Thank you for sharing your details with us!

What is Contractors’ Plant and Machinery Insurance?

What does Contractors’ Plant and Machinery Insurance Cover?

A Contractor’s Plant and Machinery Insurance offers the coverage mentioned below:

Loss/damage to the contractors’ construction equipment

The policy covers the expense incurred due to loss or damage of equipment used at the construction site because of accidents arising from perils like fire, riots, strikes, malicious damage, earthquake, flood, storm etc

Damage caused at work, rest or during care

If the insured property gets damaged at work or rest or due to maintenance, the policy will cover it.

What’s not Covered?

Digit’s Contractor’s Plant and Machinery insurance policy does not cover losses due to the following:


If the machinery gets damaged because of the insured’s negligence or their representative, the policy will not cover the expenses.


If the equipment incurs any damage due to an act of terrorism, it won’t be covered.

War and nuclear perils

Damage caused to pieces of equipments due to factors like war and atomic hazards will not be covered under the insurance policy.

Lack of use and for undergoing test

Damage or deterioration of machinery due to lack of use and undergoing tests is not covered under the policy.

Pre–existing damages

Fault and damage to pieces of equipments which were pre-existing before the purchase of the policy will not be covered. 

Mechanical or electrical breakdown

Failure of machinery due to electrical or mechanical breakdown not be covered under Contractor’s Plant and Machinery insurance policy.

An explosion of pressure vessel/boiler

Any damage incurred by the equipment due to the explosion of a pressure vessel is not covered under the policy.

Features of Contractor's Plant and Machinery Insurance policy

How is the premium calculated for Contractors’ Plant and Machinery Insurance?

The payable premium for the policy depends on several factors. They are -

Sum Insured

The amount insured in the policy impacts the premium that is payable by the insured. The higher the sum insured, the higher the premium and vice versa.

Type of machinery

The premium also depends on the type of machinery involved. Since equipments used at a construction site are usually expensive, the sum insured is generally high. By paying a higher premium the policyholder saves a lot of money if there is any loss or damage to machinery


The associated risks at the project site also impact the policy’s premium. If the stacks are high, the chance of accidents are higher, resulting in huge losses that the insurer has to bear.


The location of the worksite or where the equipment is kept impacts the payable premium.

Use of equipment

If the machinery is used for some purpose that involves a high risk of damage, then the machinery is prone to it. So, the use of the equipment impacts the premium of the policy.

Who should buy the policy?

The policy of Contractors’ Plant and Machinery insurance can be availed by those mentioned below:

Equipment Owners

The policy can be brought by the owners of the machinery. It helps them cover the expenses when the equipments are damaged or stolen.

Investors in the project

Banks and financial institutions which have invested in the project where the machinery has been used can also buy the policy.

Users of the machinery

Contractors tasked with finishing the project and the people using the machinery at the project site can also buy the insurance policy.

How to choose the right Contractors’ Plant and Machinery Insurance policy?

FAQs about Contractors’ Plant and Machinery Insurance in India