What is plant and machinery insurance?

From diggers and dumpers to cement mixers and compressors, plant and machinery are the backbone of many trades. Whether you’re a builder, groundworker or contractor, your equipment keeps projects moving. And when something goes wrong, the costs can quickly add up – that’s where plant and machinery insurance comes in.

Designed specifically for tradespeople who rely on heavy or specialist equipment, this type of cover helps protect your machinery and hired plant from unexpected events like theft or accidental damage. Without it, a single incident could delay jobs, impact your income and leave you facing expensive repair or replacement bills.

We’re here to break down exactly what plant and machinery insurance is, what it can cover, and why it’s an essential part of a well-rounded trades insurance policy.

*Disclaimer – the following is a general guide to plant insurance. Please always check your policy documents or with your insurer for more accurate information.

What is plant and machinery insurance?

Plant and machinery insurance is a type of cover designed for tradespeople who work with heavy plant equipment like diggers, cement mixers and excavators. Think builders, groundworkers, bricklayers and many other construction-related trades.

It’s there to cover the costs if plant that you either own or hire gets accidentally damaged, vandalised or stolen. Cover typically applies to machinery used on-site, in storage, or while being transported between jobs.

You’ll normally find it alongside trades insurance packages as an optional add-on, though you may also find it as a stand-alone policy.

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What does plant insurance cover?

While cover will vary across insurance providers, plant insurance can generally cover the cost to repair or replace plant or machinery in cases like:

• Theft – from a secured site compound or locked off-site storage
• Damage – from accidental site incidents, vandalism, fire, theft or acts of nature
• Destruction – from fire, vandalism or acts of nature

What counts as plant and machinery?

When it comes to insurance, “plant” normally refers to larger machinery used to carry out construction work – rather than hand tools which are covered under tools insurance.

That can include:

• Heavy machinery – excavators, dumpers, bulldozers
• Smaller plant equipment – cement mixers, generators, plate compactors
• Site equipment – Lighting towers, compressors, pumps
• Powered access equipment – cherry pickers, scissor lifts

Although not necessarily classed as “machinery”, plant insurance can also cover temporary site buildings.

Plant insurance claims examples

To put that into perspective, it helps to understand how plant insurance can work in real-life situations. From stolen machinery to accidental damage on-site, these examples show the kinds of issues tradies can face where plant cover can help:

• A mini excavator is accidentally hit by other on-site machinery
• Severe weather causes a tree to fall over and damage plant equipment
• A cement mixer is vandalised after miscreants break into a locked work site
• A generator is accidentally damaged while being transported between jobs
• Heavy flooding damages machinery that’s appropriately stored on-site
• A mini digger is stolen overnight from a locked construction compound

What it doesn’t cover

On the flip side, knowing what plant and machinery insurance doesn’t cover can help you see the big picture. Similar to many other trades insurance policy types, plant cover often excludes claims involving:

• General wear and tear to plant equipment
• Mechanical or electrical breakdown of machinery
• General motor vehicles like cars or vans
• Plant stored in an unsecured location (e.g. unlocked compound)
• Intentional damage or incidents caused by reckless use of equipment

Hired in plant insurance vs owned plant insurance

Plant insurance is an overarching term used to refer to policies that cover plant and machinery. But, when looking at options, you’ll probably find it’s usually offered as one of two types of cover: hired in plant or owned plant.

What is hired in plant insurance?

Hired in plant insurance is all about protecting equipment you rent for a job or are responsible for.

So, if you’re bringing in something like a digger, mixer, or generator for specific jobs, this cover helps make sure you’re not out of pocket if something goes wrong.

Even though the equipment isn’t yours, you’re usually responsible for it while it’s on your site. That means if it gets damaged, stolen, or goes missing, the cost could fall on you. Hired in plant insurance helps take that risk off your plate, so you can focus on the job without worrying about a hefty bill at the end.

What is owned plant insurance?

Owned plant insurance is there to protect the equipment that belongs to your business. This is the machinery you’ve invested in and rely on day in, day out.

If it gets stolen, damaged, or vandalised, this type of cover can help with the cost of fixing or replacing it. Without it, you’d be footing the bill yourself, which can be a big hit.

What’s the difference between hired in plant and owned plant?

Both hired in plant insurance and owned plant insurance can cover the same thing – plant machinery like diggers, generators or dumpers. Where they differ is whether you own the equipment or have rented it:

• Hired in plant insurance: can cover plant that you’ve hired or are responsible for
• Owned plant insurance: can cover plant that you or your company own

Can I insure both owned and hired equipment under one policy?

Many insurers will offer options to include both owned and hired in plant insurance in your cover. These might be offered as separate add-ons but can be included under one package policy to keep things simple.

Kingsbridge Trades Insurance

At Kingsbridge, we offer a flexible combined Trades Insurance policy that you can tailor with our Owned Plant and Hired in Plant add-ons.

That means you can get standard cover like Public Liability, Goods & Tools cover and Employers’ Liability (where required) plus the extra cover you need all under one handy package policy.

Our cover also offers perks like:

• Up to £2,500 Goods & Tools cover included as standard
• Other optional add-ons for extra flexibility, like Contract Works and Professional Indemnity (claims-made basis)

• Cover for tools stolen from a secured van overnight (where there are signs of forced entry and security conditions are met)

• Nil or low excess available for some trades (will be noted in your policy schedule)

• Real support from in-house dedicated experts

• No hidden fees

Get in touch to get a quote today or speak to our in-house experts to find the right level of cover for your trade.

Plant and machinery insurance FAQS

How much does plant insurance cost?

The cost of plant and machinery cover really depends on what you need to insure. Things like the value of your equipment, the type of machinery you use, and the level of protection you want will all play a part. For example, insuring a digger or crane is usually going to cost more than smaller kit. Where you use and store your equipment can also make a difference. The easiest way to get an accurate idea is to get a quote based on your setup.

Who needs insurance for plant and machinery?

If your business relies on machinery to get the job done, it’s worth thinking about plant cover. That could include builders, contractors or landscapers – anyone using equipment like excavators, generators, or diggers. Whether you own the machinery or hire it in, having cover in place can help protect you if something goes wrong.

Is plant and machinery cover the same as tools insurance?

Not quite. Tools insurance is more for smaller, everyday items like drills and hand tools. Plant and machinery cover is aimed at the bigger, heavier stuff – think diggers, loaders, and heavy-duty equipment. They’re different types of cover, although some insurers let you combine them in one package policy for convenience.

Do I need plant and machinery insurance?

It’s not a legal requirement, but it’s definitely worth considering if your work depends on your equipment. Repairs or replacements can be expensive, and any downtime could hit your business hard. Having plant insurance in place helps take that pressure off, so you can focus on getting the job done without worrying about the ‘what ifs’.

What types of plant and machinery can be insured?

Most policies cover a wide range of equipment, from excavators and dumpers to compressors, generators, and forklift trucks. Some can also include smaller machinery or specialist equipment, depending on what your business uses day to day. Always check with your insurer for more details on what equipment and machinery they can insure.

Am I covered if my machinery breaks down?

Most policies (like ours) don’t include breakdown cover automatically. Standard plant cover usually focuses on damage or theft, so if you want protection against mechanical or electrical failure, you may need to add breakdown cover separately.