Essential Things to Know About Plant and Equipment Insurance

By | March 26, 2020

Equipment Insurance

Earthmoving machinery, also known as the Yellow Plant, is an important part of plants and businesses from the construction industry. It includes giant machines like cranes and bulldozers that are very expensive. These are some investments that businesses don’t do daily. However, they are at risk of getting damaged or experiencing unfavorable conditions that may lead to pricey repair or permanent damage. 

To avoid getting affected by these situations, one needs to protect the machinery with the right kind of plant and equipment insurance. Whether it’s a forklift or a mining machine, the insurance policy protects all kinds of equipment that belong to the construction industry. 

What is Plant and Equipment Insurance

In the field of construction, all the major works of businesses depend on heavy machines. From constructing roads to mining and everything in between, various kinds of equipment and tools are everywhere. They help in digging, lifting, removing, and constructing the required structures. Similar to vehicles, they must be protected with a suitable insurance policy. For them, there is plant and equipment insurance.

The insurance policy type covers all kinds of earthmoving machines, including cranes, bobcat, and even small tools. Below are some machines that can be covered under this policy.

  • Bulldozer
  • Asphalt Sprayer
  • Cranes
  • Rock Crusher
  • Dewatering Pump
  • Cherry Picker
  • Mini-digger
  • Turf Laying Machine
  • Tractor
  • Bobcat 
  • Forklift
  • Logging machinery
  • Mining machines and equipment
  • Excavators
  • Pavers

Apart from these, various kinds of farming equipment and loaders can be protected by getting a suitable insurance type. 

How Does Plant and Equipment Insurance Cover the Machinery

The specialized insurance policy is capable of protecting various kinds of machines, but how? What does it do to ensure that the construction business isn’t suffering after an accident? 

When contractors or subcontractors are working on a large scale, they have a broad range of machinery insurance policies to cover their equipment and tools. When they choose plant and equipment insurance for their business, below are some incidents the policy can cover. 

  • Breakdown
  • Road Risk Liability
  • Material Damage
  • Dry/Wet Hired Plant & Equipment
  • Downhole Cover
  • Transit

How to Choose an Insurance Policy

When it comes to choosing a suitable policy, one has an option to think of two types: comprehensive earthmoving machinery insurance or third-party earthmoving machinery insurance. 

Before choosing a plan, buyers need to consider their requirements and analyze whether or not the policy covers all their needs. For example, if someone wants the policy to cover their earthmoving equipment against mechanical breakdown and also theft, then it is essential to ensure that both types of covers are available under the policy. 

In Australia, many companies have plant and equipment insurance for all kinds of construction works. Most earthmoving professionals want simple and straightforward policies for their businesses, so they need to reach a service provider who has a perfect plan for them. They can compare many plans of multiple companies, and pick a suitable one among them for their businesses!

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