Plant and equipment policies look simple until you read the exclusions. The heading says the machine is covered; the detail decides which kinds of damage the insurer will actually pay for.
Own Damage: the Core of the Policy
Plant and equipment cover typically responds to sudden and accidental physical damage to the machine — a rollover, a fire, an impact, storm, or theft. Cover generally applies while the machine is working, idle on site, in transit and under repair, though each of those can be qualified.
What Is Usually Excluded
- Wear and tear, gradual deterioration and rust. Insurance covers events, not maintenance.
- Mechanical or electrical breakdown, unless breakdown cover is specifically added.
- Damage to tyres, tracks and undercarriage other than by an insured event.
- Overloading or use beyond the manufacturer’s specification.
- Unlicensed or unticketed operators, on many wordings.
- Damage while unattended and unsecured, particularly for theft.
Own Damage Is Not Liability
The most expensive plant claims are rarely the machine. Striking a service, dropping a load, or damaging the structure you are working on all fall to liability cover, not the plant section. Machines that lift or work near other people need the liability limit considered separately.
Sums Insured: Replacement or Market?
Some policies settle at market value, some at agreed value, some at replacement for newer machines. Each behaves differently after a total loss, and the difference on a five-year-old machine can be significant. Review values annually — plant values have moved a great deal in recent years.
The Schedule Is the Policy
Plant cover follows a schedule of items. If a machine, attachment or item of small plant is not on it, the claim is a conversation you do not want to have. Keep serial numbers, year of manufacture and current values, and update the schedule when you buy, sell or attach.
Extensions Worth Asking About
- Hired-in plant, for machines you take on hire.
- Continuing hire charges, where you must keep paying for a machine that is out of action.
- Removal of debris and recovery costs, which after a rollover can be substantial.
- Additional cost of reinstatement, for machines that cannot be replaced quickly.
- Transit, including loading and unloading.
Registered Plant: the Motor and Plant Boundary
Machines that are registered — telehandlers, graders, backhoes, some loaders — can be insured under a motor policy, a plant policy, or partly both. The placement decides two things: whether the machine is covered while travelling on a public road, and which liability section responds when it causes damage.
The gap to watch is a machine insured as plant, covered on site, that drives half a kilometre down a public road between two parts of a job. Some plant wordings exclude road use entirely. This is worth listing item by item rather than assuming a rule.
Theft: What Actually Reduces It
- GPS tracking with an active subscription, not a unit installed and forgotten.
- Immobilisers and keyed-alike controls — many machines still share generic keys.
- Secured compounds with lighting and, where practical, monitored cameras.
- Parking machines to block each other in overnight on open sites.
- Removing attachments of high value at the end of the day.
Insurers price these. A schedule that documents them is a schedule that quotes better.
Reading the Basis of Settlement
Three phrases decide what a total loss pays: market value assesses the machine at the time of loss, agreed value fixes the figure at inception, and replacement pays for a new equivalent, usually only for machines under a certain age. A schedule can carry different bases for different items, which is fine as long as you know which is which before you need it.
Common Questions
Is registered plant covered under motor or plant?
It depends on the machine and how it is used. Registered mobile plant can sit either side, and the wrong placement creates gaps on public roads. It is worth checking each item.
Does the policy cover breakdown?
Not usually, unless machinery breakdown is added. Read our guide to machinery breakdown cover.
What about small tools?
Usually a separate section with its own limit, often subject to a per-item cap.
Talk It Through
If your plant schedule has not been reviewed in a while, it is worth a look. Request a quote or call 1300 983 940.
General advice only. This article does not take your objectives, financial situation or needs into account. Consider the relevant PDS and Target Market Determination before deciding on a policy.