What Plant All Risk insurance is
Plant All Risk insurance covers specified items of contractors’ plant against accidental physical loss or damage. As with other all-risks wording, the starting point is that accidental loss or damage is covered unless the policy excludes it. In practice the policy schedule lists each machine, its value and the conditions that apply.
Typical events discussed include fire, collision, overturning, accidental damage on site, theft subject to security conditions, and damage in transit or during loading where those are included. Mechanical and electrical breakdown, and wear and tear, are generally treated differently from accidental damage, so ask what is included before assuming a breakdown is covered.
This page covers the product in general. Where the machines are hired from someone else, the relevant page is hired-in plant insurance. If you own a mixed portfolio, see owned plant insurance.
Who may need Plant All Risk insurance
- Earthmoving and civil contractors who own excavators, TLBs, dozers, graders, rollers and tipper trucks used mainly on site.
- Road and paving contractors with specialised machines such as pavers, milling machines and compaction equipment.
- Plant hire businesses whose income depends on a fleet of machines that spend much of their time at other people’s sites.
- Subcontractors who bring their own machines to a main contractor’s site and are expected to insure them.
- Contractors with finance on plant, where the financier requires the machine to be insured for a stated value and its interest noted.
What may be insured, subject to terms
- Self-propelled plant
- Excavators, front-end loaders, backhoe loaders, bulldozers, graders, rollers and similar machines, listed individually with their values.
- Trucks used mainly off-road
- Dump trucks and tippers working in quarries or on site. Vehicles that travel on public roads may need motor or fleet cover as well, and the boundary between the two should be agreed in writing.
- Lifting equipment
- Cranes and similar equipment may attract extra requirements, such as inspection certificates and operator competence.
- Attachments and accessories
- Buckets, hydraulic breakers, rippers and quick hitches are often forgotten. List them if they carry significant value.
- Static and trailer-mounted plant
- Generators, compressors, crushers, screens, pumps and similar equipment.
- Transit and loading
- Cover while plant is moved on low-beds, and while it is loaded and unloaded, is not automatic. Ask whether it is included and for what limit.
Important limitations and questions to discuss
- Valuation and sum insured
- The value you insure plant for decides what is payable and can trigger underinsurance penalties. The valuation basis (replacement, market or agreed value) is explained below.
- Theft and security conditions
- Policies often attach conditions to theft cover, such as tracking devices, immobilisers, lock-up storage, fencing or guarding. Failing a condition can affect a claim.
- Breakdown, wear and tear
- Mechanical and electrical failure, wear and tear and gradual deterioration are typically excluded unless a breakdown extension has been agreed.
- Operator competence
- Some policies expect operators to hold relevant competence or licences. Loss caused by an untrained operator may be treated differently.
- Special working conditions
- Underground work, quarries, working in or near water, blasting and demolition can lead to exclusions, higher excesses or separate terms. Tell the insurer at the outset.
- Territory and excess
- Policies state where cover applies, so crossing a border may need separate arrangements. Excesses are often a percentage of the loss with a minimum, so ask how each type of loss is treated.
Choosing how plant is valued
The valuation basis is one of the most important decisions in a plant policy. The names differ between insurers, so read the definition in the wording rather than relying on the label.
| Basis | How it generally works | Points to consider |
|---|---|---|
| Replacement value | The cost of replacing the machine with a new equivalent at the time of loss, subject to the policy terms. | Premiums are normally higher because the value insured is higher. Check whether older machines are treated differently. |
| Market value | The value of the machine immediately before the loss, reflecting age and condition. | Can be lower than the replacement cost. Evidence of condition and hours helps. |
| Agreed value | A value for each machine agreed with the insurer when cover starts. | Reduces argument at claim stage, but values need regular review as machines age or are bought and sold. |
Wording varies between insurers. Confirm the basis in the policy schedule.
Information we usually need for a quotation
The core of a plant quotation is a plant schedule. If you do not have one yet, a simple spreadsheet is enough to start.
- For each machine: make, model, year, serial or chassis number, and the value you want insured.
- Whether the item is owned, financed, leased or hired, and the name of any financier.
- Where the plant normally works and is stored, including the province and type of site.
- Security measures: tracking, immobilisers, fencing, lock-up yards and guarding.
- Operators: who drives the machines and what competence evidence is available.
- Any special conditions: underground, quarry, near water, blasting or demolition.
- Whether you need transit and loading cover and how often plant is moved.
- Your claims history and the details of any existing plant policy.
You do not need everything on day one. A short description of the work is enough to start, and the quote form only asks for the details relevant to your enquiry.
Frequently asked questions
Does Plant All Risk insurance cover mechanical breakdown?
Not as a rule. Breakdown, wear and tear and gradual deterioration are generally excluded from all-risks plant wording. A breakdown extension may be available for some machines; ask what it covers and what it excludes.
What if my machine is on finance?
The financier usually requires the machine to be insured for a stated value and wants its interest noted on the policy. Give us the finance details so the schedule can reflect them.
Is hired-in plant covered under my own plant policy?
Not automatically. Hired-in equipment is usually dealt with through the hire agreement and a hired-in plant arrangement. See hired-in plant insurance.
How much does plant insurance cost?
There is no standard rate. Plant insurance cost factors explains what insurers consider, including valuation, usage, location, security and claims record.
Related cover
- Owned plantInsurance structured around a contractor’s own plant portfolio, from a single schedule to values, finance interests and changes during the year.
- Hired-in plantCover aimed at your responsibility for hired equipment under the hire agreement, including damage and loss while in your care.
- Tools and equipmentCover for portable tools and smaller equipment such as generators, compactors, breakers and survey instruments.
- Construction fleetVehicle cover for construction businesses: bakkies, tippers, low-beds and water tankers, and the boundary with plant cover.
Related guides
- What affects the cost of plant insuranceWhat affects plant insurance cost for contractors: valuation, equipment type and age, usage, location, security, operators, excess and claims record. No premium rates.
- Hired-in plant: insurance responsibilities explainedWhy contractors should review hire terms and insurance for hired-in plant: who bears risk, damage waivers, wet and dry hire, evidence of insurance and charges.
- Documents needed for a construction insurance quoteA practical guide to the documents and information needed for a construction insurance quote: project, contract, plant, business and claims information.
Industries this applies to
- Earthmoving contractorsPlant, transit, underground services and ground stability for bulk earthworks and site preparation.
- Plant hire businessesOwnership, hire terms, damage waivers and machinery use for businesses that hire out plant.
- Civil contractorsContract works, liability, plant and guarantees for roads, stormwater, sewers, bridges and bulk earthworks.