Contractor’s Plant and Machinery Insurance

Contractor’s Plant & Machinery Insurance. It is an important all risks policy covering principally movable plant and machinery owned or leased by the principals or contractors and used on site for various construction work, repairs & maintenance jobs or even regular site work.

Who can take the Insurance?

Owners of Machinery, Contractors, Banks and Financial Institutions

What does Contractor’s Plant and Machinery Insurance cover?

This is an ‘All Risk’ policy covering sudden and unforeseen physical damage to machinery insured by any cause or peril not specifically excluded under the policy.

What does Contractor’s Plant and Machinery Insurance not cover?

  • Electrical / mechanical breakdown
  • Transit risks from site to site (separate marine cover is required)
  • Vehicles designed and licensed for general road
  • Hull and machinery of waterborne vessel / crafts
  • Freezing of coolant or other fluids, defective lubrication, replaceable parts
  • Plant / machinery working underground (unless specifically endorsed)
  • Total and partial immersion in tidal waters
  • Equipments undergoing testing
  • Pre-existing defects at inception
  • Loss or damage due to explosion of boiler / pressure vessel
  • Cost of preparing drawings /patterns /core boxes
  • Cost of alteration, improvement, overhauls, modifications, additions, material changes
  • Consequential Loss
  • Breakage / abrasion of wire or stands of rope / slings of crane

What are the Add-on covers under Contractor’s Plant and Machinery Insurance?

  • Owner’s surrounding policy
  • Clearance and removal of debris
  • Additional custom duty
  • Air freight
  • Express freight
  • Dismantling
  • Escalation
  • Earthquake
  • Third Party Cover
  • Floater cover
  • Terrorism

What are the key benefits of Contractor’s Plant and Machinery Insurance?

Construction Plant and Equipment often constitute a considerable part of a building or erection
contractor’s investment. Moreover, heavy duty and movable machinery often operate in hostile terrain; are exposed to extremes of weather and natural perils; besides being exposed to a number of other hazards depending upon the nature of construction, erection work or usage. Salient features of this policy are:

  • It covers various types of machinery, plant and equipment, both electrical and mechanical against unforeseen or sudden physical damage of the insured machinery due to any cause not excluded.
  • There is an option to cover only selected machinery under the policy.
  • It provides coverage for machinery at various locations by specifically mentioning the equipments at each location.
  • The Policy can be taken by the owner, contractor or by the financiers of the machinery.


These are indicative details of the Policy. Exact terms, conditions, coverages and exclusions are as per the wordings of Contractors Plant & Machinery Insurance.