A Contractor’s Plant & Machinery Insurance insures movable plant and machinery owned or leased by the principals or contractors and used on site for various construction work, repairs & maintenance jobs. An ‘All Risk’ policy that covers sudden and unforeseen physical damage to the insured electrical and mechanical machinery by any cause or peril that is not specifically excluded under the terms of the policy, it can be acquired by Owners of Machinery, Contractors, Banks and Financial Institutions which finance the machinery.
Why the Contractor’s Plant & Machinery Insurance?
Construction Plant and Equipment are often a major part of a contractor’s investment. The fact that the equipment is often exposed to extreme weather and natural perils, besides being used in hostile terrain; adds to the risk of damage to the equipment.
What is not covered under the Contractor’s Plant & Machinery Insurance?
- Electrical / mechanical breakdown
- Transit risks from site to site (separate marine cover is required)
- Vehicles designed and licensed for general road
- Hull and machinery of waterborne vessel / crafts
- Freezing of coolant or other fluids, defective lubrication, replaceable parts
- Plant / machinery working underground (unless specifically endorsed)
- Total and partial immersion in tidal waters
- Equipments undergoing testing
- Pre-existing defects at inception
- Loss or damage due to explosion of boiler / pressure vessel
- Cost of preparing drawings /patterns /core boxes
- Cost of alteration, improvement, overhauls, modifications, additions, material changes
- Consequential Loss
- Breakage / abrasion of wire or stands of rope / slings of crane