Plant and Machinery Insurance

If you're a building contractor or a tradesman, you probably spend a lot of time working on the client's site, either with your own machinery, or a plant that you've hired. Damage or loss of expensive machinery could be a catastrophe for a small construction contracting business because these machines represent such a large investment.

Plant and machinery insurance can cover this cost and protect you against the loss of business machinery that you've hired. It protects the interest of civil contractors against the damage to or destruction of various civil engineering projects, such as office, dwellings, tunnels, hospitals, and channels.

Key Features of Plant and Machinery Insurance

  • It is designed for covering loss or damage to various plants and machinery used on project sites.
  • There is an option to cover only selected machinery under the policy.

What does it cover?

  • The plan broadly covers loss or damage to the contractor's construction mobile equipment, such as cranes, compressors, bulldozers and excavators due to an accident arising out of external perils.
  • The cover is operative while the insured property is at work or at rest, or being dismantled for the purpose of cleaning or overhauling, or during subsequent re-erection.

Add on Covers

On payment of additional premium, you can opt for the following covers:

  • Express freight
  • Air freight
  • Owner's surrounding property
  • Clearance and removal of debris
  • Additional custom duty
  • Escalation
  • Earthquake
  • Third party liability
  • Equipment mounted on floating vessel/craft
  • Terrorism

Who can take the insurance?

Any one of the following parties can take the insurance, either individually or jointly:

  • Owner of the plant and machines
  • Banks and financial institutions investing in the project
  • Contractor or the user of the construction machinery

Sum insured

The sum insured will be equal to the cost of replacement of each item by a new item of the same kind and capacity, which means current new replacement cost will include ordinary freight, customs duty, other charges, if any, and cost of erection.


The premium depends on the type of equipment, use of equipment, location, and risk you are entailing.


The company will not be liable under the policy if loss or damage is caused due to

  • Electrical or mechanical breakdown, failure, breakage or derangement
  • Damages due to explosion of any boiler or pressure vessel
  • Replaceable parts and attachment such as bits, knives, drills, saw blades, moulds or other cutting edges, parts which by their use suffer a higher rate of wear or depreciation.
  • Vehicles designed and licensed for general road use
  • Damage due to total or partial immersion in tidal waves
  • Public liability while the plant and machinery are on public roads
  • Wear and tear, corrosion, rust, deterioration due to lack of use
  • Machinery working underground other than tunnel boring machines
  • Water-borne vessels or crafts
  • War or war-like operations and nuclear perils
  • When undergoing a test of any kind
  • Pre-existing fault or defect
  • Willful act or gross negligence of the Insured or his representatives
  • Consequential loss of any kind
  • Damage for which the manufacturer/supplier is responsible
  • Damage due to terrorism

How to make a claim?

In the event of any loss or damage, follow the below-mentioned steps:

  • Inform insurance company immediately
  • Extend full cooperation to the surveyor deputed by the company
  • Submit duly filled claim form, along with necessary documents, to substantiate the financial loss suffered because of the accident

What is an office package policy?


An office package policy is a comprehensive insurance package specifically designed to cover organisational infrastructure and establishments including IT/ITES sector, government offices, etc.

This innovative cover allows you to safeguard your office property as well as employees under a single policy.

What is construction plant & machinery insurance policy all about?


This policy is specifically designed to safeguard building contractors and tradesman against any loss/damage caused to their plants and machinery. The construction machines represent a large investment and any kind of loss or damage caused to them can lead to a financial catastrophe.

Construction Plant & Machinery insurance covers this cost and safeguards you against any loss of business machinery.

Who needs office package policy?


It doesn’t matter whether you are a big-firm owner or a small business owner, if you are operating out of an office space, you are going to need an office package policy to help you face the brunt of adverse circumstances, in case any unfortunate event takes place in your office, such as fire or a burglary.

What are the benefits offered by this policy?


It provides a cover for the damage/loss of your machinery such as bulldozers, compressors, cranes, etc. The best part is, this insurance policy also covers them irrespective of the fact they are working or at rest, or have been dismantled for cleaning purposes.

What are the different types of offices that can be covered under an Office Package Policy?


Office package policy is designed to cover different sectors such as ITES and BPO Call Centres, Government Offices, Commercial Offices, Office premises which include manufacturing plants as well as warehouse and Software Development Offices.

How much premium would one need to pay?


The premium amount depends on various factors such as risk exposure and the insurer’s underwriting requirements.

What are the features of an office package policy?


As the name suggests, this policy comes in a package which signifies that it offers coverage against various unprecedented threats. An office package policy not only safeguards your office premises against the risk of fire, earthquake, etc. but also gives you coverage against activities like burglary, accidental breakage, mechanical/electrical breakdown, etc.

You can also get coverage for housekeeping services, sanitary items, publicity tools (such as neon signs) and safety appliances against explosions, lightning, etc.

What is the duration of this cover?


The duration of this cover is 1 year, and you will need to renew this police yearly if you want to continue with its benefits.

What are the exclusions of an office package policy?


Office package insurance doesn’t cover normal wear and tear or gradual deterioration of office equipment.

Furthermore, any loss caused to your office property due to war or war-like situations isn’t covered.

Is there a list of exclusions we need to know about before signing up for this policy?


This policy has certain major exclusions you should know before signing up for the policy. Few of them are:

1. Replaceable attachments and parts

2. Mechanical/electrical breakdown

3. Explosion of any pressure vessel or boiler

4. Waterborne crafts and vessels

5. Total or even partial immersion in tidal water

6. Acts of terrorism, war or civil war

7. Radioactive or nuclear energy/radiation emission

8. Wilful negligence

9. Damage caused due to underground working

What are the salient features of an office package policy?


With this policy, you can get protection against any damage caused to the insured property due to the situations described in the policy. In case, you are facing any issues with third-party legal liability, the office package policy will come to your rescue.

Along with protection against financial risks, this insurance policy also takes care of any personal accidental expenses incurred by your organisation.

Is there any cancellation charge for cancelling the policy?


Yes, you can get the policy cancelled by providing a written notice. In this case, you will get a refund of the premium subtracted by the amount for the period you were enrolled in the policy.

Do I have to always update my insurance provider about any changes in my contact details?


Yes, it’ really important to let the insurer know about any changes in your contact details as it will ensure timely delivery of all the correspondence sent to you.

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