Contractor Plant & Machinery Insurance (CPM)

This is an annual policy designed to cover construction equipment like bulldozers, cranes, excavators, compressors, etc.

This Policy broadly covers loss or damage to the contractor’s property due to any cause that is accidental and external in nature. Cover operates when the insured property is at work or at rest or being dismantled for the purpose of cleaning/overhauling or during subsequent re-erection.


Significant exclusions:

  • This Policy does not cover loss or damage due to electrical or mechanical breakdown, replaceable parts, defective lubrication, loss or damage for which supplier or manufacturer is responsible, consequential loss, etc.

Sum Insured:

  • Sum Insured of each item of machinery shall be the present day replacement cost. Sum insured is computed from replacement cost including freight, cost of erection and custom duty, if any.


  • Premium depends on the type of equipment and the location of operation.


Main policy can be extended on payment of additional premium to cover:

  • Third Party Liability
  • Owner’s Surrounding Property
  • Clearance and Removal of Debris
  • Overtime, Express freight
  • Additional Customs Duty