Imagine this – you’ve just started your dream business and invested a significant amount of money in top-of-the-line equipment. Suddenly, one of your machines experiences equipment failure or gets damaged due to an accident. Without proper insurance coverage, you could end up with a hefty bill to repair or replace the equipment. It could also lead to a delay in your business and further drain on your finances.
Avoid unnecessary costs from equipment failure by implementing safety guidelines to prevent accidents and performing regular maintenance to keep your equipment in good condition. For greater security for both you and your business, get Plant & Equipment Insurance.
In this article, we’ll discuss the following questions:
- What is Plant & Equipment Insurance?
- How to get started?
- What needs to be covered?
- How do you choose the right insurance provider?
- Do you need help with insurance?
What is Plant & Equipment insurance?
Plant & Equipment Insurance is designed to cover physical assets used in the operation of a business, such as vehicles and heavy machinery like cranes and forklifts. Although commonly associated with the construction industry, it can be helpful for different types of businesses and equipment.
- Agriculture – balers, harvesters, tractors
- Earthmoving and Excavation – bulldozers, drillers, excavators
- Logging and Forestry – forwarders, mulchers, trucks
- Transport and Logistics – conveyors, forklifts, trucks
- Waste and Recycling Management – compactors, crushers, shredders
Think about these risks and make a list of any others you think are relevant to your business. This is an important step in making sure your risks as a venue are managed and will help inform the kind of insurance you need. Sitting down with an experienced Insurance Advisor can make this process more efficient and effective.
How to get started?
To insure your equipment, you must have all the necessary documents ready to present. Remember to provide accurate details to the insurance provider so they can give you an accurate quote. This information may include, but is not limited to:
- Type of equipment
- Price or value
- Age (when it was first used and when it was purchased)
- Repairs and modifications
- History of claims
When considering equipment insurance, prioritise which assets you want to insure based on their importance and value to your operations, then set up a budget accordingly. Expect heavy machinery to take the bulk of your budget. It’s also important to consider any specialised maintenance required to keep your equipment running smoothly.
What needs to be covered?
The next step is to assess the risks associated with your equipment and evaluate the likelihood of these risks occurring. Then check with insurance providers if their policy covers these potential risks:
- Accidental Damage – This covers your equipment’s repair or replacement costs in case of accidental damage caused by exposure to elements like fire, flood, and natural disasters. Damages due to human error could also be included. If you’re unsure, it’s best to confirm with your insurer.
- Theft and Vandalism – Unfortunately, theft and vandalism are real business risks. Surveillance cameras and alarm systems are good preventative measures, but they can’t guarantee absolute protection. In an emergency, Plant & Equipment Insurance can step in to cover the loss or damage caused by malicious acts.
- Equipment breakdown – Even the most reliable and well-oiled machinery can have a bad day. Equipment breakdown coverage can provide financial support for repairs or replacement for unexpected equipment failure, which is crucial during peak production periods.
How do you choose the right insurance provider?
Once you have a clear idea of your insurance needs, you can start researching which insurance provider would be a good fit. Each insurance provider has their own sets of policies and coverage. Compare them and take note of the following:
- Do they cover repairs or replacements?
- Do they cover both?
- Are there coverage limits or exclusions?
- Are there premiums or policy deductibles?
- Additional coverage options?
- What is their usual claims process and timeline?
- What is the general feedback from customer reviews?
- Is the insurance provider in good standing financially or reputation-wise?
When shopping for services, especially one as important as insurance, request quotes from multiple providers. Don’t be shy about sending emails, and as long as you have questions, keep asking them. Carefully view the fine print and take time to weigh your options so you can make an informed decision.
You can learn more about how to properly review your insurance here.
Do you need help with insurance?
Accidents can happen no matter how many precautions you take, and equipment failure due to age or constant use is inevitable. Plant & Equipment Insurance acts as a safety net that keeps you protected from unexpected costs that can be incurred. It ultimately helps minimise negative financial impact, allowing you to recover and resume operations swiftly.
Yes, going through different providers and policies to find the right one is hardly exciting. You’ll have to read tons of paperwork and put in the hours to ensure everything is covered. But there’s no need to stress because you don’t have to shop alone. We’re here to help. At East West Insurance Brokers, we’ll connect you to the top insurance providers in Australia and help you identify what best suits your business needs. Let’s work together to get you covered. Request a free consultation today!
