Insurance Protection For Heavy Equipments

Heavy equipments are high value possessions that are used for heavy duty tasks, and although there’s only a small possibility of being robbed or stolen there are still many other risks that might happen to them which require insurance protection, afterall it involves a lot of money considering the high value of the equipments.

Almost every kind of heavy equipment is insurable, Things considered as heavy equipments that insurable are construction equipments, mining equipments like the equipments used in coal mine, iron ore mine, tin mine, stone mine, also container terminal equipments, etc. Example of the equipments are cranes, wheel loader, excavator, forklift, vibrator, dump truck, buldozer, etc.

There are couple of policy types available to cover heavy equipments, heavy equipment insurance (HE) and contractors’ plant and equipment (CPE). Each has its own characteristics and different types of terms & conditions in the policy.

Heavy equipment insurance is a taylor made insurance and very much depends on the standards set by the insurer. It also has different types of wordings in the policy, ‘named perils’ which explisitly mentions the risks that covered by the insurance, and ‘unnamed perils’ that can be considered as an all risk cover that doesn’t mention the details of what kind of risks are coverable. But still, the “keyword” is taylor made, the wordings are so much depend on the insurer, and could be different for diferent equipments or the same equipment in different time.

Many people more prefer to take contractors’ plant and equipment because it uses standard munich re-wordings which is used widely in insurance industry. That way, the coverage is certained and also it only has one type of coverage which is all risks. This type of policy sometimes also called contractor’s plant and machinary (CPM).

CPE nearly covers all damage risks or phycical loss that happen unexpectedly except for some risks which are stated in the exception, including the loss that happens during the operation of the equipment, at rest, and during overhauling. The risks covered include fire, lightning strike, explotion, plane crash, strike, riot, civil commotion, sabotage, hurricane, storm, flood, water caused damage, earthquake, volcanoe eruption, tsunami, land slide, ground movement, theft, robbery, negligence during operation, other accidents, etc.

Exceptions for the coverage include electrical and mechanical failure, boiler explotion, replacable parts like battery and filter, public vehicle, boat, airplane, damages caused by rob, risks during transit, worn-out, corrosion, damages caused by the nature of the equipment, war, terrorism, nuclear, radio active, deliberately act by the insured, damages during factory guarantee period, business interruption and liability.