Plant and machinery are often among the most valuable — and most exposed — assets in a business. Damage, theft or breakdown of plant can halt operations, delay projects and create significant financial loss. Plant & Machinery Insurance is designed to protect these assets and the income they generate.

At Rivergum Insurance Brokers, we arrange plant insurance programs that reflect how equipment is owned, hired, operated and contracted, not just what it is.

Who Needs Plant & Machinery Insurance?

Plant & Machinery Insurance is relevant to businesses that own, operate or hire plant and equipment, including:

• Construction and civil contractors

• Mining and resources contractors

• Earthmoving and excavation businesses

• Plant hire companies

• Manufacturing and industrial operators

• Infrastructure and utilities contractors

• Transport and logistics operators

• Agricultural and forestry operations

Key Risk Exposures for Plant & Machinery

Plant risks extend beyond simple physical damage and often include:

Accidental Damage & Breakdown

Collision, overturning, fire, mechanical or electrical failure.

Theft & Vandalism

Plant stolen from sites, depots or during transit.

Operational Risk

Damage arising during use, loading, unloading or relocation.

Downtime & Financial Loss

Loss of income or project delays while plant is out of action.

Liability Exposures

Injury or property damage caused by plant operation.

Industrial Special Plant (ISP) Insurance

What Is Industrial Special Plant Insurance?

Industrial Special Plant (ISP) policies are designed for complex, high-value or specialised equipment that may not fit within standard plant insurance.

ISP policies can cover a broad range of exposures under one integrated policy.

What Can an ISP Policy Encompass?

Depending on the insurer and structure, an ISP policy may include:

• Mobile and static plant

• Fixed machinery and production equipment

• Electrical and mechanical breakdown

• Sudden and accidental damage

• Fire and natural perils

• Transit risks

• Testing and commissioning

• Business interruption linked to plant failure

ISP policies are often used where:

• Plant is critical to operations

• Equipment is highly specialised or bespoke

• Downtime would have a significant financial impact

Hired-In Plant Insurance

What Is Hired-In Plant Cover?

Hired-in plant insurance covers plant and equipment hired or leased from others that you are legally responsible for under a hire agreement.

This is a critical exposure for many contractors.

What Hired-In Plant Cover Typically Includes

• Loss or damage to hired plant

• Legal liability under hire contracts

• Coverage during use, transit and storage

Without this cover, businesses may be required to self-insure the full replacement value of hired equipment.

Dry Hire vs Wet Hire

Dry Hire

• Equipment is hired without an operator

• Hirer assumes operational responsibility

• Higher exposure for damage and misuse

Dry hire often requires:

• Hired-in plant cover

• Careful contract review

• Damage waivers or excess buy-downs

Wet Hire

• Equipment is hired with an operator

• Operational control remains largely with the owner

• Liability arrangements differ significantly

Insurance responsibility can vary depending on:

• Contract wording

• Control of the worksite

• Allocation of risk

Damage Waivers & Excess Reduction

Many hire agreements include damage waivers or excess reduction options, which:

• Reduce the excess payable in the event of damage

• Transfer some risk back to the hirer

These are not insurance policies and:

• Have strict conditions

• May not cover all loss scenarios

• Often exclude theft or major damage

Understanding how waivers interact with insurance is essential.

Financial Payment Protection

What Is Financial Payment Protection?

Financial Payment Protection (also referred to as hire charge protection or financial loss cover) can respond to:

• Ongoing hire costs while plant is being repaired

• Contractual hire payments following insured damage

This is particularly relevant where:

• Hired plant continues to attract charges

• Projects are delayed due to equipment downtime

What’s Not Automatically Covered?

Plant policies commonly exclude or limit:

• Wear and tear or gradual deterioration

• Lack of maintenance

• Undisclosed hire arrangements

• Operation outside declared conditions

• Contractually assumed liabilities beyond policy terms

Disclosure of how plant is used is critical.

Why Plant Insurance Requires Specialist Structuring

Gaps commonly arise where:

• Owned and hired plant are not aligned

• ISP and standard plant covers overlap or conflict

• Contract terms exceed policy intent

• Wet vs dry hire responsibilities are misunderstood

Why Arrange Plant & Machinery Insurance Through Rivergum?

We help businesses:

• Identify all plant ownership and hire arrangements

• Structure ISP and standard plant cover correctly

• Align insurance with hire contracts

• Address financial loss and downtime exposures

• Assist with complex plant claims

Our focus is on ensuring plant insurance supports operations rather than disrupting them.

Speak With Us

If your business owns, operates or hires plant and machinery, we can help review your risks and insurance structure.

Contact Rivergum Insurance Brokers to discuss your equipment, contracts and operational exposures.