Plant and Machinery Insurance for Construction & Trade Businesses Explained

For tradies and contractors across Australia, machinery isn’t just an asset — it’s the core of the business. Equipment damage can result in delays completing projects, safety risks, and major financial loss. That’s where plant and machinery insurance comes in. It’s not just a product — it’s a protection strategy that helps keep your projects running.

At Atlantic Insurance, we work closely with construction businesses, mobile plant operators, and tradies to tailor insurance solutions that match the unique risks of your machinery and work environments.

What Does Plant and Machinery Insurance Cover?

Plant and machinery insurance provides comprehensive coverage for owned or hired equipment, including earth moving equipment, excavators, forklifts, trailers, and scissor lifts. It protects against a range of risks, including accidental damage, fire, theft, vandalism, malicious damage, and storm events. Most policies also include mobile plant cover while equipment is in use or transit.

Unlike typical motor insurance, these policies are designed for operators exposed to high-risk environments. Whether you’re working in construction, mining, or landscaping, this type of insurance addresses your most critical exposures.

Atlantic Insurance will provide recommendations to help you consider a sum insured that accurately reflects the policies basis of settlement to minimise the chances of surprises at claim time ensuring you’re not left out of pocket in the event of loss or damage.

Who Needs Plant and Equipment Insurance?

If you operate heavy equipment or mobile plant and equipment, insurance is essential. We work with a wide range of clients including:

Contractors who own plant and hire it to third parties, builders who use mobile plant for on-site work, and specialists in excavation, roadworks, and industrial maintenance. These operators often require insurance that meets contract conditions, legal obligations, and the practical demands of running a busy business.

Even if you’re a small business or owner operator, the right policy can protect against theft from sites, material damage, and third-party liability claims if your plant causes injury or property damage.

Machinery Breakdown Insurance: Why It’s a Must-Have

Machinery breakdown insurance protects against the sudden mechanical or electrical failure of essential equipment. If your equipment stops functioning, you may face costly repairs, downtime, or equipment hire costs.

Cover may include:

• The cost to repair or replace internal components after a breakdown
• Reimbursement for associated costs like freight, labour, and installation
• Replacement hire machinery to maintain business continuity

Whilst this cover is not automatically included in most Plant and Machinery Policies it can often be added as an optional extension to cover.

Cover Options and Policy Flexibility

No two sites or operators are the same, which is why we provide a broad range of cover options. Some businesses require public liability included in their machinery cover. Others need equipment insured across multiple sites or during transport. Our team will identify the policy structure that supports your operations.

Cover options may include:

• Protection for both fixed and mobile plant
• Coverage across multiple sites and states
• Liability cover if machinery injures others or causes property damage
• Policy extensions for wet hire or dry hire
• Inclusion of equipment used in construction and mining
  

Policies can be set to provide either agreed value or market value, and our brokers will help ensure your sum insured is sufficient to cover total loss scenarios.

Common Risks Covered

Plant and equipment are exposed to many risks including damage whilst being used, in transit and theft when left unattended. 

Your policy may protect you against:

• Loss or damage caused by operator error or accident
• Fire or explosion
• Theft from job sites
• Impact from other vehicles
• Malicious damage or vandalism
• Unexpected repair costs following equipment failure (if breakdown cover taken)

Through Atlantic Insurance, you gain access to insurers that understand the nature of heavy equipment and machinery with the ability to provide cover Australia Wide.

Why Choose Atlantic Insurance?

At Atlantic Insurance, we focus on construction, civil, and trade industries that rely on machinery to stay operational. Our brokers understand contract compliance, fleet structure, seasonal site work, and the demands of managing third-party exposure.

We provide:

• Access to major insurance product providers and specialist underwriters
• Advice on tailoring plant and machinery cover to your items typical use
• Assistance with lodging claims with minimal disruption to your schedule
• Flexible options for business insurance packages, including liability and property

Whether you’re insuring a forklift, excavator, or large-scale plant fleet, we’ll make sure your machinery is protected and your business assets and liabilities are covered.

Get Insured with a Tailored Machinery Policy Today

Don’t leave your business exposed to risk. With a policy from Atlantic Insurance, you can cover everything from accidental damage to total loss, including protection against third-party injury and damage claims.

Whether you’re a contractor or running a full-scale construction business, speak to our team today and let us design a plant and machinery insurance policy that keeps your operation protected and profitable.

Get a quote, get insured, and protect your machinery with Atlantic Insurance.