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Plant and Equipment

Plant and Equipment

Incorporating up to seven important cover options into one package, Construction Plant and Equipment insurance has been designed to protect all types of mobile plant and equipment from the smallest post hole digger to the largest fixed or mobile cranes. Construction Plant and Equipment insurance can be tailored to meet your needs, and provides a simple and easy one quote, one application process.

 

Construction Plant and Equipment insurance cover options include:

 

  1. Material Damage – provides cover for owned mobile plant and equipment
  2. Hired in Plant – provides cover for non owned mobile machinery and plant hired in
  3. Additional Benefits – provides a combination of automatic and optional benefits which allows you to tailor coverage to your needs
  4. Financial Protection – provides a combination of covers which allows you to tailor coverage to protect your business from financial loss
  5. Breakdown – provides cover for mechanical breakdown of mobile machinery and equipment
  6. Road Risk – provides Third Party Property Damage cover for registered vehicles
  7. Broadform Liability – provides comprehensive legal Liability protection for your business activities

 

Section 1: Material Damage

Provides cover for sudden and unforeseen physical loss, damage or destruction including theft for owned mobile plant and equipment.

 

BENEFITS COVER / SUB-LIMIT DESCRIPTION
Basis of Settlement Market Value Plus now as standard – No valuation required The basis of settlement in the event of a total loss is the nominated sum insured subject to that nominated sum insured being within 85% of the assessed market value. If not the settlement amount will be the market value + 15%.
New Replacement benefit following total loss  Applies to all motor vehicles and machines purchased new and less than 2 years old  Peace of mind cover for new items.
Accidental overload Yes Important cover for machines designed to lift.
Dry hire Yes Automatically covered once insured declares activity. Includes theft by hirer.
Unspecified attachments $10,000 or 10% of sum insured whichever is lesser Reduces chances of having no cover for undeclared items.
Substitute machines Yes Provides cover for similar machines whilst insured item is undergoing repair or maintenance.
Transit cover Automatically covered by road, rail and air. Transit by water must be declared and accepted. Some policies may restrict cover to the contract site only.
Hired in Machines Automatic sub – limit of $50,000 in aggregate any one period of insurance Covers unspecified hired in machines of a similar nature to those specified on the schedule. It does not include road registered trucks, trailers, motor vehicles and equipment of a static nature.
Non-aggregation of excess Yes Where two or more machines are damaged from the one event or two or more sections of the policy are triggered, then the highest single excess shall apply.
No Blame Excess Yes – Applies to all insured machines and vehicles No need to pay the excess at the time of a loss if you can clearly identify the third party at fault.

 

Section 2: Hired-In Plant

Provides cover for sudden and unforeseen physical loss, damage or destruction including theft for mobile plant and equipment hired in by the insured.

 

BENEFITS COVER / SUB-LIMIT DESCRIPTION
Loss of hiring charges Automatic sub-limit of $50,000 Covers the loss of future hire costs back to the Plant owner.
Legal costs Covered up to $50,000 In case of a legal dispute between insured and the owner of the Plant.
Choice of cover type Blanket cover and specified contract cover available Blanket cover – once they nominate the type of machinery normally hired there is no need for the insured to notify you every time they hire-in machinery. Specified contract- Ideal for plant on longer term hire.
On hire on dry hire terms Optional extension Designed to cover items that are dry hired in by the insured then dry hired to another hirer.

 

Section 3: Additional Benefits

Automatic and optional benefits.

 

