Plant & Equipment Insurance

What is Plant & Equipment Insurance? 

Plant and Equipment Insurance is specifically designed to cover registered and unregistered mobile plants, as well as equipment taken to job sites. There are two main sections of cover, the first is insurance for accidental damage to the item & theft, or you can choose Public Liability cover only. Public liability insurance provides cover if you injure someone or damage their property while working or operating the plant. There are also optional covers available at extra cost, such as Goods on Hook, reimbursement of rental costs for a temporary hire, Road Risk and extended cover for Wet or Dry Hire. 

Common types of plant & equipment insured include trailers, excavators, mobile & tower cranes, farm machinery and forklifts. 

It’s important to remember that plant & equipment insurance doesn’t cover personal injury to passengers or others if the item is registered and on a public road. This is often called Compulsory Third Party (CTP) insurance and must be purchased before you drive the plant if it is registered.

Why is Plant & Equipment Insurance important?

Accidents happen, plants & equipment are stolen from sites, and people are injured. The damage to your plant can be very expensive to repair, as well as the cost of hiring a replacement item so you can complete the job.  Finding the money to pay for repairs or buy a replacement unit if yours is stolen can be difficult. In addition, legal defences costs and damages awarded by a court if you're found responsible for an injury to someone or damaging property, it can be very expensive.  

Insurance is a good way to manage financial risk. It’s easier to budget for monthly insurance premiums than to suddenly find enough money to pay for repairs or buy a new machine.

What does Plant & Equipment Insurance cover?

Plant and equipment insurance can come in different forms, some insurers specialise in mobile cranes, while others have insurance cover especially tailored for farming or the construction industry. So our usual advice is to explore your options and compare insurers and insurance covers. A brief summary of the main types of insurance and key features are:

  • Accidental damage to or theft of your plant & equipment - the policy, i.e. repair, reinstate or replace the damaged parts or accessories; pay the sum insured or market value; or replace the item and accessories;   
  • Road Risk - covering personal injury as a result of an accident if the unit is unregistered, as well as damage to property on a public road or public area. 
  • Public & Product Liability covers two sections, the first is Your liability for Personal Injury or Property Damage because of an Occurrence in connection with Your Business. The second is cover for Your liability for Personal Injury or Property Damage as a result of an Occurrence caused by Your Products.
  • Business Interruption – pays an agreed weekly benefit if a listed item is damaged. The cover starts from the time of the accident until repaired. 

Common types of plant and equipment include: 

  • Bobcats
  • Bulldozers
  • Asphalting machines
  • Earthmoving equipment
  • Farming machinery
  • Forklifts
  • Mining equipment
  • Road work equipment
  • Trucks, trailers and tippers.

Regardless of your occupation or industry, Insurance Advisernet has professional brokers that can discuss your business risks and assist you to manage the key risks, including recommending insurance options available.  Contact us today for an appointment. 

Frequently Asked Questions

●    What kind of insurance do I need for plant & equipment? 

Plant & Equipment insurance is designed specifically for these types of items and businesses. This is a package policy where you can choose the cover you need for your business, such as damage to your own items, public & product liability, road risk and agreed-on weekly benefits following downtime.  

●    What items are usually covered under plant & equipment?  

Plant & equipment insurance covers a wide variety of plant and mobile construction and industrial equipment, including bobcats, asphalting machines, forklifts, trucks, trailers and attachments, concreting equipment, excavators, mobile cranes and scissor lifts. The items can be unregistered, conditionally registered or fully registered.  

●    What is Equipment & Machinery insurance? 

Equipment & Machinery insurance is also known as plant & equipment insurance.  

●    How is the insurance premium calculated for Plant & Equipment? 

The key factors insurers consider when calculating the premium for each item include the type of item, experience of the operator, prior uninsured loss or claim experience, the value of the item and where the item will be used. The premium can also be higher if you choose to insure optional covers, such as Goods on Hook, reimbursement of rental costs for a temporary hire, Road Risk, and extended cover for Wet or Dry Hire. 


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