Contractors Plant and Machinery Insurance

Protect construction equipment and heavy machinery against accidental damage and operational risks.

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PRODUCT OVERVIEW

What is Contractor's Plant and Machinery Insurance?

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

Who Should Buy Contractors' Plant and Machinery Insurance?

Construction Companies

Businesses using heavy machinery and equipment across construction and infrastructure projects.

Contractors and Subcontractors

Contractors operating cranes, excavators, loaders, concrete mixers, and other project equipment.

Equipment Owners

Owners looking to protect high-value construction machinery against operational and accidental risks.

Equipment Rental Companies

Businesses renting plant and machinery equipment to contractors and project sites.

Project Owners and Developers

Developers and project owners with financial interest in construction equipment deployed on-site.

Financial Institutions

Banks and financial institutions financing or leasing construction machinery and equipment.

Protects High-Value Machinery

Helps businesses manage financial losses arising from damage to expensive construction equipment and machinery.

Reduces Project Disruptions

Minimises operational delays caused by machinery breakdowns or accidental site-related incidents.

Covers Repair & Replacement Costs

Provides coverage for repair or replacement expenses arising from accidental machinery damage.

Supports Business Continuity

Helps businesses recover faster from equipment-related losses and ongoing project disruptions.

Protects Machinery Across Sites

Coverage can be extended to machinery deployed across multiple project locations, subject to policy terms.

Manages Operational Risks

Reduces the financial impact of unexpected machinery losses during construction operations.

Road Construction Contractor

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.

EPC Metro Rail Project

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 Business

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 of CPM Insurance

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

Exclusions of CPM Insurance

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.

Terrorism Cover

Provides coverage for loss or damage to insured machinery caused by acts of terrorism, subject to policy terms.

Earthquake Cover

Covers loss or damage to insured plant and machinery resulting from earthquake-related events.

Third-Party Liability Cover

Protects against legal liability arising from accidental injury to third parties or damage to their property.

Air Freight Expenses

Covers additional air freight costs incurred for transporting replacement parts following an insured loss.

Express Freight Expenses

Reimburses extra expenses incurred for expedited transportation of machinery parts required for repairs.

Escalation of Replacement Costs

Provides coverage for increased replacement costs due to inflation or price fluctuations during the policy period.

Additional Customs Duty Cover

Covers additional customs duties payable on imported replacement machinery or parts after an insured loss.

Clearance and Debris Removal Expenses

Pays for the reasonable costs of clearing debris and removing damaged machinery from the site.

Dismantling and Shifting to a New Project Location

Covers expenses related to dismantling, transporting, and reinstalling insured machinery at a new project site.

Owner's Surrounding Property Damage Cover

Provides coverage for accidental damage to the owner's surrounding property caused by insured machinery operations.

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.

Construction plant and machinery at an industrial site

Multiple Insurer Options

Access quotes from leading IRDAI-approved insurers.

Tailored Coverage Solutions

Coverage options based on machinery type, project scale, and operational risks.

Dedicated Claims Assistance

End-to-end support during claim registration, documentation, and settlement.

Expert Insurance Guidance

Assistance from insurance experts to help businesses select suitable CPM coverage.

Support for Construction & Infrastructure Businesses

Solutions built for contractors, EPC companies, builders, and equipment owners.

CLAIMS

How to File a Contractor's Plant & Machinery Insurance Claim

Follow these steps to raise a Contractor's Plant & Machinery Insurance claim with assistance from Coverfox.

Immediate Claim Intimation

Notify the Coverfox support team at help@coverfox.com immediately after the incident to initiate the claim process without delay.

Claim Registration

Share important details such as the policy number, machinery information, incident description, date of loss, and project site location for claim registration.

Document Submission

Submit the required documents, including the policy copy, machinery invoices, photographs of damaged equipment, repair estimates, and FIR copy wherever applicable.

Surveyor Inspection

The insurer may appoint a surveyor to inspect the damaged machinery and assess the extent of physical damage, operational impact, and estimated loss value.

Claim Assessment & Settlement

After document verification and survey assessment, the insurer processes the claim settlement according to the policy terms, coverage scope, and applicable conditions.

Can old construction machinery be insured under Contractors Plant and Machinery Insurance?

Yes, insurers may provide coverage for used or older construction machinery based on equipment condition, maintenance history, and underwriting assessment.

Is Contractors Plant and Machinery Insurance available for short-term projects?

Yes, Contractors Plant and Machinery Insurance can be issued for project-specific durations depending on project timelines and insurer terms.

Does the premium increase for high-risk project locations?

Premiums may vary based on project location, machinery usage conditions, operational exposure, and associated construction risks.

Can multiple machines be insured under a single Contractors Plant and Machinery Insurance policy?

Yes, businesses can insure multiple construction machinery and equipment items under one Contractors Plant and Machinery Insurance policy.

What factors should businesses consider before buying Contractors Plant and Machinery Insurance?

Businesses should evaluate machinery value, project risk exposure, location, operational usage, coverage limits, and add-on requirements before purchasing the policy.

Can financed or leased machinery be insured under Contractors Plant and Machinery Insurance?

Yes, financed, leased, or hypothecated machinery can be insured based on policy terms and insurer guidelines.

Is depreciation considered during the Contractors Plant and Machinery Insurance claim settlement?

Claim settlement terms related to depreciation depend on policy wording, machinery age, and insurer conditions.

Can businesses customise Contractors Plant and Machinery Insurance coverage?

Yes, businesses can customise coverage through add-ons and policy extensions based on project and machinery requirements.

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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.