When you depend on your machinery, tools, and other equipment to keep your business running, you do whatever you can to protect and maintain the tools of your trade. However, do you know if you have proper insurance coverage?

The cover you have makes a huge difference when it is time to make an insurance claim. The question now is, do you have the cover you need?

What is Plant and Equipment Insurance?

Plant and equipment insurance will cover the vital elements of your business, such as machinery, power tools, and forklifts. The coverage generally extends to indoor and outdoor equipment as well as mobile or stationary equipment.

Your policy will cover theft and damage to your equipment. Additionally, it will cover liability if a loss happens because of the equipment. Specifics can vary based on extra coverage you and your insurance professional have chosen.

What Industries Usually Need Plant and Equipment Insurance?

There are scores of industries that benefit from having plant and equipment insurance. People often think of the construction business as the type of business that needs plant and equipment insurance. However, there are many more who benefit from this type of cover. Including but not limited to,

  • Agricultural industry
  • Builders/ Construction/ Civil construction
  • Concrete/ Boom operators
  • Crane operators
  • Drilling operators
  • Earthmoving/ Excavation contractors
  • Logging industry
  • Metal recycling plants
  • Mining – Drilling/ Open Cut/ Underground
  • Pavers
  • Plant hire companies (dry and wet hire)
  • Quarry operators
  • Road construction/Road works
  • Waste Management

Why Do I Need Plant and Equipment Insurance?

Think about all the moving parts that make up your company. You have invested in your plant and equipment to get where you are today. However, unforeseen problems occur every day. If key pieces of machinery suddenly were damaged or stolen, would it impact your ability to work? Additionally, are you able to cover the cost of repairing or replacing the essential tools of your trade?

It is wise to plan for occurrences and be prepared in case an unfortunate event sidelines your business. You have enough to worry about whilst running a company. Plant and equipment insurance offers you peace of mind and security.

Road construction.

Do Smaller Businesses, Tradies, and Subbies Need Plant and Equipment Insurance?

Yes, plant and equipment cover is appropriate for companies of all sizes. Some believe the smaller operations need this insurance cover the most because they have so much riding on their equipment.

Are There Different Types of Cover in Plant and Equipment Insurance?

Plant and equipment insurance have different sections of cover based on the type of business you are operating. Generally, your plant and equipment policy will cover,

  • Breakdown Cover
  • Broadform Liability (Public Liability cover)
  • Consequential loss
  • Downhole Cover
  • Dry Hired Plant and Equipment
  • Hired – in Plant
  • Material Damage
  • Road Risk Liability
  • Transit
  • Wet Hired Plant and Equipment

Additionally, your insurance expert may recommend specific riders for your industry. It is wise to consider these suggestions. After all, those in the insurance industry have seen more unlikely events than most people could imagine.

What Types of Riders are Available?

There are several riders available to businesses. Here is a list of riders that are generally available. The details will vary based on your specific information and your industry. To learn which available riders are best for your company, speak with an insurance expert.

  • Agreed Value
  • Damage
  • Driving Risk While on a Public Road
  • Lease Payment Protection
  • Liability Coverage for All Business Activities
  • Liability While Being Used
  • Loss of Revenue
  • Machinery Breakdown
  • Theft
  • Wet Hire or Dry Hire

A red tractor being towed.

Making sure you have the proper riders on your plant and equipment insurance is vital. You may try and cut corners. Even though it is tempting to try and save a little money, remember that you get what you pay for most of the time. Additionally, many of the one-size-fits-all policies can leave gaps in coverage.

Consider this example.

**Case Study**

Jay owns and operates a small brewing company. He was eager to start production. So, he spent very little time looking over the details of his plant and equipment insurance policy and opted for a cookie-cutter policy that did not address the components of the manufacturing process.

After a few years, Jay has a problem with essential equipment breaking down, making production impossible. When he gets in touch with his insurance company, Jay discovers there is no rider for machinery breakdown.

Because Jay opted for fast and cheap insurance, he must come up with the funds to fix his machinery. A little time spent with an expert in plant and equipment cover would have saved Jay thousands of dollars.

If you operate a construction, mining, agricultural, or other business heavily invested in their equipment, plant and equipment, insurance cover is vital for your company.

If you have any questions or are interested in meeting with an insurance expert, please get in touch with Grace Insurance. Our staff is ready to assist you.

** Please Note** This content is for informational use only. It is not intended to replace advice from an insurance professional. Only a one-on-one discussion of your business and your needs will result in the right insurance policy for you.