Contractor's Plant & Machinery Insurance

Contractors plant and machinery insurance provide coverage for loss or damage caused to machines used in the construction site and manufacturing plant. Apart from this, the insurance plan covers third-party claims against bodily injury and property damage caused at the insured construction site during the policy tenure. Equipment such as forklift trucks, compressors, bulldozers, and drilling machines constitute a significant portion of a contractor's capital investment.

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Salient Features of Plant and Machinery Insurance:

Following are the key features of the Contractors plant and machinery insurance:

  • Contractor plant and machinery insurance 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.

Why is Contractor Plant and Machinery Insurance Required?

Building contractors whether owning or renting machinery, face significant financial risks in case of damage or loss. Contractors plant and machinery insurance provides essential protection, offering benefits and peace of mind by covering potential losses or damages. Contractors plant and machinery insurance is highly recommended for contractors to safeguard their valuable machinery investments.

  • Contractors plant & machinery insurance plan remains operative for all the items insured, whether these items are at work, being dismantled for overhauling or cleaning purposes or are at rest.
  • Machinery insurance that is also known as construction equipment insurance provides complete coverage for both partial and total damage to machinery or equipment.
  • Machinery insurance policy is offered as per the current replacement value of the machinery.

What does Contractors Plant and Machinery Insurance Cover?

The Plant and Machinery Insurance covers the following:

  • CPM Policy designed for coverage of physical loss or damage to insured plant and machinery at project sites.
  • Comprehensive protection against physical damage by any cause, unless explicitly excluded.
  • Complete coverage for partial or total damage to equipment or machinery.
  • Insurance provided based on the current replacement value.
  • Policy purchase available only after successful commissioning of the machinery.
  • Coverage extends to all insured items, whether in operation, at rest, or undergoing dismantling for cleaning and overhauling.

Contractors Plant and Machinery Insurance: Add Ons

On payment of additional premium, you can opt for the following add ons under contractor plant and machinery:

  • Express freight
  • Terrorism
  • Earthquake
  • Additional customs duty
  • Escalation of cost
  • Dismantling and shifting to a new location
  • Owners surrounding policy
  • Clearance and removal of debris
  • Third Party Liability
  • Air freight

What is not covered in Plant and Machinery Insurance?

The common exclusions under contractors plant and machinery insurance are as follows:

  • Damage due to terrorism risk
  • Loss or damage due to electrical or mechanical breakdown/failure
  • Pre-existing faults & damages
  • Loss or damage due to explosion of any boiler or pressure vessel
  • The excess as stated in the schedule
  • Damage for which the supplier or manufacturer is responsible
  • Any kind of Transit Risk

Loss/damage to insured plant and machinery due to:

  • Willfull act/negligence of the insured
  • Contractual liability, manufacturers guarantee
  • Consequential loss or liability of any kind or description

Who can Purchase Contractor Plant and Machinery Insurance Policy?

Anyone 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
  • The contractor or the user of the construction machinery

Contractors Plant and Machinery Sum insured & Premium

  • The insured amount will match the expense of replacing each item with a new one of the same kind and capacity. This includes the current new replacement cost, encompassing ordinary freight, customs duty, additional charges, if any, and the cost of erection.
  • The premium depends on the type of equipment, use of equipment, location, and risk you are entailing.

Contractors Plant and Machinery Insurance: Claim Process

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.
  • Post submission of required documents, claim will be processed or assessed based on the policy terms and conditions.

Contractor's Plant & Machinery Insurance-FAQ's

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Policybazaar for Business - Plant Machinery Insurance - Customer Reviews
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4.4/5
Based on 13 reviews
4.4
out of 5
Based on 13 reviews
3 users
10 users
0 users
0 users
0 users
4.5 March 02, 2022
Kishan
Ideal Process
My insurance plan provides cover for all sorts of damages and injuries. I was looking for a plan like this. I have found it on a good price from Policybazaar.
Bokaro
4 February 26, 2022
Ishan
No Spending Costs
With a sudden malfunction in the machinery, one of the worker broke a pack of bricks. We were able to get settlemnt for it from our insurance and were able to get a new set without spending costs.
Bilaspur
4.3 February 22, 2022
Anurag
Owner Property Coverage
As we were working on a site we took owner s surrounding property cover so that in case of mishap, we would be prepared for compensation.
Faridabad
5 February 18, 2022
Harshal
Freight Insurance
As we had to transport certain equipment, we booked air freight insurance for it to secure it against any damages. The insurance was rather affordble.
Kannur
4.5 February 14, 2022
Shreyash
Didnt Have To Pay Out Of Poacket
At one of the debreis removal sites, we had a slight accident and there was third party damages. Thankfully we had the insurance coverge with us and we didnt have to pay out of pocket for the damages.
Bikaner
5 February 10, 2022
Gautam
Claim Settlement For Vandalism
My cranes and other equipment were vandalised at night. i was able to get a claim settlement for the damages.
Amritsar
5 February 09, 2022
Jitendra
Add Ons That Are Needed
We have added the add ons of owners property, debreis removal, earthquake and third party liability in our policy coverage which provides us the deal that we needed. We had bought it from PolicyBazaar on cheap premiums.
Agara
4.5 February 09, 2022
Ram
Protection Against Da For Low Premiums
The recent project started by our company involves the isage of heavy machineries. Sometimes machineries get damaged on their way to site or due to some other reasons. We have bought the contractos plant and machinery insurance to ensure the safety against such damages. we have bought it on PolicyBazaar with premiums at 1000 only.
Hathras
4 February 01, 2022
Umakant
Good Packages
Buying plant and machinary insurance has proven to be beneficial for us. It protects us against a lot of things stike, theft, accident, fire and amny other things. It is an amzing packaging.
Agartala
4.3 January 31, 2022
Vikas
Time Saving
We have a heavy machine comapny. We needed insurance for it but as we were too busy we couldnt have the liberty to go down to the insurance office. We looked up online and found PolicyBazaar. We chose the online procedure which not only saved us time but gave us what we needed.
Kolar

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