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Commercial Insurance

Contractor’s Plant & Machinery Insurance Policy

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Key Features

Reliable Protection for Your Essential Equipment

Coverage Highlights

Key benefits of this plan
  • Suitable for

Ideal for construction firms, equipment rental companies, individual equipment owners, and financial institutions

  • Assets covered

Covers Contractor's Plant & Machinery like cranes, excavators, bulldozers, loaders, compressors, generators, concrete mixers, & road rollers

  • All-Round Protection

Provides coverage to construction machinery & equipment against damage, fire, theft, and disasters, ensuring smooth project progression

Inclusions

What's covered?
  • Material Damage

Covers physical loss or damage to machinery and equipment due to accidents, fire, theft, natural disasters, and other unforeseen events

  • Third-Party Liability

Provides coverage for legal liabilities arising from third-party property damage or bodily injury caused by the insured machinery during its operation

  • Transit Cover

Protects machinery and equipment while being transported to and from the construction site

  • Breakdown Coverage

Covers the cost of repairs or replacement due to mechanical or electrical breakdowns of the insured machinery

  • Hired-In Plant

Provides coverage for machinery and equipment that is hired or leased from third parties

  • Note

Please read policy wording for detailed Inclusions

Exclusions

What's not covered?
  • Consumables

Loss of or damage to consumable items, replaceable parts and attachments

  • Vehicle plying on road

Damage to vehicles designed and licensed for general road use – unless used exclusively on construction sites

  • Electrical or Mechanical breakdown

Consequential damage from electrical or mechanical breakdowns is excluded, unless, caused by an accident resulting in external damage

  • Inventory Shortages

Losses discovered during inventory checks without evidence of an insured peril

  • Wear and Tear

Damage due to normal wear and tear, gradual deterioration, or mechanical or electrical breakdown.

  • Cessation of Work

Losses arising from the cessation of work, whether total or partial

  • Note

Please read policy wording for detailed exclusions

Comprehensive Protection with Contractor’s Plant and Machinery Insurance 

Contractor’s Plant and Machinery Insurance is a specialized policy designed to protect construction equipment against a wide range of risks. Whether the machinery is owned, leased or rented, this insurance ensures comprehensive coverage for valuable equipment such as bulldozers, cranes, excavators, concrete mixers and more. It safeguards against unforeseen events like fire, theft, accidental damage and natural disasters, all of which can severely impact project timelines and finances.
As on-site risks grow, having a machinery insurance policy becomes essential for avoiding unexpected losses and ensuring smooth project execution. A well-structured policy not only provides peace of mind but also helps contractors maintain operational efficiency and financial stability.
Choosing the right heavy machinery policy means evaluating your project’s unique needs and selecting coverage options and add-ons that offer the best protection. A flexible plan ensures that your business is always prepared, no matter what comes your way.

What is Contractors’ Plant & Machinery Insurance? 

Contractor’s Plant & Machinery Insurance plays a vital role in safeguarding high-value machinery used in demanding construction environments. Unlike standard equipment policies, it specifically caters to the dynamic risks faced at infrastructure project sites, where machinery is constantly exposed to rough handling and unpredictable conditions. The policy covers a broad range of assets—from loaders and generators to compressors and road rollers—ensuring they're protected even when in transit or during operation.

This insurance goes beyond just covering damage; it supports continuity by minimizing financial strain from unexpected repairs or replacements. For businesses managing multiple job sites or frequently relocating machinery, this machinery policy offers the flexibility and assurance they need. In an industry where delays can lead to significant financial setbacks, having a Contractor’s Plant & Machinery Insurance policy helps maintain project momentum and reinforces long-term business resilience.

Why is Contractor’s Plant & Machinery Insurance Required? 

Modern construction relies heavily on specialized machinery, and any unexpected breakdown or damage can disrupt timelines and inflate project costs. Contractors’ Plant & Machinery Insurance helps businesses stay protected against such risks by covering a wide range of unforeseen incidents, including natural calamities, mechanical failures and even malicious damage. With projects often operating on tight deadlines and budgets, even a minor disruption can snowball into a major financial setback.
This insurance ensures that equipment is swiftly repaired or replaced, minimizing downtime and preserving productivity. In addition, it often includes provisions to cover third-party liabilities, protecting the contractor from legal or compensation claims due to machinery-related incidents on-site. As construction sites become increasingly equipment-driven, safeguarding these vital assets is essential. A reliable plant and machinery insurance policy offers not just coverage—but confidence to build without worry.

Who Should Purchase This Policy? 

Whether you own, lease, finance, or rent out construction equipment, Contractor Plant and Machinery Insurance is a must-have policy. It offers financial protection against operational risks, equipment damage, and liability claims—making it valuable for a wide spectrum of stakeholders across the construction and infrastructure ecosystem. If your business or role involves the use of costly machinery on project sites, this insurance ensures continuity, compliance, and peace of mind.

