Do you think any sort of construction work without some equipment or machinery? Of Course not, on a construction site, various types of advanced machinery are required to complete the project. A contractor or sub-contractor wants to protect their equipment from damages, theft, break-down, or any uncertain conditions.
So they look for plant & equipment insurance policies to secure their assets. The insurance agencies provide indemnity to all plant & equipment that is covered under the policy. Make sure that you are opting for reliable insurance that benefits you to a great extent.
The business has to bear a lot of risks to gain profit. Even a business golden rule says “No Risk No Profit”. The uncertain & dynamic environment can impact more on your business. However, the risk factors can be reduced for equipment by buying a policy of plant & machinery.
What Equipment is Covered Under the Policy?
Here is the list of a few plant & equipment that are claimed for protection by the owners:
→Logging Machinery: Logging is the process for cutting & moving trees to other locations. So logging machines are useful as it loads the logs onto trucks.
→Self-Loading Vehicles: These vehicles load heavy equipment and transport it to the destination.
→Earthmoving Equipment: These are heavy-duty vehicles that are used to dig the land for construction like bulldozers, etc.
→Mining Machines: These are generally big trucks, diggers, loaders, etc. that extract the material beneath the surface like coal, rocks, etc.
Types of Cover Under Machinery Insurance
➤Break-down Cover: The equipment you own doesn’t remain the same throughout time. You’ll experience some mechanical faults. So, breakdown cover protects the machinery, when it’s part or as a whole doesn’t work due to some fault.
➤ Road Risk Liability: While on the road, the vehicles are prone to damages due to accidents. Sometimes the loss occurs to the third party property. So, the road risk liability insurance recovers such losses.
➤ Material Damage Cover: This insurance covers physical damage to the plant & equipment. For instance, an explosion in a construction area has damaged the loading truck. Then you can claim for such severe losses.
➤Consequential Loss Cover: Sometimes, the damages of machinery can stop the work for a few days. This interrupts the working of business which leads to financial losses. The project or event doesn’t complete on time. For such delays & failures, entrepreneurs try to protect them in advance.
➤ Downhole Insurance Cover: The downhole insurance cover is specially designed for drilling or logging equipment. Sometimes the machinery is stuck or damaged or lost below the surface of the ground. So, this insurance recovers such uncertainties.
➤ Hired-in Plant Insurance Cover: It refers to leased plant or equipment. While leasing the asset, there is a risk of plant or machinery to be stolen or damaged. So, if you have taken the policy, you can claim for loss.
It’s a brief about insurance coverage under plant & equipment policy. Hence, it is vital to secure your business from such losses as the future is unpredictable, and no one knows what next is coming.