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Plant & Equipment Insurance

Heavy machinery isn't cheap, and neither is replacing it without insurance

Excavators, forklifts, cranes, and loaders, if your business depends on expensive equipment, you can’t afford downtime or uninsured losses. Plant & Equipment Insurance protects your machinery from damage, theft, and breakdown.

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What could go wrong

(and why you need this)

Heavy machinery keeps your business operating. One excavator rollover, one forklift fire, one major breakdown, and you’re facing both the replacement cost and the income loss while you’re down. Equipment of this expense requires weeks or months to replace, and every day without it means lost contracts and revenue that cannot be recovered.

Scenario 1

The excavator rollover

Your $250,000* excavator rolls on unstable ground. The operator escapes with minor injuries, but the machine is totalled. Hire costs while you wait for replacement: $8,000*/week. Lead time for new excavator: 12 weeks. Lost contracts due to no equipment: $65,000*.

What Plant & Equipment Insurance covers

Full replacement value of destroyed excavator, hire costs for temporary replacement, salvage and removal, and some policies cover lost income during replacement period.

Scenario 2

The forklift fire

Your $80,000* forklift catches fire in your warehouse due to an electrical fault. The forklift is destroyed, causing $45,000* in damage to your warehouse. You can’t operate without a forklift. Urgent replacement hire: $1,200*/week.

What Plant & Equipment Insurance covers

Forklift replacement, damage to the warehouse (if you have appropriate cover), hire costs, and fire brigade charges.

Scenario 3

The stolen loader

Your $180,000* skid steer loader was stolen from a worksite overnight. GPS tracking shows it heading interstate. Police recovered it 6 weeks later with $35,000* in damage. You’ve hired replacement equipment the entire time: $18,000*.

What Plant & Equipment Insurance covers

Theft and recovery costs, damage repairs, hire costs during the theft period, and GPS tracking fees.

Scenario 4

The hydraulic failure

Your $320,000* crane suffers a catastrophic hydraulic pump failure mid-job. Repairs: $55,000*. Parts take 8 weeks to arrive from overseas. You’re contractually obligated to complete the project. Crane hire to finish: $42,000*. The client is claiming delays.

What Plant & Equipment Insurance covers

Mechanical breakdown repairs (if covered), expedited freight for parts, hire costs, and legal costs if the client claims for delays.

What this actually covers

Plant & Equipment Insurance

Plant & Equipment Insurance covers heavy machinery and specialised equipment:

Mobile plant:

  • Excavators, backhoes, and diggers
  • Loaders (skid steer, wheel, track)
  • Forklifts and telehandlers
  • Cranes (mobile and tower)
  • Graders and dozers
  • Dump trucks and articulated haulers
  • Compactors and rollers

Fixed plant:

  • Manufacturing machinery
  • Production line equipment
  • Processing equipment
  • Pumps and generators
  • Conveyor systems
  • Industrial ovens and kilns

Specialised equipment:

  • Aerial work platforms (scissor lifts, boom lifts, cherry pickers)
  • Concrete pumps and mixers
  • Piling rigs and drilling equipment
  • Crushing and screening equipment
  • Materials handling equipment

Events covered:

  • Accidental damage and collision
  • Fire, explosion, and lightning
  • Theft and attempted theft
  • Vandalism and malicious damage
  • Storm, flood, and natural disasters
  • Rollover and overturn
  • Operator error

Additional cover typically included:

  • Attachments and accessories
  • Third-party liability (damage caused by your equipment)
  • Towing and recovery
  • Emergency repairs
  • Removal of debris

Optional extras

  • Mechanical and electrical breakdown
  • Hire costs following loss
  • Loss of income or revenue protection
  • Expedited freight for parts
  • Damage to underground services (cables, pipes)

What's typically not covered

  • Wear and tear or gradual deterioration
  • Maintenance and servicing costs
  • Overloading or improper use
  • Unlicensed or untrained operators
  • Existing damage or defects

When you need this

By founder stage

Start smart

Pre-launch to first year

You need this immediately when you:

  • Buy plant or equipment over $20,000
  • Finance equipment (lender requires insurance)
  • Hire out your equipment to others
  • Use equipment on client sites or public projects
  • Can’t afford to replace equipment with cash

Agreed value vs. market value:
Agreed value locks in the payout amount. Market value means the insurer determines the value at claim time (depreciation applies). Choose an agreed value for certainty.

Typical coverage

Each major item is listed separately with its own individual sum insured, and smaller items are grouped together as a fleet.

Scale strong

Growing and hiring

Your cover needs to increase when:

  • You’re adding more equipment to your fleet
  • You’re upgrading to newer, more expensive machinery
  • You’re using equipment for higher-risk work
  • You’re hiring equipment to other businesses
  • Equipment becomes essential to revenue (can’t operate without it)

Fleet policies

Multiple pieces of equipment under one policy for better pricing and easier administration.

Stay protected

Established and optimising

Review your cover annually or when:

  • Update agreed values (don’t underinsure)
  • Add new equipment immediately after purchase
  • Remove sold or scrapped items
  • Review breakdown cover for aging equipment
  • Check hire costs cover matches your actual hire rates
  • Consider revenue protection for critical equipment

Typical coverage

This is where things get custom, and you need to talk to the team at Pocket to evaluate your specific needs.

Common questions

Founders actually ask

Does my Business Insurance cover plant and equipment?

Basic business insurance may cover small equipment (under $10k-$20k), but major plant equipment requires specific coverage due to its high value and specialised risks. Check your business policy limits; they’re likely insufficient.