Contractor’s Plant & Machinery Insurance
What is Contractor’s Plant & Machinery Insurance?
Contractors' Plant and Machinery (CPM) Insurance is a specialized insurance policy designed to provide coverage on an annual basis for contractors who utilize various types of plant and machinery in their projects. These projects may vary in nature, type, and location, and the equipment required may differ accordingly. Equipment covered under CPM Insurance includes cranes, compressors, road-rollers, vibrators, welding sets, hydraulic excavators, and more. Unlike specific project-based insurance policies like EAR (Erection All Risks) or CAR (Contractors' All Risks), CPM Insurance offers coverage for contractors using their plant and machinery across multiple projects throughout the year, providing comprehensive protection against a range of risks and potential damages.
Why you should Buy Contractor’s Plant & Machinery Insurance from Wise Insurance?
The need of Plant and machinery insurance is more than ever before due to the following reasons
- One point contact for all requirements.
- Better understanding of risk, effective underwriting of portfolio and better risk management.
- Dedicated Risk engineers to cater construction sector clients.
- Financial strength and supreme claims paying capacity.
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.
What is Included in Contractor Plant & Machinery Insurance?
Material Damage: Coverage for accidental physical loss or damage to the insured plant and machinery due to perils such as fire, theft, vandalism, natural disasters (like floods, earthquakes, storms), collision, overturning, and other unforeseen events.
Own Damage: Coverage for damages to the insured machinery arising from its own operation, handling, or usage, including accidental damages during loading, unloading, transportation, and operation at the project sites.
Third-Party Liability: Indemnification for legal liabilities arising from third-party bodily injury, property damage, or financial losses caused by the insured machinery during its operation or use, including legal defense costs and settlements.
Hired-in Plant: Optional coverage for plant and machinery hired or leased by the contractor from external parties, extending the insurance protection to cover such hired-in equipment against damages or liabilities during the contract period.
Additional Coverages: Depending on the policy and specific needs, additional coverages may include loss of use or rental income, removal of debris, transit coverage, temporary repairs, and consequential losses resulting from insured events.
Optional Add-Ons: Insurance providers may offer optional add-ons or endorsements to tailor coverage according to specific requirements, such as increased limits of liability, extended coverage for hired-in machinery, and coverage for accessories, tools, or spare parts.
What is Excluded from Contractor Plant & Machinery Insurance?
- Failures or breakdowns of mechanical or electrical equipment
- Pre-existing flaws and damages
- The loss resulting from an explosion of a pressure container or boiler.
- On-road vehicles developed and licensed for regular use
- A factory or machine is located near a public highway.
- Machines degrade due to inactivity.
- Knives, bits, drills, saws, cutting-edge parts, Molds, and so on, wear or depreciate more rapidly by default.
- Vessels or crafts used on the water.
- Tidal surges can cause partial or total damage or loss.
- A nuclear threat, war, or an activity that appears to be warlike.
- During the testing of the machine.
- Equipment other than tunnel boring machines used underground
- Terrorism-associated damage.
- A deliberate or negligent act by the insured or his representative
- Suppliers or manufacturers are liable for any damages.
Insurance Benifits
- Large number of insurance policies
- Cover for Critical Situations
- Experience & qualified Staff
- Team of Experts Staff
Wise Insurance Contractor's Plant & Machinery Insurance provides financial protection against damage to such items whether they are being used or are at work-site or at rest or during their maintenance operations.
Contractors All Risk is a comprehensive insurance cover to the client for any contingency from the moment the material is unloaded at the site of the project and continues during storage, physical construction/erection and till the test run is over and during maintenance, if covered.
The policy does not cover the cost of replacing, repairing or rectifying defective material and/or workmanship. Unless there is a physical loss or damage, any cost for rectification or correction of errors during construction are not insured.
Not all insurance companies offer the same products or cater to the same customer base. Among the largest categories of insurance companies are accident and health insurers; property and casualty insurers; and financial guarantors.