Contractors Plant and Machinery Insurance

Why is Contractors Plant and Machinery Insurance Required?

Construction is a world of constant challenges, where risks hide around every corner. From machinery malfunctions to unforeseen accidents, the potential for disruption is always present on busy job sites.

These incidents can bring projects to a grinding halt, causing not just financial strain but also disrupting timelines and damaging reputations. This is where Contractors Plant and Machinery (CPM) Insurance becomes indispensable. By providing protection against equipment damage, theft, and breakdowns, CPM Insurance acts as a safety net for construction companies, ensuring that projects can weather any storm.

Who Should Purchase Contractor Plant and Machinery Insurance Policy?

Contractors' Plant and Machinery Insurance, also known as Construction Equipment Insurance, is essential for various entities involved in construction projects, including:

• Construction Companies
• Contractors
• Equipment rental companies
• Project Owners
• Subcontractors

Salient Features of Contractors Plant and Machinery Insurance

Following are the key features of the Contractors plant and machinery insurance coverage:

• Contractor plant and machinery insurance is designed to cover loss or damage to various plants and machinery used on project sites.
• There is an option to cover only selected machinery under the policy.
• Insurance is provided based on the current replacement value.
• Policy purchase is available only after successful commissioning of the machinery.

What is Covered Under CPM Insurance?

The Contractors Plant and Machinery policy (CPM Insurance) covers the following:

• CPM Policy covers the physical loss or damage to the insured’s plant and machinery at project sites.
• Comprehensive protection against physical damage by any cause unless explicitly excluded.
• Complete coverage for partial or total damage to equipment or machinery.
• Coverage extends to all insured items, whether in operation, at rest, or undergoing dismantling for cleaning and overhauling.

What is Not Covered Under Contractor Plant and Machinery Insurance?

The common exclusions under contractors' plant and machinery insurance coverage (CPM Insurance) are as follows:

• Damage due to terrorism risk
• Loss or damage due to electrical or mechanical breakdown/failure
• Pre-existing faults & damages
• Loss or damage due to the explosion of any boiler or pressure vessel
• The excess, as stated in the schedule
• Damage for which the supplier or manufacturer is responsible
• Any kind of Transit Risk

Loss/damage to insured plant and machinery due to:

• Willful act/negligence of the insured
• Contractual liability, manufacturer's guarantee
• Consequential loss or liability of any kind or description

Contractors Plant and Machinery Insurance Coverage: Add-Ons

On payment of an additional premium, you can opt for the following add-ons under the contractors plant and machinery policy (CPM insurance):

• Express freight
• Terrorism
• Earthquake
• Additional customs duty
• Escalation of cost
• Dismantling and shifting to a new location
• Owners surrounding policy
• Clearance and removal of debris
• Third-Party Liability
• Air freight

Contractors Plant and Machinery Insurance: Claim Process

To initiate the claims process for your CPM insurance policy, adhere to the following steps:

1. Inform Your Relationship Manager: Quickly notify your designated relationship manager about the incident.
2. Fill and Submit Claim Form: Complete the provided claim form and submit it to your account manager to officially commence the claims process.
3. Assessment and Claim Registration: Your submitted details will promptly be forwarded to the insurance company for thorough
4. Engagement of Surveyor: Following claim initiation, the insurer will engage a qualified surveyor to evaluate the situation and ascertain the extent of the damages.
5. Documentation Provision: After the survey, the appointed surveyor will guide you through the necessary documentation process. Ensure timely submission of all required documents as instructed.
6. Approval of Claim and Funds Release: Upon completion of the evaluation process and approval of your claim, the insurance company will expeditiously release the claim funds to facilitate the prompt resolution of the incident.

Note: The insurer will carefully review the terms and conditions outlined in your policy to determine eligibility for coverage regarding the reported incident. Consequently, the decision to accept or reject the claim will be at the discretion of the insurer.

Why Should You Purchase Contractors Plant & Machinery Insurance through Policybazaar for Business?

• Expert Advice: Our team of business risk consultants offers personalized guidance designed specifically for your individual needs and preferences.
• 365-Day Claims Assistance: Available every day of the year, our team of claims specialists ensures efficient and smooth processing of your claims, ensuring constant support throughout.
• Dedicated Relationship Manager: Upon enrollment, you'll be assigned a dedicated relationship manager who provides continuous support and guidance to safeguard your business against potential risks.
• Favourable Quotes Leveraging our vast network of insurer alliances, we provide competitive quotes from multiple insurers, ensuring you receive the most favourable rates in the market without compromising on service excellence.