 

Stakeholder

Why Do They Need An Insurance?

Construction Companies

To protect owned or rented machinery across multiple project sites

Real Estate Developers

To safeguard equipment investments used in large-scale building projects.

Civil Contractors

For coverage against damage or loss during on-site operations

Equipment Rental Firms

To protect leased-out machinery and minimize liability from third-party usage.

Individual Equipment Owners

To ensure protection from unexpected repair/replacement costs.

Financial Institutions

To secure financed machinery and reduce asset risk in case of damage or theft.

 

 

Importance of Contractors Plant & Machinery Insurae H2

The construction sector thrives on precision, timelines, and uninterrupted operations—all of which depend heavily on the reliability of on-site machinery. However, heavy equipment like cranes, loaders, and compressors are constantly exposed to unpredictable risks, from mechanical failures and operational accidents to extreme weather and theft. Contractors Plant & Machinery Insurance serves as a crucial safety net, absorbing the financial shock of repair or replacement and minimizing downtime.

This not only protects capital investment but also strengthens a company’s ability to meet project deadlines without disruption.
For contractors and developers, the policy also instils trust among clients and partners by ensuring that risks are proactively managed. Furthermore, many contracts mandate such insurance as part of compliance, making it a practical as well as a strategic necessity. In an industry where margins are tight and delays can be costly, this coverage offers the assurance needed to operate with confidence and consistency.

Benefits You Deserve

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All Risk Cover

Covers all risk in a single policy unless specifically excluded

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Broad Coverage

Coverage provided in its widest form for Contractors & related stakeholders

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Tailor-made Covers

Can be customized to cover interest of various stakeholders

Key Features of the Policy

Contractor’s Plant and Machinery Insurance offers extensive, all-risk coverage tailored to the realities of construction sites. Whether your equipment is owned, leased, or rented, the policy provides protection against unexpected events like theft, fire, or mechanical failure. From equipment in operation to idle or in transit, coverage extends to ensure minimal disruptions. With third-party liability protection and customizable policy features, this insurance is designed to suit the unique needs of contractors and developers. Quick claims processing further enhances operational continuity and business confidence.

Feature

Description

Coverage

Damage, theft, fire, natural disasters

Equipment Type

Cranes, bulldozers, mixers, rollers, generators

Operational Status

Covers active, idle, or in-transit machinery

Liability Protection

Covers third-party injury/damage during operation

Policy Customization

Add-ons and sum insured as per client need



Download Policy Document

Get instant access to your policy details with a single click.

Contractors Plant and Machinery Insurance Coverage: Add-Ons 

While the base machinery policy offers extensive protection, projects often come with unique operational needs. That’s where add-ons play a crucial role. By customizing your coverage with relevant extensions, you can reduce unexpected expenses and ensure smoother claims processing. These optional covers address specific risks, such as expedited repairs, nearby property damage, or increased operational costs—helping you stay on track without financial strain.

Popular Add-Ons Include: 

Debris Removal Cover – Covers the cost of clearing debris after an insured accident

Express Freight Charges – Pays for urgent shipping of parts to speed up repairs

Owner’s Surrounding Property Damage – Covers accidental damage to nearby property

Additional Custom Duty – Covers extra import duty on replaced items

Overtime & Night Work Cover – Compensates for repairs done outside regular hours

Eligibility Criteria for Availing the Policy 

Contractors Plant and Machinery Insurance can be availed by any individual or entity that owns, leases, or operates construction equipment. Eligible applicants include builders, contractors, infrastructure developers, and equipment rental firms. The machinery must be in operational condition and used solely for construction or project-related purposes. Accurate disclosure of machinery details—such as type, age, usage, and deployment location—is essential during policy application. This ensures appropriate coverage and smooth claim processing. The machinery policy is designed to support stakeholders who rely on heavy machinery to maintain timelines, reduce risks, and protect investments at work sites.

Documents Required for Policy Application 

To apply for a Contractors Plant and Machinery Insurance policy, applicants must submit the Proposal Form to ensure accurate coverage along with KYC documents such as PAN, Aadhaar, or company registration proof. A detailed list of machinery with specifications and serial numbers is required, along with purchase invoices or lease agreements as proof of ownership or usage rights. Site details, including the equipment’s operating location, must also be shared. If there is any previous insurance coverage, those policy documents should be provided to help assess risk history and continuity of coverage

Why Choose Bajaj Allianz General Insurance for Contractors Plant & Machinery Insurance? H2

Bajaj Allianz General Insurance stands out as a trusted insurance partner for the construction industry, offering comprehensive and customizable Contractors Plant & Machinery Insurance plans. With a proven track record of fast and fair claim settlements, the company ensures minimal downtime and maximum support when you need it most. Its transparent processes, robust risk assessment, and expert guidance help businesses make informed decisions.
Bajaj Allianz General Insurance provides extensive coverage options, tailored add-ons, and flexible policy terms to suit the scale and nature of your projects—whether you're a small contractor or a large infrastructure developer.

