Plant and Machinery
Insurance.

Plant and machinery insurance is designed to cover your mobile plant and machinery against accidental physical loss or damage. If your business is in construction, civil works, earthmoving, mining or agriculture and relies on plant to generate revenue, this is the cover designed to protect that equipment. Cover generally applies while plant is at work, at rest or in transit between sites, subject to policy terms.

Plant and machinery insurance does not typically cover general mechanical or electrical breakdown that is not caused by an external accident. Wear and tear, gradual deterioration and intentional damage are also generally excluded. Third-party bodily injury or property damage caused by the operation of plant is a separate matter generally addressed under public liability insurance. Conditions and exclusions vary by policy.

There is no single law requiring all businesses to hold plant and machinery insurance in Australia. However many principal contractors, project owners and equipment financiers may require evidence of cover as a condition of site access, contract award or finance agreement. Requirements vary widely.

A wide range of mobile plant and equipment can be insured under a plant and machinery policy. Common examples include excavators, bulldozers, graders, scrapers, cranes, concrete pumps, forklifts, compressors, generators and road rollers. Cover can often be extended to other plant types. Get in touch and we can confirm what equipment may be insurable and any conditions that apply.

Premiums for plant and machinery insurance are often calculated as a percentage of the total sum insured, typically in a range of around one and a half to four percent depending on the type of plant, how it is used and the industry it operates in. Higher-risk uses such as demolition, mining or civil works, older equipment and a prior claims history all tend to push the rate toward the upper end of that range. These are general market ranges only. An accurate premium requires an underwriter assessment of your specific plant and operations.

Plant and machinery claims vary widely. A minor theft or damage claim may involve tens of thousands of dollars. A total loss on a major piece of plant such as a large excavator or crane can run into hundreds of thousands or millions of dollars in replacement cost, without accounting for lost productivity while a replacement is sourced. Businesses without insurance bear these costs directly.

Some plant and machinery policies include an extension for hired-in plant: equipment that the insured does not own but is legally responsible for under the terms of a hire agreement. Cover for hired-in plant is not automatic and varies by policy. If your business regularly hires in plant, get in touch and we can confirm whether this extension is included and what limits or conditions apply.

Many plant and machinery policies include cover for transit, covering damage sustained while plant is being loaded, transported or unloaded between locations. The extent of transit cover and any limits on distance or transport method vary by policy. Check the policy wording or get in touch and we can confirm what applies to your cover.

An agreed value policy settles a total loss claim based on an insured value agreed at inception, regardless of market depreciation at the time of loss. A market value policy settles a total loss claim based on the actual market value of the plant at the time of loss, which may be lower than the original purchase price due to age and condition. The appropriate basis depends on the age and nature of the equipment and your specific circumstances.

Plant and machinery insurance is designed to cover accidental physical loss or damage from external causes such as accidents, theft, fire and transit incidents. Machinery breakdown insurance is designed to cover loss or damage caused by internal mechanical or electrical failure of plant and equipment. The two covers address different risk scenarios and are sometimes held together depending on the nature of the operation.

Plant and machinery insurance covers loss or damage to the insured equipment itself. Public liability insurance responds when a third party suffers bodily injury or property damage caused by business activities, including the operation of plant and machinery. Both covers address different risk scenarios and are commonly held together by businesses that operate plant on project sites or in public areas.

Insurers typically ask for a schedule of plant and machinery to be insured including make, model, year and value, the type of operations the plant is used for, the locations where plant operates, whether any hired-in plant is to be included, claims history and any requirements from principal contractors or financiers. When you get in touch, we will help you compile this information and present it to our insurer panel.

Notify us as soon as possible after an incident. For theft, report the incident to police and retain the event number. Do not dispose of damaged plant or authorise repairs without first consulting us, as this may affect the assessment of the claim. We will be actively involved throughout the claims process, not just at the point of initial notification.

A decline from a standard insurer does not mean cover is unavailable. We have access to a wider range of insurers beyond the standard market, including those who write plant operations in demanding environments and businesses with prior claims. Get in touch and we can identify what options are available for your situation.