Construction Equipment Insurance

Plant and Machinery Insurance is the foundation of any construction equipment program.

It covers your owned equipment against accidental damage, fire, storm, flood and theft, whether that’s an excavator damaged by a falling tree, a loader stolen from a site overnight or a generator destroyed by fire.

Policies are typically written on an agreed value or market value basis, and accurate valuation is critical, because underinsurance can see claims scaled back.

When you hire equipment from a third party, you are typically responsible for it while it is in your care, custody and control.

Hire agreements usually make you liable for the full replacement cost if it is damaged, stolen or destroyed.

Your standard Plant and Machinery policy covers equipment you own, not equipment you’ve hired, which is the gap Hired-In Plant Insurance is designed to fill.

Plant and Machinery policies generally cover damage from external events and exclude internal mechanical and electrical failure, such as engine, hydraulic or electrical faults.

Machinery Breakdown Insurance covers that excluded territory.

For businesses whose income stops when a machine stops, this cover, sometimes paired with extra-cost-of-hire extensions, can matter as much as the base policy.

Moving equipment between sites on a float or low-loader creates its own exposure, including during loading and unloading, which is where many transit losses actually occur.

Transit Insurance covers your equipment during transport.

Given the size and weight of most plant, a single transit incident can produce major damage.

Public Liability Insurance covers third-party injury or property damage arising from the operation of your equipment.

Principal contractors will require evidence of it before your machines come onto their site.

Road-registrable plant travelling on public roads may also need Commercial Motor Vehicle cover, and it is worth confirming which policy responds in which situation so there is no gap between the two.