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.
What could go wrong
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.
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
When you need this
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.
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)
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
Common questions
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.
Can I insure hired or leased equipment?
If you're hiring equipment short-term, the hire company usually provides insurance (included in the hire rate). If you're leasing long-term, you're often required to insure it yourself. Check your lease agreement.
What if my equipment breaks down mid-job?
Standard plant insurance covers accidental damage, not mechanical breakdown. For breakdown cover, you must add the "machinery breakdown" extension (extra premium). This covers sudden mechanical or electrical failure.
Does this cover underground services I accidentally damage?
Only if you add the "damage to underground services" extension. Standard policies exclude damage to cables, pipes, or services you hit while excavating. This extension is essential for earthmoving contractors.
What if someone steals attachments but leaves the machine?
Attachments are typically covered as part of the main equipment item; however, please verify policy limits. High-value attachments (over $10k-$20k) may need to be specifically listed and insured separately.
Can I get coverage for equipment used overseas?
Australian policies typically cover equipment used in Australia only. For overseas projects, you need international or project-specific cover with geographical extensions.
What else might I need?
Plant & Equipment Insurance covers your machinery, but not everything:
If employees operate your equipment:
You legally need Workers' Compensation if they're injured while operating plant.
If you're a contractor working on client sites:
Add Public & Products Liability to cover damage your equipment causes to third-party property.
If equipment is transported on trucks:
Your Commercial Motor Insurance covers the trucks, Plant Insurance covers the equipment being transported.
If you hire equipment to others:
You need enhanced Public Liability and potentially hire-specific cover for equipment going out of your control.