What owned plant insurance is
Owned plant insurance applies the cover described under Plant All Risk insurance to a portfolio that you own, finance or lease. The distinguishing features are the plant schedule, the valuations and the way changes during the year are handled.
A portfolio that grows, ages and moves between sites will drift away from any schedule agreed at the start of a policy year. The practical challenge is therefore less about the wording of any one clause and more about keeping the schedule accurate, so that the sum insured, the premium and the claims position all reflect what you actually own.
If you also hire out your plant to others, see plant hire businesses, where additional questions about hire terms and use by third parties arise.
Who may need owned plant insurance
- Contractors who have moved from hiring to owning and now hold several machines.
- Growing contractors who buy or replace plant during the year and need a clean process for adding items.
- Contractors whose plant is financed or leased and is subject to a financier’s insurance conditions.
- Businesses with an older mixed fleet where values, condition and replacement strategy vary widely.
- Contractors who occasionally hire out spare machines and need to understand how that affects the policy.
What may be insured, subject to terms
- Scheduled items
- Each machine listed individually with a value. This is the most common structure and the easiest to review at renewal.
- Attachments and spare parts
- Buckets, breakers, tyres and spares held in stores, subject to how they are described and stored.
- Plant moving between sites
- Machines that work on different projects throughout the year. Check that the policy applies wherever you work and not only at a named site.
- Additions and disposals
- How new purchases are added mid-term, from what date they are covered and how sold items are removed.
- Plant on finance or lease
- Items for which a bank or finance company must be noted as having an interest.
Important limitations and questions to discuss
- Schedule accuracy
- An out-of-date schedule can lead to underinsurance, uninsured machines or disputes at claim stage. Review it at least once a year.
- Valuation drift
- Values set at purchase rarely suit a machine five years later. Agree how and when values are reviewed.
- Maintenance and condition
- Insurers may ask about servicing records and inspection certificates, particularly for cranes and older machines.
- Yard and site security
- Machines left on remote sites or in open yards are a common theft target. Policy conditions on security should be realistic for how you work.
- Hire-out use
- If you hire plant to third parties, the policy may treat that use differently. Disclose it and ask what is required.
- Excess structure
- Different excesses may apply to different machine types. Check the effect on a small, frequent claim.
The plant register an underwriter will ask for
A good plant register makes quotations faster and claims easier. These fields are typical.
| Field | Why it matters |
|---|---|
| Make, model, year | Identifies the machine and sets a baseline for value and age. |
| Serial and chassis numbers | Needed for identification and for theft claims. |
| Value and valuation basis | Sets the sum insured and drives the premium. |
| Owner or financier | Shows whether another party’s interest must be noted. |
| Usual location and storage | Helps the insurer assess theft and damage exposure. |
| Hours or odometer reading | Gives an indication of wear and the condition of the machine. |
| Tracking or immobiliser fitted | May affect theft cover conditions and the quotation. |
| Operator and servicing records | Supports competence and maintenance conditions. |
Information we usually need for a quotation
For a portfolio quotation, the plant register is the main document. Alongside it we usually need the following.
- The plant register, or a list of machines with approximate values.
- Details of any financiers or lessors and their insurance requirements.
- A summary of where the plant is deployed during a typical year.
- Security arrangements for yards, depots and site storage.
- Whether any of the plant is hired out to third parties.
- Your claims history for the last few years and details of your current policy.
- How you plan to add or dispose of machines during the policy period.
You do not need everything on day one. A short description of the work is enough to start, and the quote form only asks for the details relevant to your enquiry.
Frequently asked questions
How are new machines added during the year?
The policy sets the process, which is often a notification to the insurer with the machine details and value. Ask whether cover applies from the date of purchase or from the date the insurer confirms the addition.
Do I need to update values every year?
It is sensible to review them at least annually. Out-of-date values can lead to underinsurance or to paying premium on more than you would be paid for a loss.
Can one policy cover plant at several sites?
Often yes, if the policy is written on a basis that applies wherever the plant is working within the stated territory. Confirm the territory and any site-specific conditions.
Does this cover plant I hire out?
That depends on the wording and on what the hire agreement requires of the hirer. See plant hire businesses for the questions to ask.
Related cover
- Plant All RiskCover for excavators, loaders, rollers and other contractors’ plant against accidental loss or damage, subject to terms.
- Hired-in plantCover aimed at your responsibility for hired equipment under the hire agreement, including damage and loss while in your care.
- Tools and equipmentCover for portable tools and smaller equipment such as generators, compactors, breakers and survey instruments.
- Sasria coverSpecial-risk cover for events such as riot, strike and public disorder, which standard policies normally exclude.
Related guides
- What affects the cost of plant insuranceWhat affects plant insurance cost for contractors: valuation, equipment type and age, usage, location, security, operators, excess and claims record. No premium rates.
- Documents needed for a construction insurance quoteA practical guide to the documents and information needed for a construction insurance quote: project, contract, plant, business and claims information.