Plant & Equipment / Motor Fleet

Why plant and fleet cover needs specialist attention

A construction company operating 50 items of plant across five project sites, plus a commercial vehicle fleet, has fundamentally different exposure to a business with vehicles parked in a single depot. Equipment moves between sites, operates in hazardous environments, gets hired in and out, and may be subject to different contractual requirements on different projects.

Common issues we find in mid-market plant programs include inadequate sum insured values based on depreciated book value rather than current market replacement cost, gaps in cover for hired-in plant where the hire agreement transfers risk, limited or no business interruption cover for key revenue-generating equipment, and insufficient transit cover for equipment moving between sites.

What we cover

Mobile plant and equipment — covering owned, hired-in and leased equipment on an all-risks basis including accidental damage, theft, fire, storm and transit between sites.

Motor fleet — covering commercial vehicles, light vehicles and specialist vehicles including comprehensive, third-party property damage and compulsory third-party insurance across all relevant state jurisdictions.

Hired-in plant — covering your liability for damage to equipment hired from third parties, as specified in the hire agreement.

Breakdown — covering mechanical and electrical breakdown of plant and equipment, including the cost of temporary replacement equipment to maintain project schedules.

Business interruption — covering revenue loss when key equipment is out of service due to an insured event, calculated against the actual hire rate or revenue contribution of the equipment.

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