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A Beginner’s Guide to
Plant and Equipment Insurance

Plant and Equipment

Insurance is the major part of financial planning. The main purpose of taking any insurance is to secure yourself financially. In addition, it offers assistance in case of any medical emergency and helps you maintain your living standard. Life is very uncertain, and insurance is a kind of safe keep for your family.

Everyone might not require plant and equipment insurance, but if you are a contractor or a businessman, you are putting yourself at grave risk by not taking this precaution.

Now the main question arises...

Why is Plant and Equipment Insurance so Important for Contractors?

Being a contractor and businessman means you require the application of certain kinds of equipment or machinery. As a result, you are at potential risk of breakdown and damage to machinery and theft. Plant insurance prevents you from all these situations that will put a hole in your pocket.

Who are all the People Eligible to Purchase Plant and Equipment Insurance?

The plant and equipment insurance is also known as Construction equipment insurance and Machinery breakdown insurance.

The following people can buymachinery breakdown insurance:

  • Any individual who owns earthmoving machinery or equipment.
  • The contractors and subcontractors are working on a project or business.
  • All the financial institutions are working on construction projects.
  • If you are the user of the machinery.

What Benefits will you get After Buying Construction Equipment Insurance?

  • Your earthmoving machinery is always at risk of breakdown and damage. The plant and equipment insurance covers the repair of all your heavy machinery like cranes, bulldozers, drilling machines etc.
  • The construction equipment insurance prevents you from the troubles due to accidental loss at the construction site.
  • The plant insurance safeguards your machinery in both idle and running conditions.
  • The machinery breakdown insurance covers all the cleaning, service, and overhauling of the machinery.
  • To acquire comprehensive coverage against numerous perils such as earthquakes, terrorism, and third-party liability, purchase the add-on cover with the plant and equipment insurance.
  • The construction equipment insurance aids you in reducing equipment downtime and increasing operational efficiency.

What is not Covered by Plant Insurance?

Plant and equipment insurance doesn't cover a few things:

  • It doesn't cover the pre-existing damages of the machinery.
  • Electrical and mechanical breakdown of the equipment doesn't come under this insurance.
  • It doesn't cover the defects because the manufacturer
  • It doesn't cover the damage caused during the supply of the machinery
  • The damage caused to the machinery by the owner's negligence doesn't cover plant and equipment insurance.
  • The insurance doesn't cover the defect due to nuclear perils.
  • It doesn't cover the destruction or loss due to the explosion of a boiler vessel.
  • The insurance is not liable in case the damage is due to natural calamity.
  • The licensed vehicles for general roads don't come under plant and equipment insurance.


Being a contractor and a businessman puts you at a lot of potential risks. Therefore, there are certain precautions that you need to take. If you own earthmoving machinery, you must buy plant and equipment insurance. This insurance will protect you from being in extreme debt due to loss and deterioration of your machinery. Any business involving high functioning machinery can buy this insurance for their protection. It covers the repair of all your heavy machinery like bulldozers, drills etc.; it doesn't cover just a few things like pre-existing damage, damage due to manufacture and negligence of the owner, defects caused during the supply of the product etc.

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