Contractors Plant and Machinery Insurance
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Contractors Plant and Machinery Insurance
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Starting At ₹4,500*/year
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Get ₹1 Crore Cover,
Starting At ₹4,500*/year
Contractors Plant and Machinery Insurance
Protects contractors when construction equipment gets damaged
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Contractors Plant and Machinery Insurance Made Easy
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Contractor’s Plant and Machinery Insurance, or CPM Insurance, protects your construction equipment from damage or loss. It covers machines like excavators, cranes, concrete mixers, and backhoe loaders that are essential on project sites. These machines are valuable and often face risks such as fire, theft, floods, or accidents.
See More...Construction machines are expensive and used in many ways on site—whether working, resting, being cleaned, or moved. If they get damaged, repairs or delays can cost a lot. CPM Insurance helps cover these unexpected costs and protects your cash flow.
Here is why it matters:
Covers Equipment in Various Conditions
Whether the machine is in use, under maintenance, or being moved, the policy offers protection.
Reduces Repair and Replacement Costs
It covers the high expenses that come with fixing or replacing damaged machinery.
Helps Prevent Project Delays
Repairs happen faster, so your work stays on schedule.
Supports Extra Costs When Agreed
It can include charges for quick transport or overtime repair work.
Lets You Work With Peace of Mind
You know your machines are protected, so you can focus on finishing the job.
Contractors Plant and Machinery Insurance is useful for any business that owns or uses construction machines and equipment. It helps protect valuable assets that are essential to completing projects on time.
- Construction companies that operate machines like excavators, cranes, and loaders
- Contractors/ subcontractors working on road building, bridges, and other infrastructure projects
- Equipment rental companies that lease out plant and machinery to builders and contractors
- Engineering firms that use heavy equipment on site
- Any business involved in civil works, earthmoving, or large-scale construction
If your work depends on machines to get the job done, this insurance is important. It protects your equipment and helps keep your projects moving without unexpected financial setbacks.
A Contractors Plant and Machinery Insurance Policy offers key features that help protect your machines and reduce business interruptions. It covers sudden and unforeseen damage while machines are working, idle, or being moved on site. The policy includes repair or replacement costs, even during cleaning or overhauling. If a machine cannot be repaired, it offers total loss settlement. With prior agreement, it may also cover extra expenses like express freight or overtime charges.
Contractors Plant and Machinery Insurance covers sudden and unforeseen physical damage to your equipment. The policy includes:
Damage While Working or Resting
Your machines are covered whether they are in use or not.
Damage During Cleaning or Shifting
Coverage applies while equipment is being cleaned, overhauled, dismantled, or moved within the same premises.
Damage During Re-Erection
Machines remain covered when being re-installed after commissioning.
Repair and Replacement Costs
The policy pays for repair or replacement, including dismantling and re-erection costs.
Freight and Customs Duty
If included in the sum insured, these costs are covered.
Provisional Repairs
Temporary repairs are covered if they are part of the final work and do not raise the total cost.
Total Loss Settlement
If a machine cannot be repaired, the insurer pays for its total loss.
Additional Costs
Charges like express freight or overtime may be covered if agreed in advance.
While the policy offers wide protection, it does not cover:
Internal Breakdowns Without External Damage
Mechanical or electrical failures inside the machine with no outside damage.
Wear and Tear or Poor Maintenance
Rust, corrosion, ageing, or damage due to regular use or lack of care.
Damage During Testing or Misuse
Damage caused by testing or using machines beyond their limits.
Underground Equipment
Machines working underground, unless they are tunnelling equipment.
Road-Licensed Machines
Vehicles licensed for public roads, unless used only on site.
Damage During Transit
Any loss while moving equipment from one site to another.
Boiler or Engine Explosion
Fire or blasts from boilers or engines under pressure.
Late Discovery of Theft or Damage
Losses noticed only during routine checks or stock reviews.
War, Riots, or Terrorism
Damage caused by war, rebellion, or similar events.
