While working on colossal construction projects, contractors are usually prone to damage or loss of machinery and equipment. Whether they deploy their own equipment or hire one at the construction site, such downfall can head towards time and cost ineffectiveness. That’s where the significance of ‘plant and equipment insurance’ enters into play. Offered by general insurance companies, the policy covers the potential losses and ensures the continued flow of the project without any loopholes.
Thus, to the contractors and merchants who wish for the timely completion of the project by eliminating the possible risk in context to plant and equipment, here is everything one should know.
Features Of The Plant and Equipment Insurance Policy
Plant and Equipment insurance policy is specially designed to protect the heavy tools and machinery at the construction sites against damage, theft, or breakdown. This includes rollers, earth-moving machinery, drilling machines, excavators, and others. Below-mentioned is the salient features of the insurance policy that makes it need of the situation.
- Customers are provided with the option to select only particular machinery for insurance coverage.
- SA (Sum Insured) in Plant and Equipment Insurance implies the value of replacement of the damaged item with new.
- Only the same quality and quantity of items are eligible for replacement.
- Procurement costs (freight chargers and custom charges) are involved during the replacement.
What Does It Cover?
Contractor’s Plant and Equipment Insurance policy covers the loss or damage done to plants and equipment in the project due to the following events –
- Fire
- Theft or burglary
- Earthquake
- Storm, cyclone, flood
- Accidental damage
- Terrorism
Additional Coverage
Various additional coverage under the policy include –
- Clearance and removal of debris
- Escalation
- Third-party liability
- Airfreight and express freight
- Additional custom duty
- Damage to owner’s surrounding property
What Is Not Covered?
The contractor’s plant and equipment insurance policy does not cover loss due to electrical or mechanical breakdown, war, nuclear perils, the explosion of boiler or pressure vessels, consequential losses, and when vehicles are licensed for the general road. Besides, in case of transit risk from site to site, separate marine insurance is required.
These were the basics that individuals (owners, contractors, users of machinery, and financial institutions as investors) entailed knowing about plant and equipment insurance. We suggest you experience the benefits of an insurance policy by getting in touch with a specialist insurance broker.
Stay safe!
ashish