The execution of almost all civil engineering projects, like residential & non-residential properties, schools, hospitals, bridges, etc. demands the usage of various plants and machinery to aid their construction and renovation. Bulldozers, cranes, compressors, forklifts, hydraulic excavators are some examples of the machinery used in construction projects.
These machinery are frequently exposed to high risks due to the nature of its usage on a construction site. Then, there is also the risk of natural calamities, like earthquakes, floods, and storms, causing damage to these machinery and plants. So, the contractors plant and machinery insurance was introduced to protect the interests of the contractors whose machinery and plants were damaged or destroyed during the course of a civil engineering project.
A contractor’s plant and machinery insurance policy indemnifies the insured civil contractor for any damage caused to the latter’s machinery and plants during an ongoing civil engineering project or construction.
The plant machinery insurance covers the damage costs of the property of a contractor, whether such property is at work or rest. Some contractors plant and machinery policies also indemnify the contractor for any damage caused during dismantling the machinery for the purpose of overhauling or cleaning or when the machinery is being shifted within construction site premises.
A contractors plant and machinery insurance policy is issued according to the machinery’s current replacement value. Depending on the insurance policy, partial or total cover for damage to the machinery and equipment is offered to the contractor.
The plant machinery insurance covers the damage costs of the property of a contractor, whether such property is at work or rest. Some contractors plant and machinery policies also indemnify the contractor for any damage caused during dismantling the machinery for the purpose of overhauling or cleaning or when the machinery is being shifted within construction site premises.
A contractors plant and machinery insurance policy is issued according to the machinery’s current replacement value. Depending on the insurance policy, partial or total cover for damage to the machinery and equipment is offered to the contractor.
Typically, a contractors plant and machinery insurance provides a cover to the contractor for damages on an annual basis. The contractor also has the freedom to use his plant and machinery for different projects during the tenure of the insurance.
Apart from the civil contractor, owners of the machinery and plants and the banks or financial institutions investing in the civil engineering project can avail of the contractors plant and machinery insurance policy.
The insured has the responsibility to take all reasonable steps to ensure that the insured property, i.e., the machinery or plant, is used in efficient working conditions and maintained adequately so that no machinery or plant is habitually or intentionally overloaded.
The insured must at all reasonable times comply with the manufacturer’s instructions for operating, inspection, and overhaul of the machinery. The insured must also abide by the governing statutes and other binding regulations during the tenure of the civil engineering project.
The tenure of a contractors plant and machinery insurance policy cover begins with the commencement of the construction work or upon the arrival of the machinery, covered under the policy, at the site, whichever is earlier.
To conclude
A contractors plant and machinery insurance policy indemnifies the insured, i.e., the contractor, owner of the machinery & plant, or the investors, for any damage caused to the insured machinery or plant. The policy offers protection to the insured’s machinery and saves the insured from avoidable financial loss.