Nuclear Risks
Losses from radiation or nuclear-related incidents.
Known Defects or Negligence
Damage that existed before the policy or was caused intentionally.
Consequential Losses
Indirect losses like project delays, downtime, or lost income.
Provisional Repairs
Covers temporary repair costs to keep machines running until full repairs are done.
Express Freight Charges
Helps with the extra cost of fast delivery for urgently needed parts.
Overtime or Holiday Repair Costs
Covers additional labour charges if repairs must happen after hours or during holidays.
Freight, Customs, Dismantling, and Re-Erection
Pays for moving damaged equipment, customs duty (if included), and reinstalling machinery during repair or replacement.
You can make your CPM Insurance more useful by choosing a few helpful add-ons. These cover extra costs that might come up during repairs:
Notify Us
As soon as the loss or damage happens, contact us within 2 days. Share all relevant details and documents, such as photos or reports. We will make sure the process starts without any delays.
Surveyor Visit
Once notified, a surveyor will visit your site within 1–2 days to assess the damage. Please avoid moving any damaged items until the surveyor arrives. After that, we will take care of the next steps.
Submit Required Documents
We will guide you through submitting the necessary documents, including the claim form, incident notes, and financial records. Our team will ensure everything is submitted correctly and on time.
Claim Assessment & Approval
Once the documents are submitted, the surveyor will evaluate the claim and provide a settlement amount based on your policy terms. After approval, the insurer will finalise the settlement.
Payment Processing & Claim Closure
Once the settlement is approved, payment will be processed and issued to you or your beneficiary. After payment, the claim will be closed. If any further issues arise, we will be here to support you until they are fully resolved.
Crane Damaged During Site Shifting
In 2023, a mid-sized construction company in Pune was shifting a crane within its project site when the equipment accidentally hit a retaining wall and toppled. The damage was significant, making the crane inoperable. The company filed a claim under its CPM Insurance Policy. The insurer paid ₹12 lakhs for dismantling, transporting, and repairing the crane. The claim helped the project stay on track without major delays or financial stress.
Excavator Damaged During Cleaning
In 2022, a contractor in Indore was cleaning an excavator when a hydraulic line failed, causing internal damage to the machine. The breakdown led to a complete halt in excavation work. The claim under CPM Insurance covered ₹7 lakhs for parts replacement and ₹1.5 lakhs for express freight and overtime labour. This allowed the contractor to resume work quickly without affecting the project timeline.
Bulldozer Overturned During Routine Use
In 2021, a bulldozer working at a road construction site near Kochi overturned while levelling uneven ground. The accident caused heavy damage to the undercarriage and control system. The business raised a CPM Insurance claim. The insurer covered ₹9 lakhs for repairs, including dismantling and re-erection. The timely claim settlement helped avoid penalties due to project delay.
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Common Questions Answered
Common Questions Answered
Have questions or need to speak to an expert?
CPM stands for Contractors Plant and Machinery.
Contractors Plant and Machinery (CPM) Insurance is a type of business insurance that protects construction equipment against sudden and accidental physical damage. It covers machines like excavators, cranes, loaders, and other tools used at construction sites. This insurance is helpful for businesses that rely on machinery to complete projects.
The policy covers sudden and unforeseen physical damage to your machines, whether they are working, resting, being cleaned, shifted, or reinstalled. It includes costs for repairs, replacement, dismantling, and re-erection.
Freight and customs duty are covered if included in the sum insured. Temporary repairs and total loss are also included. Extra charges like express freight or overtime may be covered if agreed in advance.
The policy does not cover internal breakdowns without visible damage, wear and tear, rust, or poor maintenance. It excludes damage from testing, misuse, or while moving machines between sites.
Machines used on public roads, underground equipment (except tunnelling), and known defects are not covered. Losses from war, riots, terrorism, radiation, or indirect losses like delays and downtime are also excluded.
This policy protects your business from unexpected machine damage, reduces repair and replacement expenses, and helps you complete projects without delay or financial loss.
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