Contractor's Plant and Machinery Insurance

 

 

 

 

 

 

key benefits of Contractor’s Plant and Machinery Insurance

Construction Plant and Equipment often constitute a considerable part of a building or erection
contractor's investment. Moreover, heavy duty and movable machinery often operate in hostile terrain; are exposed to extremes of weather and natural perils; besides being exposed to a number of other hazards depending upon the nature of construction, erection work or usage. Salient features of this policy are:

• It covers various types of machinery, plant and equipment, both electrical and mechanical against unforeseen or sudden physical damage of the insured machinery due to any cause not excluded.
• There is an option to cover only selected machinery under the policy.
• It provides coverage for machinery at various locations by specifically mentioning the equipments at each location.
• The Policy can be taken by the owner, contractor or by the financiers of the machinery.

What does Contractor's Plant and Machinery Insurance not cover?

• Electrical / mechanical breakdown
• Transit risks from site to site (separate marine cover is required)
• Vehicles designed and licensed for general road
• Hull and machinery of waterborne vessel / crafts
• Freezing of coolant or other fluids, defective lubrication, replaceable parts
• Plant / machinery working underground (unless specifically endorsed)
• Total and partial immersion in tidal waters
• Equipments undergoing testing
• Pre-existing defects at inception
• Loss or damage due to explosion of boiler / pressure vessel
• Cost of preparing drawings /patterns /core boxes
• Cost of alteration, improvement, overhauls, modifications, additions, material changes
• Consequential Loss
• Breakage / abrasion of wire or stands of rope / slings of crane