EAR v Project Cargo Policy - The Timing Of Damage

European Group Ltd & Ors v Chartis Insurance UK Ltd [2012]¹Commercial Court, 11 May 2012

The Claimants in this case were insurers under an Erection All Risks (EAR) policy, issued in connection with a project for the installation of economiser blocks to a UK waste recycling plant. The Defendants were the marine project cargo insurers in relation to the same equipment, which had been produced by a manufacturer in Romania and was required to be brought to the site by road to Constanta and from there by ship to Southampton.

Both policies also covered delay in start up caused by damage to the property covered by the respective policy. Each policy also incorporated a "50/50 clause", providing that, in the event it was not possible to ascertain whether the damage occurred before or after the arrival of the equipment at the facility, the two policies would each contribute 50% to the adjusted claim.