It doesn’t depend whether you have bought or have hired the earthmoving machinery and excavation equipment, both these need security from accidents. This assurance that these types of machinery are secure comes from the insurance. Yes, we are talking about plant and equipment insurance, this insurance will protect your expensive equipment with all types of accidents and damages. Insurance will not cover the damage that is done to the machinery but even to your business.
If you are investing in the business of expensive pieces of machinery like drilling machines, compressors, cranes and heavy-duty equipment, then you must take the insurance. Because the risks of damage to these equipment will always be high. The circumstances where the plant and equipment insurance can be useful to you are:
- When you want to replace the damaged part of your heavy-duty machinery like bulldozers etc
- If machinery got damaged while transferring them from one place to another, then this insurance can be useful.
- Sometimes while running these types of machinery, workers can get injured, then this insurance will cover the medical bills.
- In case of an accident, this insurance can cover the financial damage.
- If your plant equipment got damaged due to natural calamities, then this insurance can help you in a deal with the financial loss.
- Escalation risk or shipment charges and customs duty or vehicle clearance of these pieces of machinery are also covered under insurance.
Insurance can cover the entire value of the equipment at that time of the accident or any inconvenience. Even when you are taking these types of machinery on rent, you need to check if the insurance of these machinery is done or not. You never know when you can witness any damage or face loss and compensate for these losses instantly is not feasible by anyone because of their high cost. At that time, plant and equipment insurance will be useful to you and your business.
Who needs to take this insurance policy? Then the answer is simple individuals and contractors who are investing in the plant and equipment business need insurance. Having insurance will safeguard this expensive machinery from a financial perspective. If you have invested in the construction projects, then you also need to go for this insurance policy. What are the factors that must be considered while taking plant and equipment insurance? These factors are the type of equipment, its model, purpose of use and manufacturer along with the frequency of using them, type of project, the location where these machines will be used and possible risk factors. All these factors help the insurance agent to finalize the premium amount of the equipment insurance taken by you.
