+91 90333 30444
info@finoxo.in

Contractor's Plant & Machinery

What is Contractor’s Plant & Machinery Insurance?

Contractors’ Plant and Machinery (CPM) Insurance is essential for protecting the diverse range of equipment used across various projects. The type of machinery, such as cranes, compressors, road rollers, vibrators, welding sets, and hydraulic excavators, may vary based on the project's nature, type, and location, as well as its specific stages.

While equipment can be covered under an EAR or CAR policy for specific project sites, CPM Insurance is designed to provide comprehensive annual coverage for contractors using their plant and machinery across multiple projects throughout the year.

Who needs Contractor’s Plant & Machinery Insurance?

The policy can be taken by the Owner, Lessor or Hirer (where responsible either legally or through a leasing agreement) of the Machinery/Equipment.

Why you should Buy Contractor’s Plant & Machinery Insurance?

The policy provides comprehensive coverage for the insured's machinery, including cranes, bulldozers, compressors, and other equipment. One of the key advantages of this insurance is its flexibility, offering protection regardless of whether the machinery is operational, at rest, or dismantled for maintenance or cleaning purposes. This ensures continuous coverage for various scenarios, safeguarding valuable assets against potential damage or loss.

The need of Plant and machinery insurance is more than ever before due to the following reasons

1

One point contact for all requirements.

2

Better understanding of risk, effective underwriting of portfolio and better risk management.

3

Dedicated Risk engineers to cater construction sector clients.

4

Financial strength and supreme claims paying capacity

What is covered by Contractor’s Plant & Machinery Insurance?

  • It’s an All Risk Policy, i.e., everything is covered except specifically excluded.

  • Excess – but highest single deductible concept applies.

  • Loss of or damage to replaceable parts and attachment.

  • Damage to vehicles designed and licensed for general road use – unless used exclusively on construction sites.

  • Loss of or damage to Hull and machinery of waterborne vessels or crafts.

  • Transit loss.

  • Testing.

  • Nuclear

  • Willful negligence.

  • Consequential loss or liability of any kind or description

  • Electrical or Mechanical breakdown/ derangement – but as a result if an accident happens causing external damage then such consequential damage is payable.

  • Explosion of any boiler or pressure vessel.

  • Loss or damage due to total or partial immersion in tidal waters.

  • Wear and tear.

  • Plant and/ or machinery working underground.

  • Terrorism.

  • Pre-existing faults.

  • Damage for which the supplier or manufacturer is responsible either by law or under contract.

  • Inventory loss.

  • Pay loaders on barges cannot be covered under CPM.

Frequently Asked Questions

Insures Machinery/Equipment

  • during the period of Insurance
  • whilst at the Project Site (or in storage)

The policy can be taken by the Owner, Lessor or Hirer (where responsible either legally or through a leasing agreement) of the Machinery/Equipment.

The policy can be taken by the Owner, Lessor or Hirer (where responsible either legally or through a leasing agreement) of the Machinery/Equipment.

  • Excess – but highest single deductible concept applies
  • Electrical or Mechanical breakdown/ derangement – but as a result if an accident happens causing external damage then such consequential damage is payable
  • Loss of or damage to replaceable parts and attachment
  • Explosion of any boiler or pressure vessel
  • Damage to vehicles designed and licensed for general road use – unless used exclusively on construction sites
  • Loss of or damage to Hull and machinery of waterborne vessels or crafts
  • Loss or damage due to total or partial immersion in tidal waters
  • Transit loss
  • Wear and tear
  • Testing
  • Plant and/ or machinery working underground
  • Earthquake
  • Terrorism
  • Nuclear
  • Pre-existing faults
  • Willful negligence
  • Damage for which the supplier or manufacturer is responsible either by law or under contract
  • Consequential loss or liability of any kind or description
  • Inventory loss
  • Pay loaders on barges cannot be covered under CPM

  • Owner’s Surrounding property
  • Third Party Liability
  • Escalation
  • Removal of debris
  • Inclusion of Express Freight, overhead charges, overtime wages, air freight charges

Any contractor’s plant & machinery equipment like excavators, rollers, dumpers, and earth moving equipment, cranes, drilling machines etc. which are utilized in the construction or Erection site can be covered under this policy.

Yes, it should be informed as each equipment has a unique serial number.

Yes.

It covers all the damage/loss of the insured’s machinery such as cranes, bulldozers, compressors, etc. The advantage of this insurance policy is that it provides cover to the insured’s machineries irrespective of the fact that they are working / at rest/ dismantled for cleaning purposes.

Just as in the case of other Engineering Policies, the Sum Insured under the CPM Policy also should be equal to the cost of replacement of the machinery equipment by new machinery equipment of the same kind and capacity.

  • Make, Model & Serial no. & Manufacturing year
  • Details of risk location like terrain, UG works
  • Details of project where equipment are to be used
  • Last 5 years premium Vs claim history for equipment

Just as in the case of other Engineering Policies, the Sum Insured under the CPM Policy also should be equal to the cost of replacement of the machinery equipment by new machinery equipment of the same kind and capacity.

Yes, if the Sum Insured is increased during the currency of the policy. Short period scale of rates shall apply to increased amounts.

Yes. With additional premium cover.

At Finoxo Solutions, we specialize in providing tailored insurance solutions that cater to both commercial and individual needs. With a commitment to excellence and innovation, we ensure our clients receive comprehensive coverage and unmatched service for their peace of mind.

Address

B-407, Decora 9 Square, Nr. Nana Mava Chowk,RAJKOT

+91 90333 30444

info@finoxo.in

Quick Links
About Us Commercial Insurance Individual Insurance Awards Blogs Contact Us Review Us
© www.finoxo.in, All Right Reserved.