What Is Contractors' Plant & Machinery (CPM) Insurance?
CPM insurance addresses physical damage exposures affecting plant and machinery used by contractors and equipment owners in construction, infrastructure and related operations. Insured property, activities, territorial limits, exclusions and conditions are determined by the agreed policy wording.
The scope of cover depends on the equipment schedule, how the equipment is used and the policy wording. This page does not promise that cover will be given or that any particular scope exists.
Equipment That May Be Insured
The following equipment, and similar plant, may be assessed for insurance:
- Excavators, bulldozers, graders and loaders
- Cranes
- Mobile generators and compressors
- Concrete pumps
Inclusion of individual items is subject to underwriting acceptance and the policy schedule.
CPM and the Plant Cover under CAR
Construction Insurance General Conditions A.3(a) allow contractors' plant and equipment to be included by additional agreement. CPM may instead be structured as a separate insurance arrangement addressing the equipment's particular exposures. Cover at different sites, in transit or during operation is determined solely by the applicable policy terms.
Scroll the table horizontally to see all columns.
| Plant cover under CAR | CPM | |
|---|---|---|
| Basis | Construction GC A.3(a): additional agreement | Policy wording; this page cites no General Conditions for CPM |
| Structure | Added to the construction policy by additional agreement | May be assessed as a separate policy structure suited to the equipment's exposures |
| Erection side | Erection GC art. 2(a): machinery and equipment used for erection are excluded unless otherwise agreed | — |
| What determines cover | The terms of the relevant policy and additional agreement | The terms of the relevant policy, including use at different sites, transit and operation |
For the construction period, see Construction & Erection Insurance; for erection, Erection All Risks (EAR) Insurance.
CPM and Machinery Breakdown Insurance
Machinery Breakdown insurance addresses specified sudden and unforeseen damage to machinery and plant under its General Conditions. CPM requires a separate underwriting assessment of contractors' equipment, including operating locations, mobility, activities and exposure patterns. The two arrangements must not be treated as automatically interchangeable.
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| Machinery Breakdown | CPM | |
|---|---|---|
| Focus | Specified sudden and unforeseen damage to the machinery and plant described in its General Conditions | Physical damage exposures of contractors' equipment |
| Underwriting assessment | The policy schedule and the General Conditions | Operating locations, mobility, activities and exposure patterns |
| Interchangeability | Must not be assumed | Must not be assumed |
For how the Machinery Breakdown General Conditions treat construction plant, see the relevant section of Machinery Breakdown Insurance. For the general framework, see Engineering Insurance.
Risks and Exclusions: Subject to the Policy Wording
The topics below are possible underwriting subjects; none is promised as automatic cover:
- Sudden physical damage
- Overturning and collision
- Theft
- Flood and fire
- Movement and use on public roads
- Transport between sites
The following call for separate assessment under the applicable policy wording:
- Wear and tear and lack of maintenance
- Internal mechanical breakdown
- Hired-in machinery
- Third-party liabilities
- Operator error
Quotation Information Set
In assessing a CPM proposal, an insurer may typically ask for the information below. This is an underwriting information set, not a list of mandatory documents; the information needed varies by insurer and equipment.
- Type of machine, make and model, year of manufacture, serial number
- Ownership or hire status
- New replacement or agreed value
- How the equipment is used, and locations
- Manner of transport
- Operator arrangements
- Maintenance history and claims history
- Covers, limits and deductibles requested
Frequently Asked Questions
What is Contractors' Plant & Machinery (CPM) insurance?
How does it differ from the plant cover available under CAR?
How does it differ from Machinery Breakdown insurance?
Are different sites and transport covered automatically?
Can hired-in or leased equipment be insured?
Are theft and overturning included in every policy?
How are premium and deductibles assessed?
Neolife's Role
Neolife Group can review the relevant information and policy wording, research suitable local insurance solutions, run a placement exercise and compare the quotations received. This does not mean any insurer's capacity, acceptance of cover, price or payment is promised; acceptance and terms remain with the insurer.