss or damage to machinery, equipment, and structural components during the erection process.
Design Error or Defective Material
Damage resulting from faulty design, defective material, or poor workmanship discovered during erection.
Damage During Testing
Losses arising from testing, commissioning, and start-up of machinery and plant.
Natural Disasters & Weather
Flood, storm, earthquake, and other natural perils affecting the site during erection.
Fire & Explosion
Losses from fire, explosion, and short-circuit during the erection phase.
Third Party Liability
Legal liability for bodily injury or property damage to third parties arising from erection operations.
Testing & Commissioning Period
Extended coverage during the testing and commissioning phase — the highest-risk period for new plant.
Dismantling & Re-shipping Costs
Costs of dismantling damaged components and re-shipping replacement parts to site.
How Much Does EAR Insurance Cost in Batam?
EAR premiums are calculated from the erection contract value. Below is an estimation guide for machinery installation and plant projects in Batam and the Riau Islands industrial estates.
| Project Type | Contract Value | Estimated EAR Premium | Notes |
|---|---|---|---|
| Factory machinery installation (small) | Rp 1 – 5 billion | Rp 5 – 50 million | Light production machinery, HVAC, generator sets |
| Industrial plant installation | Rp 5 – 50 billion | Rp 50 – 500 million | Processing plants, chemical plants, energy facilities |
| Large infrastructure projects | Rp 50 billion and above | Special negotiation | Power plants, offshore, telecom towers, jetties |
* EAR premiums generally range from 0.5% to 2.0% of the contract value, depending on erection complexity, testing & commissioning risk, and project duration. Free consultation for a specific quote.
EAR Case Studies in Batam
Realistic illustrations of how EAR responds on installation projects.
⚡ Damage During Testing: Processing Plant in Muka Kuning
A processing plant in the Muka Kuning industrial estate suffered severe damage to its main compressor system during first-time commissioning. Excess pressure from an uncalibrated valve caused a pipe to burst.
Losses:
Compressor & pipe damage: Rp 3.2 billion | Imported spare parts shipping: Rp 450 million
✅ The testing & commissioning claim was fully covered because the T&C clause was active.
🏗️ Crane Failure During Telecom Tower Erection
A crane sling snapped while lifting the top segment of a telecom tower in Nongsa. The segment fell and damaged components already installed below, as well as a technician's vehicle in the erection area.
Losses:
Tower components damaged: Rp 1.8 billion | Vehicle (TPL): Rp 120 million | Re-erection costs: Rp 280 million
✅ EAR with the TPL extension covered the entire claim, including the third-party vehicle.
Related Products for Installation Projects
Contractor All Risk (CAR)
For building and civil projects outside machinery installation or plant erection.
CECR (Civil Engineering Completed Risks)
For civil infrastructure such as retaining walls, jetties, and roads.
Heavy Equipment Insurance
Protect the cranes and heavy equipment used during the erection process.
Policy Comparison
Choose the package that suits your needs
| Feature | Basic | Standard | Comprehensive |
|---|---|---|---|
| Damage During Erection | ✅ | ✅ | ✅ |
| Defective Material/Design | ❌ | Optional | ✅ |
| Testing & Commissioning | ❌ | ✅ | ✅ |
| Third-Party Liability | Limited | ✅ | ✅ |
| Natural Disasters | ❌ | Optional | ✅ |
| Dismantling & Re-shipping | ❌ | ❌ | ✅ |
* Contact us for the best offer tailored to your needs
Frequently Asked Questions
Answers to commonly asked questions
What is the difference between EAR and CAR Insurance?+
What types of projects require EAR?+
Does EAR cover initial testing (testing & commissioning)?+
How much is an EAR Insurance premium?+
Ready to apply? Fill in a short form and we'll do the initial assessment.