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Protect construction equipment and heavy machinery against accidental damage and operational risks.
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PRODUCT OVERVIEW
Contractors' Plant and Machinery Insurance (CPM Insurance) provides financial protection for construction machinery and equipment against sudden physical loss or damage during project operations. The policy covers heavy equipment such as excavators, cranes, loaders, compressors, bulldozers, and concrete mixers used across construction and infrastructure sites.
CPM insurance helps contractors, builders, and project owners manage financial risks arising from accidents, fire, theft, natural calamities, and equipment breakdowns. The coverage helps minimise project delays, operational disruptions, and high equipment repair or replacement costs. CPM Insurance policies in India are offered by IRDAI-registered general insurance companies and are structured based on project risk exposure, machinery type, operational conditions, and underwriting assessment.
WHO SHOULD BUY
Businesses using heavy machinery and equipment across construction and infrastructure projects.
Contractors operating cranes, excavators, loaders, concrete mixers, and other project equipment.
Owners looking to protect high-value construction machinery against operational and accidental risks.
Businesses renting plant and machinery equipment to contractors and project sites.
Developers and project owners with financial interest in construction equipment deployed on-site.
Banks and financial institutions financing or leasing construction machinery and equipment.
WHY CPM INSURANCE
Helps businesses manage financial losses arising from damage to expensive construction equipment and machinery.
Minimises operational delays caused by machinery breakdowns or accidental site-related incidents.
Provides coverage for repair or replacement expenses arising from accidental machinery damage.
Helps businesses recover faster from equipment-related losses and ongoing project disruptions.
Coverage can be extended to machinery deployed across multiple project locations, subject to policy terms.
Reduces the financial impact of unexpected machinery losses during construction operations.
USE CASES
A road construction contractor operating hydraulic excavators, concrete batching plants, and loaders across multiple project sites can purchase CPM Insurance to manage losses arising from accidental overturning, flooding, fire incidents, or machinery impact damage.
An EPC contractor working on metro rail infrastructure projects can insure crawler cranes and tunnel equipment against operational risks, natural calamities, and theft exposure at temporary project locations.
Equipment rental businesses leasing tower cranes and compressors to third-party contractors can use CPM Insurance to reduce financial risks linked to accidental site damage and repair liabilities.
INCLUSIONS & EXCLUSIONS
Accidental physical loss or damage to insured machinery
Partial or total damage to construction equipment
Fire, lightning, explosion, and external impact damage
Floods, storms, cyclones, and natural calamity-related losses
Theft, burglary, and malicious damage
Damage while machinery is operational, idle, or under maintenance
Coverage during dismantling, cleaning, overhauling, and re-erection within the project site
Protection for cranes, excavators, loaders, bulldozers, compressors, and other construction equipment
Electrical or mechanical breakdowns without external damage
Pre-existing faults or damages
Wear and tear, rust, corrosion, or gradual deterioration
Damage during transit from one location to another
Losses due to defective lubrication, lack of coolant, or oil
Damage to replaceable parts such as drills, cutters, knives, and moulds
Machinery used beyond its intended operational purpose
Damage caused by the willful negligence of the insured
Consequential or indirect financial losses
Losses covered under the manufacturer's warranty or supplier's responsibility
Underground machinery-related damages, unless specifically agreed with the insurer
War, nuclear risks, radioactive contamination, and contractual liabilities
Note: Coverage, inclusions, exclusions, and add-ons may vary depending on the insurer, machinery type, and policy wording. Please refer to the policy documents for detailed terms and conditions.
ADD-ONS
Provides coverage for loss or damage to insured machinery caused by acts of terrorism, subject to policy terms.
Covers loss or damage to insured plant and machinery resulting from earthquake-related events.
Protects against legal liability arising from accidental injury to third parties or damage to their property.
Covers additional air freight costs incurred for transporting replacement parts following an insured loss.
Reimburses extra expenses incurred for expedited transportation of machinery parts required for repairs.
Provides coverage for increased replacement costs due to inflation or price fluctuations during the policy period.
Covers additional customs duties payable on imported replacement machinery or parts after an insured loss.
Pays for the reasonable costs of clearing debris and removing damaged machinery from the site.
Covers expenses related to dismantling, transporting, and reinstalling insured machinery at a new project site.
Provides coverage for accidental damage to the owner's surrounding property caused by insured machinery operations.
POLICY GUIDANCE
Selecting the right sum insured helps avoid underinsurance and ensures adequate claim payouts. Use this checklist to arrive at the correct insured value.
SUM INSURED CHECKLIST
The sum insured should reflect the current market value of purchasing a similar new machine or equipment.
Consider related costs such as freight, transportation, customs duty, taxes, installation, and commissioning charges while calculating the total insured value.
The sum insured should be calculated separately for every insured piece of equipment or machinery item based on its replacement cost.
Selecting a lower sum insured may reduce claim payouts and increase financial exposure during equipment damage or loss.
Review machinery values periodically to account for inflation, equipment upgrades, and rising replacement costs.
DOCUMENTS REQUIRED
COVERFOX EDGE
Access quotes from leading IRDAI-approved insurers.
Coverage options based on machinery type, project scale, and operational risks.
End-to-end support during claim registration, documentation, and settlement.
Assistance from insurance experts to help businesses select suitable CPM coverage.
Solutions built for contractors, EPC companies, builders, and equipment owners.
CLAIMS
Follow these steps to raise a Contractor's Plant & Machinery Insurance claim with assistance from Coverfox.
Notify the Coverfox support team at help@coverfox.com immediately after the incident to initiate the claim process without delay.
Share important details such as the policy number, machinery information, incident description, date of loss, and project site location for claim registration.
Submit the required documents, including the policy copy, machinery invoices, photographs of damaged equipment, repair estimates, and FIR copy wherever applicable.
The insurer may appoint a surveyor to inspect the damaged machinery and assess the extent of physical damage, operational impact, and estimated loss value.
After document verification and survey assessment, the insurer processes the claim settlement according to the policy terms, coverage scope, and applicable conditions.
Yes, insurers may provide coverage for used or older construction machinery based on equipment condition, maintenance history, and underwriting assessment.
Yes, Contractors Plant and Machinery Insurance can be issued for project-specific durations depending on project timelines and insurer terms.
Premiums may vary based on project location, machinery usage conditions, operational exposure, and associated construction risks.
Yes, businesses can insure multiple construction machinery and equipment items under one Contractors Plant and Machinery Insurance policy.
Businesses should evaluate machinery value, project risk exposure, location, operational usage, coverage limits, and add-on requirements before purchasing the policy.
Yes, financed, leased, or hypothecated machinery can be insured based on policy terms and insurer guidelines.
Claim settlement terms related to depreciation depend on policy wording, machinery age, and insurer conditions.
Yes, businesses can customise coverage through add-ons and policy extensions based on project and machinery requirements.
Disclaimer
Contractors' Plant and Machinery Insurance coverage, inclusions, exclusions, add-ons, premium rates, and claim settlement terms may vary depending on the insurer and policy selected. Customers are advised to read the policy wording carefully to understand the scope of coverage, exclusions, and applicable conditions before purchasing the policy.
