Why Is It Required?

Every civil or building contractor is highly dependent on the machinery or plant for work. Some of the contractors hire these machinery or plants whereas some have their own. However, any damage or loss to any machinery involved in construction can result in a heavy loss as these machines represent a huge amount of investment.

Having plant and machinery investment keeps the contractor relaxed as his/her machinery are protected against any loss or damage. Therefore, building contractors are always recommended to opt for plant and machinery insurance. Some of the benefits that contractor gets with this insurance policy are:

• Under this plan, most of the insurance providers broadly cover damage or loss incurred to the mobile constriction equipment like compressors, crane, bulldozer, excavators, etc. because of an accident arising due to external perils.
• A contractor’s plant & machinery insurance plan remains operative for all the items insured, whether these items are at work, being dismantled for overhauling or cleaning purposes, or are at rest.
• Provides complete coverage for both partial and total damage to machinery or equipment.
• Insurance is offered as per the current replacement value of the machinery.

Criteria

1. Owner of the plant and machines
2. Banks and financial institutions investing in the project
3. The contractor or the user of the construction machinery