The Insurance Every Plant & Equipment Needs to Know About

Brief Summary: Plant & Equipment Insurance is designed to protect your business's valuable machinery and equipment against unforeseen and sudden physical loss or damage. This insurance is essential for businesses that rely heavily on their equipment for daily operations, such as construction, manufacturing, and agriculture.

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What is Typically Covered:

• Accidental Damage: Covers unexpected damage to your plant and equipment from accidents during operation, transit, loading, and unloading.

• Theft and Vandalism: Provides coverage for loss or damage due to theft or malicious damage.

• Breakdown: Protects against the costs of repairing or replacing your machinery if it breaks down, excluding wear and tear.

• Fire and Explosions: Covers damage caused by fire, lightning, explosion, and other similar perils.

• Natural Disasters: Protection against losses from events like earthquakes, floods, and storms (coverage may vary based on location and policy terms).

• Business Interruption: Compensation for loss of income resulting from equipment downtime due to a covered loss.

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What is Not Typically Covered:

• Wear and Tear: Gradual deterioration from normal use over time is not covered.

• Poor Maintenance: Losses resulting from inadequate maintenance or care of the equipment.

• Intentional Damage: Damage caused intentionally by the policyholder or their employees.

• Manufacturing Defects: Issues that are a result of inherent defects from the manufacturer.

• Electrical or Mechanical Breakdown: Some policies may exclude electrical or mechanical breakdown unless additional coverage is purchased.

• Overloading or Misuse: Damage resulting from overloading, incorrect operation, or improper use of the equipment.