Why A Plant Policy?
Plant insurance forms a substantial part of any engineering insurers’ portfolio, despite the fact that a substantial amount of plant is being insured as “special type vehicles” in terms of a Commercial vehicle insurance policy in the motor insurance market.
The definition of construction plant extends much wider than mobile plant only, and includes such items as scaffolding, site accommodation, compressors, generators, hand tools and electrical hand tools, all of which requires its own underwriting requirements. In fact, we believe that the list of insured interest is endless and is becoming longer as new construction technology requires innovative thoughts to create plant to assist such changing construction processes. Some of the new applications such as Drones will need more suitable insurance in another segment of the insurance industry, in this instance aviation insurance.
Plant claims are normally settled on market value with the exception of “Agreed Value” settlements. Insurers however still endeavour to settle agreed value claims as close as possible to indemnity of the insured to avoid the insured making a profit out of his loss.
The policy’s own damage section indemnifies the Insured for any loss or damage to the plant whilst the plant is at rest at the Insured’s premises or elsewhere, whilst in transit under own power or otherwise or whilst acting as a tool of trade. The tool of trade cover is very important and in fact a large portion of our claims emanates from the negligent acts of the operator resulting in damage to the plant. A good example will be the collapse of a boom following the lifting of a load with an overextended boom.
Not only do we insure plant belonging to the Insured but quite often also plant hired in. Many a plant hiring contract stipulates that the hirer is not only responsible for the plant but also for the continuing hire charges in the event that the plant hired in is lost or damaged. The material damage and consequential loss indemnities fall within the scope of the Plant All Risks Policy.
Previously we mentioned damage to the plant whilst acting as a tool of trade. The consequences of defective plant, workmanship and material can be huge. A good example will be the collapsing of the scaffolding on the N1, not only causing injury to motorists but delaying the project substantially. The plant policy can be extended, not only to cover liabilities arising out of the ownership and operation of plant on site but also the road risk liabilities.
Plant insurance forms an integral part of any Contractor’ insurance portfolio and due to the capital intensive nature of mobile plant it is essential the correct cover is obtained from a reputable underwriter. Consort Technical Underwriting Managers offers comprehensive Plant insurance at affordable terms in Africa south of the Sahara and the Indian Ocean Islands. Insurance is our business and paying claims the name of the game.