Understanding Plant and Equipment Insurance Policy and How To Choose

Have you just started your contractor business and invested substantially in heavy equipment of construction? Video if you discover your next step should be safeguarding all the assets from any potential damage. During the construction and installation work, plant and machinery remain prone to loss and damage. These are expensive investments and it’s very difficult to cover the loss if any mishap occurs. The most effective step of safeguarding your assets is getting a plant and equipment insurance policy. These policies are specifically designed to protect the interests of contractors from all perspectives. The policy also covers the equipment that you are leasing. After getting construction equipment on lease, it becomes your legal responsibility to keep it safe from breakdown and other potential losses. While choosing an insurance policy agency, don’t forget to check the following factors.

What to expect in a plant and equipment insurance policy

  1. The policy must be covering all possible mishaps including accidental damage, fire damage riots damage and burglary etc. 
  2. There should be options for customization in the policy. Make sure that the company is giving options of selecting equipment or plant machinery that you want to insure rather than covering the entire infrastructure in their package. 
  3. The plant and equipment need cleaning and overhauling occasionally. Is your insurance policy covering the machinery when it is at rest? Whether near Mussoorie is at work or in the resting position after dismantling, the insurance should cover it in all conditions.
  4. The policy should be covering the current replacement value of equipment or plant you have already insured. 
  5. There must be a clear chart of partial and total damage cover policies rather than a lump-sum estimate. 

How to choose a credible plant and equipment insurance company?

 

  • Find a reference

It would be great if you manage to get someone’s reference for such kind of insurance. People who are already insured can give their unbiased reviews. Explore your contacts list to find people sharing similar businesses. 

  • Check there reviews and ratings

If local reviews are not available, try finding the opinion of previous customers on websites like Glassdoor and Yelp. These are the credible rating websites where star ratings and reviews of previous customers can help a lot in making a decision. 

  • No hidden terms or conditions

clarify with the insurance agent in advance that there should be no hidden terms and conditions in the policy. Sometimes, we get to know later that a particular kind of mishap was not covered or there is an issue with claims. Always avoid such kinds of insurance policies.

  • Compare before choosing

Nowadays, many policy comparison websites are available where you can enter the amount to check all possible options. Insurance companies provide attractive offers and discounts in this competitive era. Compare the premium amount and aspects of coverage through these websites to finalize a reliable plant and equipment insurance company. 

Never compromise with the insured amount and its coverage aspects while buying a policy for your valuable assets. Don’t consider it as a formality. 

Also, read this: commercial truck insurance in US