For construction, earthmoving, agriculture, landscaping and mining businesses, plant and equipment are among the most valuable assets you own. When an excavator is damaged or a loader is stolen from site, the cost goes well beyond repairs: projects stall, deadlines slip and income stops. Plant and machinery insurance helps protect both the equipment and your ability to keep working.
What Is Covered as Plant and Machinery?
Mobile plant insurance can cover a wide range of equipment, including:
- Excavators, backhoes and bobcats
- Wheel loaders, graders and dozers
- Cranes, forklifts and elevated work platforms
- Tractors, harvesters and other agricultural machinery
- Rollers, compactors and road-making equipment
- Generators, compressors and portable plant
Common Cover Options
- Accidental damage: Damage from rollovers, collisions and other accidents on or off site.
- Fire and theft: Equipment left on remote or unsecured sites is particularly exposed to theft.
- Transit: Damage while equipment is being moved between sites on a float or trailer.
- Third party liability: Cover for damage your plant causes to other people’s property, including when operating on public roads where registration applies.
- Machinery breakdown: Sudden mechanical or electrical breakdown, often available as an option.
- Hire-in plant: Cover for equipment you hire from others, which you are often contractually responsible for.
- Additional hire costs: Helps pay to hire replacement equipment while yours is repaired.
Agreed Value vs Market Value
With agreed value, you and the insurer agree on the amount payable if the equipment is a total loss. With market value, the payout reflects what the equipment was worth at the time of loss, which can be lower than expected, especially for older machinery in a tight second-hand market. If you have finance on your equipment, agreed value can help avoid a shortfall.
Theft Prevention Matters
Plant theft is a significant issue across Australia. Insurers may ask about security measures, and some policies have conditions relating to them. Practical steps include:
- GPS tracking devices and immobilisers
- Secure, fenced storage with lighting and CCTV
- Recording serial and PIN numbers and taking photos of each machine
- Removing keys and securing attachments at the end of each day
Hired-Out Plant and Operators
If you hire your machinery to others, with or without an operator, let your insurer know. Wet hire and dry hire arrangements carry different risks and may need specific cover.
Keep Your Equipment Working
Gidda Insurance Brokers arranges plant and machinery insurance for single machines through to large equipment fleets, tailored to how and where you work. See our services or contact us on 0491 999 555 for a quote.
This article contains general information only and does not take into account your objectives, financial situation or needs. Before making a decision, consider whether the cover is appropriate for you and read the relevant Product Disclosure Statement (PDS) and Target Market Determination (TMD). Gidda Insurance Brokers Pty Ltd is an Authorised Representative (No. 001307383) of Regis Licensing Pty Ltd ABN 71 130 820 727, AFSL 338156.
