What is Contractor’s Plant & Machinery Insurance?
Execution of almost all projects necessary requires use of various types of plant and machinery. The nature and the type of equipment may differ according to the nature, type and location of a project and may even differ at different stages of the project. Such equipment may comprise of cranes, compressors, road-rollers, vibrators, welding sets, hydraulic excavators and the likes. While it is possible to have the contractor’s Plant and Machinery covered under an EAR or CAR Policy at specific project sites, Contractors’ Plant and Machinery (CPM) Insurance has been designed to provide a cover on annual basis to a contractor who may be using his plant and machinery at different projects during the year.
Why Do You Need Contractor’s Plant & Machinery Insurance
It covers all the damage/loss of the insured’s machinery such as cranes, bulldozers, compressors, etc. The advantage of this insurance policy is that it provides cover to the insured’s machineries irrespective of the fact that they are working/ at rest/ dismantled for cleaning purposes.
Who Needs Contractor’s Plant & Machinery Insurance?
It’s an All-Risk Policy, i.e., everything is covered except specifically excluded. The policy can be taken by the Owner, Lessor, or Hirer (where responsible either legally or through a leasing agreement) of the Machinery/Equipment.
Additional add-ons one should buy with this policy:
- Owner’s Surrounding property.
- Third Party Liability.
- Escalation.
- Removal of debris.
- Inclusion of Express Freight, overhead charges, overtime wages, air freight charges.
- Major exclusions under Contractor's plant and machinery insurance policy.
- Excess – but highest single deductible concept applies.
- Electrical or Mechanical breakdown/ derangement – but as a result if an accident happens causing external damage, then such consequential damage is payable.
- Loss of or damage to replaceable parts and attachment.
- Explosion of any boiler or pressure vessel.
- Damage to vehicles designed and licensed for general road use – unless used exclusively on construction sites.
- Loss of or damage to Hull and machinery of waterborne vessels or crafts.
- Loss or damage due to total or partial immersion in tidal waters.
- Transit loss.
- Wear and tear.
- Testing usage.
- Plant and/ or machinery working underground.
- Earthquake.
- Terrorism.
- Nuclear.
- Pre-existing faults.
- Willful negligence.
- Damage for which the supplier or manufacturer is responsible either by law or under contract.
- Consequential loss or liability of any kind or description.
- Inventory loss.
- Pay loaders on barges cannot be covered under CPM.
InsureDost, we are a leading multi-company insurer that serves its customers for all their insurance needs. Practice of a decade in general insurance, have a highly trained team with vast experience of general insurance domain.
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