Engineering InsuranceContractors Plant And Machinery

Contractors Plant & Machinery Insurance

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Contractors Plant & Machinery Insurance

Contractors Plant and Machinery Insurance Policy designed to protect the interest of contractors against the damage or destruction of plant and machinery used for erection/construction purpose against - Fire, theft, burglary, RSMD. Terrorism, - Earthquake, flood, inundation, landslide, - Storm, tempest, cyclone etc. - Accidental external damage while at work or rest at the site due to faulty handling, impact, collapse, dropping, various civil engineering projects (like dwellings, office, hospitals, tunnels, canals etc.).


Contractors Plant and Machinery Insurance Policy meant for unforeseen and accidental physical loss or damage to equipment due to external causes. The equipment could be at work or rest, and the policy also covers the machinery while it is dismantled, re-erected or shifted within the project premises.
Plant and machinery which can be insured under this policy are as follow.

  • Road Rollers
  • Concrete mixer, concrete pumps
  • Pavers for asphalt or concrete finishing
  • Cranes, Lifting equipment and drilling equipment Road surfacing equipment
  • Vibrators
  • Chain blocks, pulley blocks
  • Site power-generating plant
  • Mobile mixing plant
  • Hauling equipment
  • Excavators and loaders
  • Earthmoving equipment: Bulldozer, grader, scraper, excavator, loader, dumper, etc
  • Batching plant for the production of concrete of asphalt
  • Bitumen tank sprayers

Key Benefits

  • Cover loss or damage to Insured plant & machinery or construction equipment because of an accident arising due to external perils like Fire, Accidental Damage, Riot, Burglary etc
  • Plant & Machinery / Equipment are at work, being dismantled for overhauling or cleaning purposes, or are at rest covered
  • Selection of Equipment or Plant & Machinery are allowed
  • Covers current replacement value of Insured equipment or plant & machinery


  • The policy provides comprehensive cover against physical loss or damage to the plant and machinery due to any cause other than those specifically excluded in the policy.
  • The cover is operative while the insured property is at work or rest, or being dismantled for cleaning or overhauling, or during subsequent re-erection.
  • Fire, lightning, explosion, aircraft damage
  • Riot, strike, malicious act or human error
  • Water damage, flood, inundation, storm, cyclone, tempest and allied perils
  • Landslide, subsidence and rockslide
  • Burglary and theft
  • Collision, Collapse, overturning and falling of a foreign object
  • Any other sudden, unforeseen, accidental damages like defective workmanship and material, lack of skill, Negligence

Add-on Covers

  • Owner's surrounding policy
  • Clearance and removal of debris
  • Additional custom duty
  • Airfreight
  • Express freight and holiday and overtime rates of wages
  • Dismantling
  • Escalation
  • Earthquake
  • Third-Party Cover
  • Floater cover
  • Terrorism


  • 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
  • Equipment 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
  • Loss or damage for which the supplier or manufacturer is responsible either by law or under contract

Claim Process

In the event of loss, following are immediate actions to be taken
To intimate to the insurer the occurrence of loss, submit full statement in writing of the claim, provide the nature and extent of loss and also the estimate of loss. Any delay in intimation might jeopardize the claim as the insurer may express inability in accepting liability of the loss/damage.

  • To take all steps to reduce and minimize the extent of loss damage and liability.
  • Proximate cause of the loss and assess the type/extent and whether it is within the scope of the policy.
  • To extend full co-operation to the insurer and the surveyor appointed for completion of the survey work and proper assessment of the loss.
  • Produce all such records and proof as may be required by the surveyor or the insurer for arriving at the extent of loss and the liability under policy.
  • Provide documents such as, claim form, Claim bill, copy of policy etc.
  • Keep the damaged property under the safe custody until advised by the surveyor/insurer regarding its disposal.
  • Identification of the subject matter insured

Why Choose PrishaPolicy

5 Reasons why you should choose us to be your policy issuing partner of choice. Allow us to tell you why we are one of the fastest growing insurance brokers.

Customer-Centric Culture

For us, you always come first. Our products and services are designed to find the best coverage for all.

A Decade of Market Leadership

Our teams expertise and experience makes them the perfect guides in choosing a policy that fits your needs.

Reliable and Consistent

Rest assured that everything will be taken care of without a glitch. From shortlisting to claims processing & delivering promises without a hitch.

Guided Policy Assistance

Our experts are forever ready to assist you through each policy detail with a fine-tooth comb.

Claims Assistance

Our DNA prompts - Sales is incomplete without timely support. From start to end, we facilitate smooth processing from lodging to settlement.

Still Thinking About It?

Get on a call with us. We take pride in being associated with you for competitively managing your risks with the best insurance covers and delivering a stress-free experience.

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Questions You Might Have

Should all the losses that are under the deductible be reported?

If the loss is below the deductible, it is not recommended to report it to the insurance provider. If one is not sure about the final amount of loss or deductible amount, it is recommended to contact the insurer.

What is the duration of Contractors All Risk Insurance policy?

Unlike other insurance policies, the Contractors All Risk Insurance plan is issued for the period of the contract that is from the starting of work until the work completes. Even though it is possible to extend the period of the policy if the completion of the contract gets delayed, but it is always wise to choose a slightly longer insurance period initially for avoiding paying a higher premium in case of extension.

For what value of machine the insurance should be purchased?

It is a requirement of this insurance that the sum insured be equal to the cost of replacement of the machines by new machines of the same kind and same capacity, which shall mean its replacement, or reinstatement cost, including freight, custom duties, if any, and erection costs.

Can we cover loss due to design defects in the engineering policy?

Yes, you can cover the costs of project damages caused by design flaws. Damage due to design is an exclusion in a normal policy, but by paying an additional premium, you can cover the design flaw in the policy. There are other forms of design defect cover, such as design defect-3 and design defect-4, that can be added to the policy as an add-on for an additional premium. We advise all of our clients to include this coverage in their erection all risk insurance.