Plant and other heavy machinery are the backbone of many industries. The financial implications can be significant if something happens to these valuable machines. The cost of repairing or replacing them is high, and the loss of a critical machine can slow or even halt normal business operations. Keep your finances safe and your business running smoothly with plant machinery insurance.
What is plant and machinery insurance?
Plant and machinery insurance is a type of business insurance that covers plant and other heavy machinery used across a range of industries, including construction, manufacturing, and agriculture.
It covers the machine against accidental damage, loss, theft, and damage caused by fire, floods, storms, and other natural disasters.
Do I need insurance for heavy machinery?
Heavy machinery and plant insurance offers a financial lifeline should the worst happen. Often operating in high-risk environments, accidents involving heavy machinery are not uncommon, and these high-value machines can be a target for thieves, too.
There are two main branches of this type of insurance, owned and hired in heavy machinery insurance. If you own your machinery, could your business absorb the cost of significant repairs or even a replacement of one or more machines? If you hire in your plant, the responsibility lies with you if something happens to the machinery during your hire. Could you shoulder that financial burden?
With policies available that also cover third-party claims relating to your machines, plant machinery insurance offers much-needed peace of mind within your high-risk industry.
What is and isn’t covered?
There are a number of risks faced by plant and heavy machinery, and the following are generally covered as standard in a machinery insurance policy:
- Accidental damage – even though you follow health and safety regulations stringently, accidents can still happen – for example, an employee could accidentally reverse one piece of plant into another.
- Theft – plant is often left on-site overnight, giving thieves an opportunity to steal a valuable piece of machinery. Storage units where you park your plant can also become a target, potentially leading to multiple losses at once.
- Fire and perils – fire and floods can cause extensive damage to plant, leading to expensive repairs or even total losses.
- Business interruption – when you lose a vital piece of plant, you can face significant work delays and a subsequent loss of earnings. This cover allows you to be compensated for such losses.
- Public liability – if you’re found liable for a third-party injury or personal property damage attributable to your heavy machinery, you could be faced with a large compensation claim plus legal fees. This is an essential cover to hold when you work around members of the public, and if you’re a subcontractor, you may need to hold this cover in order to obtain private and local authority work contracts.
Some policies offer additional cover as standard, too, including:
- Employers’ liability – to deal with employee claims for illness or injury, caused by operating or working around your heavy machinery.
- Own surrounding property cover – which can compensate you for damage to your property by your insured plant.
- Debris removal – to cover the costs associated with clearing a site after a plant accident.
It’s just as important to be aware of what isn’t covered. This includes general wear and tear of the machinery, intentional acts of damage, breakdown, and damage related to the use of plant contrary to the Road Traffic Act legislation (such as driving them on public roads).
What types of equipment are covered?
From builders and farmers to manufacturers and warehouses, heavy machinery keeps the cogs turning. Plant machinery insurance covers a range of machines and equipment, including:
- Forklifts
- Loading shovels
- Cranes
- Dozers
- Cherry pickers
- Excavators
- Diggers and mini-diggers
- Dumpers
- Telehandlers
- Concrete mixers
- Milling machines
- Circular saws
- Lathes and looms
- Machinery used in water and gas supply and power generation on-site
Owned plant vs hired plant insurance
You can get insurance cover for both owned and hired plant. When you hire plant, the contract usually stipulates that you’re responsible for any damage or losses incurred while it is under your care.
In terms of the type of cover available, hired plant insurance is the same as owned plant insurance. It ensures that once you’ve signed your hire contract, you can fulfil your legal obligations to the hiring company, funding repairs or replacements, dealing with employee or third-party claims, and covering any legal fees.
How much does heavy machinery insurance cost?
Your premium will be affected by several factors, including:
- The type of machinery
- The value of the machinery
- The nature of your business (a risk profile will be carried out)
- The types of cover you require and the level these are set at
- Your claims history
- Your chosen excess
FAQs
Can I get hired in plant insurance ad hoc?
Though you can take out annual cover for hired-in plant, you may also be able to secure a short-term policy. This is useful for tradespeople who only occasionally require plant.
Is continued hiring charges covered by plant machinery insurance?
Some insurance for heavy machinery includes continued hiring charges as standard. This compensates you for the ongoing hire charges you’ll face while the hired plant is being repaired following damage under your care. It’s important to note that there will be a limit on the number of days for which you’ll receive compensation – generally up to 90 days.
Does machinery insurance cover plant in transit?
Yes, your owned or hired plant will be covered while in transit.
Is plant insurance compulsory?
It is not a legal requirement to hold plant insurance, but many contractors and local authorities will not let you operate your plant on their sites without it.
Is specialist heavy machinery covered?
Park Insurance can help you find cover for specialist plant and machinery, whether you own it or are hiring it for a job.
Get in touch with Park Insurance today if you’d like to add plant machinery cover to your business insurance. We’ve been working with small businesses for over 30 years, and with our industry expertise, we can help you keep both your plant and your finances safe.