Insurance coverage for contractors against breakdown of their machinery and equipment.
Almost all projects involve using various kinds of equipment and machinery. The type of equipment may change according to a project's nature, location, and stage in the process. Contractors’ Plant and Machinery Insurance, aka CPM insurance, is a type of all-risk insurance that covers a contractor's equipment being used at the site.
Some commonly used equipment for such projects are forklift trucks, bulldozers, compressors, drilling machines etc. These machines are susceptible to damage considering nature of the work and sites they’re used for and at. The failure of these machines could delay the completion of the current project and jeopardise the whole timeline.
The Contractor’s Plant and Equipment insurance policy saves the day in such circumstances. This policy provides coverage to the contract holder against any sudden, unexpected physical damage to or loss of their equipment.
The Contractor’s Plant & Machinery Insurance may be purchased by any of the following parties, individually or jointly:
Contractors are reliant on equipment and plant operations at any work site. Since these equipment and facilities need significant investments, physical loss or damage might result in substantial losses.
With a Contractor’s Plant and Machinery Insurance Policy, you can feel at ease knowing that their financial interest associated with the equipment is protected against loss or damage. So, without worrying about the equipment, you can focus more on what's important - managing and completing the project on time.
If not stated otherwise, Plant and Equipment Insurance protects a civil contractor's equipment from unexpected damage, loss or destruction by any external risk. Several of the risk factors are as follows:
The major inclusions of a plant and machinery insurance policy for contractors are as follows:
The major exclusions of a Plant and Machinery Insurance Policy for contractors are as follows:
Your CPM insurance prices depend upon the following:
Read the insurance's exclusions thoroughly in addition to the cost because they can vary from one policy to another. Evaluate the procedures needed in repairing or replacing a machine to determine whether you need any extensions.
Contractors benefit greatly from contractors plant and machinery insurance policies because their financial interests are protected from damage or loss. Hopefully, now you have a clear idea of what these insurance policies are and how they can benefit you in running your business smoothly. So, make an informed decision and grow your business with Policybazaar UAE.
Ans: Contractors Plant & Machinery Insurance financially covers the plant and machinery used in construction, engineering, or any other project from any unforeseen loss or damage. The policy covers contractor-owned or rental plants and machinery from all types of risk and losses.
Ans: If you are a contractor with your own or rented plant and machinery, you can get Contractors Plant & Machinery Insurance. With this policy, contractors can avail of important financial protection that they need against hefty financial losses related to their plants and equipment.
Ans: You can avail of the following benefits from the Contractors Plant & Machinery Insurance -
Ans: The premium for a Contractors Plant & Machinery Insurance plan is determined by considering factors like the nature and type of machinery, the sum insured value, risk assessment, percentage of the insured value of equipment, and other related terms.
Ans: The Contractor Plant & Machinery Insurance plans generally don’t cover risks and losses related to regular wear and tear, mechanical errors, over-time deterioration, electrical breakdowns, wars, terrorism attacks, and nuclear threats.
Ans: Contractors Plant & Machinery Insurance usually covers any type of accidental damage or loss of plant and machinery, burglary, losses due to breakdown, machinery failure, transit risks, and errors on the part of operators.