Are you a civil contractor who has to deal with a lot of construction work on a regular basis? It takes a big number of laborer’s and expensive equipment. During the construction work process, damage and loss to the properties are frequently occurring issues that cannot be ignored. Engineering projects involve new challenges on every step that require unique solutions. The repair and replacement cost of construction and excavation equipment is so high that you cannot always cover the loss with existing capital. Therefore, an insurance policy becomes necessary to buy. It helps in minimizing your loss to an extent. Before buying any insurance policy, pay attention to some important points as we are mentioning below.
Things To Expect From A Plant And Equipment Insurance Agency
- The insurance company should have flexible options for customers to choose plant, machinery or equipment coverage instead of rigid policies.
- It should cover the current replacement value.
- External risks like burglary, riots and fire should also be included in the loss coverage of a plant and equipment insurance.
- Not just in working condition but machinery dismantled for cleaning or overhauling purposes should also be covered.
Entities To Whom This Insurance Is Beneficial
- Civil contractors who have hired equipment on rent for different types of construction projects.
- Actual owners of excavation and earthmoving machinery who are concerned about the depreciation and loss of their property.
- Finance institutions which made an investment in a particular construction project.
Factors Influencing Insurance Premium Amount
Plant and equipment insurance are customizable according to the requirement of a client or project. The insurance premium amount depends on numerous factors as mentioned below:-
- Brand and model of equipment
- Purpose of their use
- Type of equipment
- Risk factors associated such as geographic and climatic conditions
- Type of project
- Frequency of an equipment usage
On your first meeting, the insurance agent will make all assessments after examining every factor precisely. On the basis of your expectations and their assessments, A final premium amount is decided for a certain period of time. Some companies also provide policy extension options. You can include some other coverages such as shipment charges, custom duty, natural disasters, escalation risk and vandalization due to terrorist attack.
While investing in a plant and equipment insurance policy, always remember that there are some exceptional cases preventing the company from claims fulfilment. Here is a list of some common exceptional cases you need to know.
- If you are using machinery with pre-existing malfunctioning.
- Using machinery parts that are not recommended by the manufacturer.
- Using machinery without an adequate amount of lubricant and coolant.
- Electrical breakdown.
- If intentional negligence from a representative or operator is noticed.
If you are meeting all the terms and conditions, there is a simple process of claiming the insured amount. Just follow these steps:-
- Share the information of damage aur loss with the insurance company.
- Provide assistance to the surveyor during the evaluation of a claim.
- Submit all supporting documents including the claim form.
- On the basis of a report prepared by the surveyor, they initiate a certain amount as a claim or provide assistance regarding repair and replacement of equipment.
A policy comparison website can help you in finding renowned companies providing plant and equipment insurances. Make sure that the agent assigned for your assistance is capable of providing every mandatory information regarding terms and conditions in a simple language.