If you own/operate heavy machinery or you are a mobile plant operator, then you probably already have some idea of how challenging it can be to get the right insurance policy. Traditional liability and business insurance policies are not going to be adequate to protect you from the many risks inherent in this area. Whether you own or operate cranes, excavators, diggers, or large trucks, you need to know that you, your colleagues or staff, the general public, and the workspace itself are protected against the potentially high risks of a construction site. Having the wrong type of coverage leaves you exposed to internal and external threats that could damage your livelihood and leave you without income.
Why Do I Need It?
Your business is going to be highly dependent on your heavy machinery, and your insurance policy needs to reflect that. If you are unable to use your equipment, then you will lose the potential to generate an income. For farmers or construction contractors, the risk of equipment damage or loss can be very high. The high costs of your equipment make replacements or repairs very expensive, but having the right coverage can protect your finances from those risks. The fact that heavy machinery, and the environments where they are most commonly used, are themselves exposed to the risk of accidents means that having the right kind of insurance policy is crucial.
Did You Know?
There are two basic types of insurance limits for heavy equipment and mobile plants. These are:
- Market Value: This means that your policy will cover the costs of repairs or replacements to the market value of the equipment itself. This is usually done by getting a quote regarding the pre-accident value of the equipment.
- Agreed Value: If your equipment is written off due to damage or loss, then you may have an agreed value policy that will be used as the basis of your settlement.
Cybercrime can affect any business, and heavy machinery owners and mobile plant operators are no exception. Data breaches and cyber threats are on the rise in the construction sector as a whole, so your policy needs to protect from this as well as the usual coverages that you would expect. Even cranes can be hacked and used by untrained cybercriminals.
What Can It Cover?
A good Mobile Plant & Heavy Machinery insurance policy will have some standard elements, as well as the unique coverage options that will be essential for your business. Expect to see the following
- Material Damage: This protects you from any accidental damages that may happen to your equipment or your plant
- Road Risks: If your plant or equipment is registered for road use so that you can get to and from sites, then you need to have liability coverage that covers road use. If you cause any damage or injury while on the road, then this can protect you financially.
- Public Liability: The potential dangers of a construction or work site are many, and public liability can protect you from claims regarding death, injuries, property damage, or economic loss.
- Hired-In Plant: Hiring equipment from alternative sources can leave you vulnerable to gaps in your insurance coverage. By including Hired-In Plant coverage, any rented equipment will be insured as if it is your own.
- Breakdown: It can cost a lot of money to repair heavy equipment, and you will lose income while repairs are being carried out. Machinery breakdown cover can help to pay for replacement parts or for the total cost of repairs.
- Business Interruption: Cover for eligible trucks, trailers and mobile plant by way of payment of a weekly benefit if Your claim for Loss or Damage to Your Vehicle has been accepted under Material Damage
What Isn’t Covered?
Although Mobile Plant & Heavy Machinery insurance will be specifically tailored to your business setup and your needs, there are some areas where you will not be covered. If you are found to be under the influence of drugs or alcohol while operating your plant or your heavy machinery, then your insurance policy will be voided. Mechanical breakdowns caused by rust or wear and tear are not generally covered either, so maintenance is going to be essential.