Their easy digital policy issuance and customer-first approach add to the convenience. With nationwide presence and dedicated support teams, Bajaj Allianz General Insurance ensures your machinery—and your business—are protected at every step. For those seeking a reliable machinery insurance partner that understands construction risk, Bajaj Allianz General Insurance offers not just a policy, but complete peace of mind.

Trusted Risk Advisor

Mobile Self Risk Assessment

PRIME Inspection app helps to evaluate quality of your property (Shop, Office, Plant or Others) having SI upto INR 50 crs. It is simple to navigate having multiple Q & A designed for client

Instant Generation of Risk Report

It helps Provide Risk Recommendations, Risk Quality Rating (RQR), Peer Comparison & GAP Analysis for the client

Step-by-Step Guide

To help you navigate your insurance journey

How to Buy

  • 0

    Visit the Bajaj Allianz General Insurance website

  • 1

    Fill in the lead generation form with accurate details

  • 2

    Get quote, make payment and receive the policy documents

How to Renew

  • 0

    Contact the Policy Issuing Office

  • 1

    Review expiring policy and share necessary details

  • 2

    Receive renewal quote

  • 3

    Make renewal payment

  • 4

    Receive the renewed policy documents via email

How to Claim

  • 0

    Contact us through our customer service touchpoints

  • 1

    Submit the claim form along with the necessary documents

  • 2

    Provide details of the incident and any supporting evidence

  • 3

    Cooperate with the claims investigation process

  • 4

    Receive the claim settlement as per the policy terms

Know More

  • 0

    For any further queries, please reach out to us

  • 1

    Toll Free : For Sales :1800-209-0144

  • 2

    Email ID: bagichelp@bajajallianz.co.in

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What Our Customers Say

Hassle-Free Policy Issuance

I recently purchased an Engineering Insurance policy from Bajaj Allianz for my construction business. The entire process was seamless, and the documentation was minimal.

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Rohit Mehta

Mumbai

4.7

10th Dec 2024

Comprehensive Coverage

The policy covers everything from contractor risks to equipment breakdowns. This is exactly what my business needed to stay protected from unexpected damages.

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Sandeep Yadav

Delhi

5.0

11th Jul 2023

Excellent Customer Support

I had a lot of queries before purchasing the policy, and the customer support team patiently explained every detail. Their guidance made it easy for me to choose the right plan.

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Karthik Iyer

Chennai

5.0

25th Sep 2024

Quick and Transparent Claims

My firm suffered damage to some expensive machinery, and Bajaj Allianz settled my claim in record time. The process was smooth, with no hidden conditions.

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Vikram Rajput

Ahmedabad

4.6

17th Aug 2024

Ideal for Contractors

As a contractor, I needed insurance that covers accidental damages at the project site. This policy gives me peace of mind, knowing my business is secure.

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Manish Verma

Pune

5.0

26th Jul 2024

Great for Infrastructure Projects

I work in infrastructure development, and this insurance has been a lifesaver. It provides extensive coverage for machinery, third-party liabilities, and worksite accidents."

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Preeti Nair

Bengaluru

4.8

18th Apr 2024

Covers Third-Party Liability

What impressed me the most is that this policy also includes third-party liability, which is crucial in my line of work. This helps prevent financial losses due to unexpected mishaps.

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Arvind Gupta

Lucknow

5.0

10th Jan 2024

FAQ's

Are there any specific exclusions in the policy?

Yes, exclusions include normal wear and tear, inventory shortages, damage to road-licensed vehicles, cessation of work, and mechanical or electrical breakdowns—unless caused by external accidental damage. It’s important to review the policy document for detailed terms and conditions.

Can leased or hired equipment be covered under this policy?

Yes, the policy covers both owned and hired-in equipment. It’s essential to declare all hired machinery details—such as type, value, and usage—accurately at the time of policy issuance to ensure adequate and uninterrupted coverage.

How is the premium for the policy determined?

The premium is calculated based on factors like the type, age, and value of the machinery, duration of coverage, project risk profile, and selected add-ons. Equipment usage, location, and past claims history may also influence the final premium amount.

How does this policy differ from standard equipment insurance?

The insurance specifically covers construction equipment used on project sites, including while in operation or idle. Standard equipment insurance may not offer such on-site or project-specific coverage, especially for heavy-duty or mobile equipment exposed to higher risks.

Can the policy be customized as per specific requirements?

Yes, the policy can be tailored with add-ons and coverage limits based on your project needs, type of machinery, risk exposure, and operational conditions, ensuring you get optimal protection for both owned and leased construction equipment.

