Mobile plant and equipment insurance
What is mobile plant and equipment insurance?
Plant and equipment insurance is a specialised form of business insurance designed to provide machinery insurance in the event of damage or loss of machinery. This insurance product provides financial protection for businesses that own, lease, or hire heavy machinery and equipment.
Mobile plant and equipment this type of insurance could cover include excavators, bobcats, scissor lifts, forklifts, tractors, trailers, generators, and skid loaders. These are vital assets for construction, mining, manufacturing, forestry, and agriculture businesses in Australia. Earthmoving equipment is another expensive investment that can be covered by mobile plant and equipment insurance.
What does mobile plant and equipment insurance cover?
Policies will vary depending on your business insurance provider and the specifics of the policy you take out, so always read the policy wording to know what is included and excluded from your insurance policy.
Business insurance cover for plant and equipment may include:
Material damage
Many plant and equipment insurance policies cover accidental loss and damage to insured plant and equipment due to natural disasters, accidental collisions and equipment overturning. Some policies may also offer rental equipment so business operations can continue in the event of claim.
Theft and vandalism
This protects you against financial losses if insured machinery is stolen or damaged by a third party. It covers the cost of repair, reinstating, or replacing the damaged parts and accessories of the equipment, or, in the case of total loss, it It may also pay the sum insured or up to the market value of the equipment, depending on your policy’s underwriting.
Business interruption
Some business insurance policies may offer compensation for lost income if the insured equipment or machinery is damaged or stolen, preventing business operations from operating as usual.
Public liability insurance
Public liability cover may help cover legal and compensation costs when the use of machinery or equipment causes injury or property damage to a third party.
Hired-in plant insurance
Hire-in plant insurance is divided into dry and wet hire insurance products. Dry hire insurance protects machinery and equipment that has been rented to a third party without an operator. Wet hire protects machinery and equipment rented to a third party with an accompanying operator. Whether you have opted for a wet or dry hire, hired plant insurance can protect you against damage and loss of rented equipment.
Choosing your mobile plant and equipment insurance
Different industries have unique risks, and insurance policies differ in terms of coverage, so it is important to understand the sum insured and the excess amount payable in the event of a claim. Check your policy to see if it covers breakdowns, theft and business interruption.
Always read the Product Disclosure Statement (PDS) and the Target Market Determination (TMD) to help you understand the inclusions and exclusions of your policy and decide whether the policy is the right fit for your business.
If you’re considering plant and equipment insurance, consulting with an experienced insurance broker or comparing different insurance policies can help you find a policy that meets the needs of your business.
Meet our business insurance expert, Adrian Taylor
As a General Insurance expert with over 13 years’ experience in financial services, Adrian Taylor strongly believes in the protection and peace of mind that all types of business insurance provide business owners. Adrian says this type of cover can be the difference between a business staying afloat and going under if trouble arises.