What is a Contractor's Plant & Machinery Insurance

Since all the toughest jobs on any construction site are done by the equipment and tools, so any damage caused to these machineries can result in catastrophic loss. Therefore, contractor’s plant & machinery insurance is introduced in order to provide cover to the machinery and plants against any damage or physical loss.

What are the benefits

Having plant and machinery investment keeps the contractor relaxed as his/her machinery are protected against any loss or damage. Therefore, building contractors are always recommended to opt for plant and machinery insurance. Some of the benefits that contractor gets with this insurance policy are:

  • Under this plan, most of the insurance providers broadly cover damage or loss incurred to the mobile construction equipment like compressors, crane, bulldozer, excavators, etc. because of an accident arising due to external perils.
  • Insurance is offered as per the current replacement value of the machinery.
  • A contractor’s 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.
  • Provides complete coverage for both partial and total damage to machinery or equipment.

What is the scope of coverage

The Plant and Machinery Insurance covers the following:

  • The plan broadly covers loss or damage to the contractor’s construction mobile equipment, such as cranes, compressors, bulldozers and excavators due to an accident arising out of external perils.
  • The cover is operative while the insured property is at work or at rest, or being dismantled for the purpose of cleaning or overhauling, or during subsequent re-erection.


On payment of additional premium, you can opt for the following covers:

  • Express freight
  • Air freight
  • Owner’s surrounding property
  • Clearance and removal of debris
  • Additional custom duty
  • Escalation
  • Earthquake
  • Third party liability
  • Equipment mounted on floating vessel/craft
  • Terrorism

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