Is there any geographical limitation for the coverage?

Coverage is generally limited to the geographical location specified in the policy—typically within the construction site or project area in India. It does not extend to equipment usage outside the insured location or country unless specifically included.

Is theft covered in the CPM insurance policy?

Yes, theft is covered under the policy, provided it occurs within the insured premises and meets policy conditions. Proper security measures and documentation are required at the time of claim.

Is fire covered under the Policy?

Yes, damages due to fire, explosion, lightning and similar perils is covered under the policy, ensuring your machinery is protected against unexpected fire-related incidents on the project site.

What is a Contractor’s Plant and Machinery Insurance Premium Calculator?

It’s a digital tool that estimates your policy premium based on details like machinery type, value, location, coverage duration, and add-ons. It helps you understand your financial outlay before purchasing the policy.

What information do I need to share to issue the policy?

You will need to provide machinery details (make, model, value, year of manufacture), project site information, operational usage, ownership status, and any past claims history to initiate and issue the policy.

What is a Contractor All Risk Insurance?

The Contractor All Risk (CAR) insurance covers damages to a construction site, materials, and equipment during a project. It also includes third-party liability for accidental damage or injury caused at the site.

What is Erection All Risk insurance?

Erection All Risk (EAR) insurance covers risks involved in installing and testing machinery, plants, and equipment. It protects against accidental damages, including fire, theft, and breakdowns.

What is material damage under engineering insurance policy?

Under this, the company agrees with the Insured that if, during the policy period, the insured property (excluding packing materials) is lost, damaged, or destroyed by any cause not specifically excluded, requiring repair or replacement, the company will cover the loss up to the insured amount. It also covers debris removal up to the policy limits.

What is the reinstatement of the sum insured under engineering policy?

Reinstatement of the sum Insured means that after a loss or damage, the insurance coverage remains in force for the insured amount. The insured must pay a pro-rata additional premium on the full claim amount from the date of loss until the policy expires, ensuring continued protection without reducing the original sum insured during the policy peri

What is liability coverage under engineering insurance?

Liability coverage under engineering insurance indemnifies the insured against legal liability for accidental damage to third-party property, excluding property used in construction. It also covers liability for injuries to third parties, excluding employees or family members. It also covers litigation costs.

What is electronic equipment insurance?

Electronic equipment insurance protects businesses from losses due to accidental damage, fire, theft, or short circuits affecting electronic devices like computers, servers, medical equipment, and industrial electronics.

How can I choose the right engineering insurance policy?

Assess business needs, project risks, equipment value, and coverage options. Compare policies from different insurers, check coverage limits, exclusions, and premium costs, and seek expert advice to select the best policy that aligns with your requirements.

What is the claim process under engineering insurance?

For claim approval, the insurer appoints a surveyor within 72 hours of claim intimation to assess the loss. Within 7 days, the insurer or surveyor informs the claimant about the documents. The claim is processed based on the surveyor’s findings and policy terms

Is there a waiting period for claims?

Most engineering insurance policies do not have a waiting period for accidental damages. However, certain coverages, such as loss of profit due to machinery breakdown, may have a waiting period before claims can be made.

What is the basis of loss settlement under engineering insurance?

In the event of a loss or damage, settlement is based on repair costs to restore the property to its prior condition, deducting salvage. If the property is a total loss, settlement is based on its actual value before damage minus salvage. Total loss rules apply if repair costs equal or exceed the pre-damage value.

What documents are required to file a claim for engineering insurance?

Policy details, loss reports, and damage assessment reports are some of the common documents required to file a claim under an engineering insurance.

How long does it take to process claim requests?

The claim processing time for your claim request can differ from one insurer to another. We try to resolve your claim request as soon as possible.

Do I need to renew engineering insurance?

Engineering insurance may not always be mandatory but is often required for large construction projects, industrial plants, and businesses using heavy machinery. Many clients and regulatory bodies mandate coverage to protect against unforeseen losses.

Can engineering insurance be transferred to another company?

Engineering insurance is generally non-transferable. A new policy may be required if a project is transferred to a new contractor. However, in some cases, with insurer approval, policy endorsements can be made to accommodate ownership changes.

Can engineering insurance be customised during renewal?

Yes, engineering insurance policies can be customised based on business needs at the time of renewal. Policyholders can add coverage extensions, adjust coverage limits, or include additional protections for specific risks related to construction projects, equipment, or operations.

Who should I contact to renew my engineering insurance policy?

You can contact our customer support if you have invested in an engineering insurance policy from us. Our team will help you in ensuring comprehensive coverage for your project.

What is the process of renewing engineering insurance policy?

Talk to your insurance provider if you need to renew your engineering insurance plan. The renewal process can vary from one insurance provider to another.
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