Are you covered by your plant and equipment insurance?
It’s tempting to automatically assume that your company’s business insurance coverage covers all areas of your organisation. You may not spend much time thinking about the intricacies of your cover because you are too busy running your business. However, if things don’t quite go according to plan and you find yourself in hot water, your company insurance will usually be the first thing that comes to mind.
Consider your stationary and mobile equipment for a moment. Would you be able to keep your firm running if a piece of equipment was stolen or damaged? Would you be able to replace a bobcat or a forklift on your budget? Customers in all fields of business almost invariably respond with a loud “no” to these basic questions.
What is Plant and Equipment Insurance, and how does it work?
Construction and other heavy equipment are covered under Plant and Equipment Insurance. This includes equipment that you use in-house, as well as equipment that you may lease to other businesses.
Can I get coverage for my mobile plant and equipment?
We understand that a major percentage of your company’s work may take place at locations other than its headquarters. Insurers can provide coverage for your mobile plant and equipment with this in mind.
Is this equipment covered by my business or motor vehicle insurance?
Individual clients are covered by business and auto insurance packages. In reality, you are advised to avoid cookie-cutter insurance; the best approach to find out if your plant and equipment are adequately covered is to have an insurance broker review your policies. It is certainly worth your effort to double-check your insurance coverage.
Consider the following scenario:
Tony’s landscaping company purchased earthmoving equipment a few years ago. A bulldozer was stolen from a construction site recently. Despite its recovery, the dozer was irreparably damaged.
Tony discovered that his insurance policy was insufficient because it did not cover the cost of repairing his equipment when he filed a claim. Because he was unaware of the details contained in his cover, the incident cost Tony a lot more than he intended. This kind of thing happens all the time, and it’s completely avoidable with the liability insurance.
Is Plant and Equipment Coverage Beneficial to Tradies?
A plant and equipment insurance policy could be the difference between staying in business and going out of business, depending on the nature of your profession. As such, you are advised to fully research your insurance and understand how a plant and equipment policy might affect your company.
What Industries Can Plant and Equipment Insurance Benefit?
Countless Australian businesses rely on heavy machinery. Plant and equipment insurance is necessary in a variety of businesses, including but not limited to:
- Civil projects in agriculture
- Earthmoving/excavation
- Construction Drilling
- Services related to forestry
- Mining operations and landscaping
- Plumbers
- Natural gas and oil
- Projects involving trains
- Services for road construction and safety
- Repairing a utility
- On-site bobcat digging
Plant and Equipment Insurance Covers What Kinds of Equipment?
The kinds of equipment that are typically covered by plant and equipment insurance is extensive. Here are just some of the items that may be covered.
- Air compressors
- Bulldozers
- Cranes
- Cherry pickers
- Bobcats
- Loaders
- Diggers
- Drills
- Equipment for excavation
- Forklifts
- Harvester
- Ram with hydraulics
- Irrigation equipment for industrial use
- Boom and jibe
- Equipement for levelling
- Log splitters and grinders
- Roller for Paver Pumps
- Sandblasters
- Scaffolding
- Shredders
What Kinds of Events or Incidents Does Plant and Equipment Insurance Cover?
The following provisions are typically incorporated in plant and equipment insurance coverage.
- Damages – If unanticipated occurrences cause damage to your equipment, your Plant and Equipment insurance will cover you. If your company rents out its equipment, you can also secure coverage for special situations. Personal effects of the equipment operator may be covered.
- Road Risk – Including Road Risk in your policy will protect you from legal liability if a loss occurs while your equipment is in use or while it is being towed. If the equipment is not self-propelled, no road risk can exist unless it is the trailer being towed, which is covered by the towing vehicle’s auto road risk coverage.
- Broadform Liability – Broadform Liability is a clause that protects you from liability if others experience a loss as a result of your equipment’s functioning.
- Breakdown Coverage – A system failure might cost your company thousands of dollars. In the event a piece of equipment becomes inoperable while in use for your business, you must pick the additional breakdown cover to be protected under this clause.
- Financial Protection – Many business owners choose to supplement their coverage with Financial Protection. If your equipment is damaged or breaks down, this will help you by compensating you for monetary losses while your equipment is out of commission.
Should I Consider Including Any Additional Insurance Provisions in My Plant and Equipment Policy?
It is usually preferable to learn about your options before a crisis occurs. There are a variety of other addendums that could be advantageous to your business. These are some of them:
- Expenses incurred when a machine is disposed of
- Costs of car rental
- Lifted commodities are damaged or lost.
- The cost of replacing a windshield
The last thing you want to do is put your livelihood at risk by assuming you have adequate insurance coverage. Contact an insurance broker to talk with a professional from the insurance industry. Brokers are experts who can provide you with the peace of mind that comes with knowing your company is safe, no matter what.
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