BENEFITS COVER / SUB-LIMIT DESCRIPTION
Damage to lifted goods Automatic sub-limit of $250,000 (can be increased) Accidental damage cover specifically developed for machines designed to lift goods. Covers both insured and customer’s goods. Unlike hook liability, no negligence required.
Multiple crane operation Automatically covered (dual & multi lift) Unlike some competitors there is no need for the insured to notify you or the insurer every time they perform a multi-lift.
Expediting costs Automatic sub-limit of $25,000 or 20% of the indemnity payable whichever is the lesser Covers the reasonable additional costs to cover temporary repairs or expedite permanent repairs.
Recovery costs – no damage Automatic sub-limit of $50,000 Some policies require that there is a damage claim in order to pay for recovery costs. Policies we offer cover up to $50,000, no damage required.
Recovery costs – damage Automatic sub-limit of $250,000 Covers dismantling, disposal, recovery and transportation of a machine following damage as well as removal of debris.
Employees’ property damage Automatic sub-limit of $5,000 Covers the personal property of the insured’s employees upon damage to a machine.
Indemnity to hirer – wet hire Yes Also known as hold harmless agreement, it provides cover for the hirer or principal contractor if they wet hire the machine/s from the insured. Fulfils some of the insured’s contractual obligations.
Appreciation in value Yes – up to 25% of sum insured Allows for an increase in value of a machine of up to 25% of the sum insured during the period of insurance. Useful cover for imported machines or those in high demand.
Extra costs of reinstatement Yes – 10% of the Sum Insured or $50,000 whichever is the lesser Covers some additional costs incurred to repair a machine such as costs to comply with legislation.
New Replacement benefit following total loss Applies to all motor vehicles and machines purchased new and less than 2 years old. Peace of mind cover for new items.
Hire Car costs following theft Up to $5,000 / 30 days Applies to stolen Motor Vehicles less than 3,500 kilograms
Excess free windscreen cover Yes One excess free windscreen cover per item per period of insurance for motor vehicles. A $5,000 aggregate limit any one period of insurance applies to machines.
Sign writing or fixed advertising signs Yes No limit
Repatriation of Employee Yes, automatic sub-limit of $5,000 Covers overnight accommodation and travel costs to the point of departure.
Locks and Keys Limit of $2,500 per machine, $10,000 limit in aggregate any one period of insurance. Cover for locks and keys if they are destroyed, lost,damaged or illegally duplicated.
Fire Brigade and / or Emergency Services Charges Automatic sub-limit of $20,000 any one period of insurance. Covers fire extinguisher and / or emergency services costs that the insured is legally liable for.
Funeral Expenses Automatic sub-limit of $5,000 any one period of insurance. Covers funeral costs for employees fatally injured following an event of damage to an insured machine. This benefit will not be reduced by any accident compensation.
Additions / deletions of machines Yes – 60 day notification period / automatic sub-limit of $250,000 Limit can be increased to meet insured’s needs. Peace of mind cover that is particularly useful for insured’s with large and high turnover schedules.
Agreed value Optional extension – valuation required from a licensed Valuer. This basis of settlement is suitable for machinery that is specialised or modified for specific work and for unique one-off machinery.
Owner’s protection – excluding dry hire Automatically included Provides additional protection for the insured by deleting a number of exclusions and conditions in the policy such as operating the machinery unlawfully or outside manufacturer’s specifications. This cover is subject to the insured having no knowledge of such practices and covers the conduct of employees.
Owner’s protection plus – including wet hire and dry hire Optional extension As above, but includes dry hire situations and covers the conduct of employees, hirers and any person engaged to operate the machinery.
Hired-out plant – damage waivers Optional extension Provides cover for the insured or hirer when a machine is Dry Hired and the Dry Hire Agreement provides for the insured to arrange cover on behalf of the hirer usually for a fee.

 

Section 4: Financial Protection

Covers loss of profit that occurs as a result of damage or breakdown damage (if this cover is taken) to a machine which causes an interruption to the business.

 

BENEFITS COVER / SUB-LIMIT DESCRIPTION
Loss of revenue Optional cover Recommended for machinery that the business is heavily reliant on to produce income and cannot be easily replaced.
Increased cost of working Optional cover Covers the increase in cost of normal use. Recommended for machinery that can be easily replaced or hired.
Lease payments protection Optional cover Covers 90% of the monthly lease payment on machines following a loss. Prolonged downtime can financially ruin a business.
Lease value protection Optional cover Covers the gap between the lease payout amount following a total loss and the amount of indemnity up to a maximum of 20% of the indemnity.

 

Section 5: Breakdown

This section covers the sudden and unexpected breakdown of a mechanical, electrical or electronic part of a Machine that prevents the normal use of the machine.

 

BENEFITS COVER / SUB-LIMIT DESCRIPTION
Machinery / Electronic Breakdown Optional cover  Available for selected machine types

 

Section 6: Road Risk

Cover for Third Party or Property Damage arising from the use, operation or towing of a registered road vehicle or machine in connection with the business.

 

BENEFITS COVER / SUB-LIMIT DESCRIPTION
Defence costs  Yes  Covered to limit of liability.
 Permit or conditionally registered vehicles  Yes  Covered
 Hired-out road vehicles – Damage waivers  Yes  Covered
 Cover for principals  Yes  Meets the insured’s vicarious obligations.
 Dangerous Goods Limit  Automatic sub-limit of $1,000,000  Ability to increase limit.

 

Section 7: Broadform Liability

Covers legal liability for personal injury, property damage or advertising injury caused by an occurrence in connection with the declared business activities.

 

BENEFITS COVER / SUB-LIMIT DESCRIPTION
General Liability cover for all declared activities Yes Some competitor wordings only cover nominated machines whilst operating as a tool of trade.
Products Liability Yes Cover for completed operations.
Cover for registered vehicles whilst operating as a tool of trade Yes – Automatic Reduces possible gaps in cover
Defence costs in addition to the limit of indemnity Yes Defence / Legal costs will not erode the limit of liability.
Property in physical and legal control Automatic sub-limit of $250,000 This can be increased to meet the insured’s needs
Hook Liability Automatic sub-limit of $250,000 Vital cover for machines designed to lift goods by hook.Can be increased to meet the insured’s needs.
Vibration and removal of support Automatic sub-limit of $1,000,000 Valuable cover for the likes of excavation & drilling contractors
Dry hire Yes Automatically covered once insured declares activity.
Damage to underground services Yes – covered to the limit of liability Vital cover for occupations such as excavation, drilling and trenching contractors. Additional protection provided for the insured if their employees act outside the knowledge and practices of the Insured business and fail to obtain Dial Before you Dig plans.
Principals Vicarious Liability Yes – Automatic Indemnifies the Principal in respect to their vicarious liability associated with work performed by an Insured as part of their business under a Contract.