For businesses operating in construction, earthmoving, transport, agriculture and other equipment-intensive industries, plant and machinery are essential to getting the job done.

If a key machine is damaged, stolen or breaks down, the impact can extend well beyond the cost of repairs. Projects may be delayed, replacement equipment may need to be hired and revenue can be interrupted.

Plant and machinery insurance helps protect your equipment and reduce the financial impact when something goes wrong.

What is plant and machinery insurance?

Plant and machinery insurance provides cover for certain types of accidental loss or damage to machinery, equipment and mobile plant.

Depending on the policy and cover selected, it may protect equipment such as:

• Excavators and loaders
• Cranes and forklifts
• Bulldozers and graders
• Agricultural machinery
• Mining and quarrying equipment
• Road-registered mobile plant
• Hired-in plant and equipment
• Tools and other business equipment

Cover can be tailored to suit the equipment your business owns, hires or operates.

What can plant and machinery insurance cover?

The cover available depends on the insurer, policy wording and options selected. A tailored policy may include protection for:

Accidental damage

Cover for physical loss or damage caused by events such as collisions, overturning, impact, fire, storm or malicious damage.

Theft

Protection if insured machinery or equipment is stolen, subject to the conditions and security requirements of the policy.

Machinery breakdown

Some policies can include cover for sudden and unforeseen mechanical or electrical breakdown. This is not automatically included in every policy and may need to be specifically arranged.

Road risk

Road liability cover may be available for eligible road-registered plant and machinery when it is being driven or operated on public roads.

Hired-in plant

Cover may be arranged for machinery your business hires from another owner, helping protect you against certain liabilities under the hire agreement.

Replacement hire costs

Depending on the policy, cover may be available for the cost of hiring replacement equipment while an insured machine is being repaired or replaced.

Business interruption

Additional cover may help protect your income or meet certain ongoing expenses when an insured event prevents your business from operating as usual.

Why a tailored policy matters

No two businesses use their equipment in exactly the same way.

The right insurance arrangement will depend on factors including:

• The type and value of your equipment
• Where and how the equipment is used
• Whether machinery travels between worksites
• Whether equipment is road registered
• The industries and projects you work across
• Whether you own, lease or hire equipment
• Your contractual responsibilities for hired-in plant
• The financial impact if key equipment becomes unavailable

An off-the-shelf policy may leave gaps if it does not reflect your fleet, operations and contractual obligations.

Common risks to review

When arranging or reviewing plant and machinery insurance, consider whether your policy appropriately addresses:

• Accidental damage and overturning
• Theft from worksites or storage locations
• Damage during transit
• Wet and dry hire arrangements
• Hired-in plant obligations
• Road use and public liability
• Machinery breakdown
• Replacement hire expenses
• Continuing finance repayments following a total loss
• Policy limits, excesses and exclusions

It is also important to keep equipment values current. If machinery is undervalued, the amount paid following a claim may not be enough to repair or replace it.

When should you review your cover?

Your insurance should be reviewed regularly and whenever there is a significant change to your business.

This may include:

• Purchasing or financing new equipment
• Selling or replacing machinery
• Taking on larger or different projects
• Working at new locations
• Hiring equipment from third parties
• Changing how equipment is transported or operated
• Expanding into a new industry or type of work
• Approaching your policy renewal

A regular review helps identify potential gaps before they become an issue during a claim.

Trade with confidence

Plant and machinery insurance helps protect the equipment your business depends on, but the policy needs to reflect how that equipment is actually used.

MKP Insurance works with businesses across construction, earthmoving, transport and other equipment-intensive industries. We take the time to understand your fleet, operations and risks before recommending suitable cover.

Already have a plant and machinery insurance policy? Contact MKP Insurance for a no-cost, no-obligation review of your current cover.