The contractor’s plant and equipment insurance cover damages of any accidental fire, overturning the vehicle, or any malicious damage. In addition, the insurance usually covers any damage arising due to an external force of an accidental nature.
So here we are, telling why you should consider taking plant and equipment insurance if you haven’t taken one yet!
When Chad arrived at work only to find out that his excavator was no longer there, he did not panic. Instead, he composed himself and called the police to report the theft.
Since the excavator was less than a year old, he claimed the machine’s agreed value and hired a similar machine from the claim compensation received by the insurer and therefore continued working without looking for any income.
This was just one example where mobile plant and equipment insurance has helped somebody to continue working despite incurring loss due to external factors:
- The policy covers loss or damage caused to civil contractors.
- Premium depends upon factors like the type of equipment, use of the equipment. So you will never have to pay for something you don’t need.
- Coverage is offered for damages during the maintenance period.
- The policy provides coverage for a construction site.
- This policy covers plant and machinery for any physical damage.
- The insurance coverage is applicable even while overhauling or re-erecting the equipment.
- The downtime of the machine is reduced so that the operational efficiency improves.
- The mobile machinery is covered during idle as well as running conditions.
- Plant and equipment are a big part of the contractor’s investment. Therefore, any such accidents can severely damage the business.
- Usually, small and medium companies are highly affected by such losses. When the fleets are limited in number, it’s not easy to replace the defective plants and machinery.
- The Construction equipment insurance settles fast claims at reasonable prices.
- The large contractors also prefer to take the insurance with a fixed premium. It helps to avoid staking the company’s profit, and they can only set so much in reserves as they need for other purposes.
Coverage under Plant and Equipment Policy:
- Material Damage to Plant and Equipment
- Non Aggregation of Access
- Suitable hire for your equipment
- Hired in plant and equipment
- Unspecified attachments
- Portable tools and spares
The following insurable pieces of equipment are covered under the Contractor’s Plant and Equipment Insurance:
- Equipment on-site, such as plant and machinery equipment, inclusive of:
- Earthmoving equipment
- Drilling machines
Perils included in the insurance cover clause:
- Vehicles overturning
- Vehicles slipping into ravines or excavations
- Fire at the place of vehicle parking
- Any other loss, not specifically excluded.
Perils generally excluded from the insurance cover clause:
- Willful acts committed by the insured
- Contamination as a result of a nuclear accident
- War or warlike events
Perils specifically excluded from the insurance cover clause:
- Machine breakdown without any apparent external force.
- Damage to the gears, motors as well as stress fractures.
Factors affecting insurance premium:
- Purpose of using the equipment
- How often the plant is put into use
- The location where the machinery would be used
- Risks and dangers associated with operating the machinery
- The model and year of manufacture of the equipment
- Type of the equipment and type of the project it is put into use
The plant and equipment are the bread and butter for the contractors, especially if the major chunk of the business relies on them. So it’s very necessary to safeguard them from any unforeseen liability and keep the business running smoothly.
By taking a good and efficient insurance cover policy, the construction equipment insurance can cover the majority of the risk exposures and safeguard the business from any perils that can hamper your business and the livelihood of several others associated with you.