Industrial Equipment Insurance

Contractors' Plant and Machinery Insurance (CPM)

The purpose of this type of insurance is to compensate for losses in case of breakdown of plant and machinery, as well as to compensate for losses incurred by third parties.

As a rule, industrial equipment is used in severe conditions and, therefore, is exposed to breakdown. In the event of insured event occurrence involving the insured equipment, it may result in serious financial costs, including suspension of the company's business.

Contractor's Plant and Machinery Insurance (CPM) will primarily provide insurance for construction equipment against unexpected risks associated with breakdowns. 

Contractor's Plant and Machinery Insurance (CPM) policy provides protection for construction equipment, which includes:

• cranes of any type;

•  drilling, earthmoving machinery;

• bulldozers;

• compressors; 

• pavers;

•  tunnel boring machines;

• scaffolding, formwork, lifts;

•  other auxiliary equipment.

Risks included in the insurance coverage:

• an unintentional error of operating personnel during the operation or maintenance of the insured machinery;

• rupture of cables or chains leading to falling of the insured objects and their damage resulting from a collision with other objects, and other mechanical damage.

• overload, overheating, vibration, fault, jamming, blockage of the mechanism by foreign objects, pressure change inside the mechanism, impact of centrifugal force and fatigue of the material;

• water hammer or lack of fluid in steam boilers and similar apparatuses; 

• an explosion of steam boilers, internal combustion engines and other power sources;

• defects in materials, design, workmanship or installation (assembly) of equipment;

• failure of instrumentation, security systems.

Contractor's Plant and Machinery Insurance Terms

Contractor's plant and machinery can be insured:

• for the period of work at a particular facility;

• against all risks, regardless of the site of operation (full insurance).