Several indirect costs are related to any delay in any part of business operations. One cannot escape the risk of these costs whatsoever. However, they can transfer the burden to an insurance company. It is possible to ensure all projects and tasks go as planned, even if minor delays come the way.
Similarly, plant & equipment insurance can take a lot of burden off a business owner regarding production capacity. It can fulfil the requirements of producing firms and contractors without hindrance. On the construction site, the decision to deploy equipment or hire them from a vendor is very critical.
Terms and conditions
A general insurance policy takes a lot of risks for themselves. A public insurance policy takes a lot of chances for themselves. In both these cases, there are some terms and conditions that influence the whole insurance policy. However, the following terms and conditions still prevail throughout the entire process.- The insurance company won't cover any unattended pre-existing malfunction or defect.
- Adequate precautions are expected from the insured to keep the equipment in working condition while using or storing it it. Also, any kit comes with a safety manual and the manufacturer's recommendations. The insured must stick to those safety points.
- The insured is expected to maintain the equipment as recommended. There is always a specified interval after which the equipment must get a service to fulfil its purpose in the best possible manner.
- Any depreciation or wear and tear during storage will only be covered if the equipment is used.
- Only trained and skilled personnel must operate the machinery. The equipment must not be accessible to unauthorized people, as it can null and void the policy.
- The insured must provide complete information when the insurer carries out an inspection. However, the insured will get a prior notice when there is a need for review.
- After inspection, the premium and/or insurance cover can change for any location alterations. Property plant and equipment insurance are prone to some changes after review.
- In case of any dispute between the insured and the insurer, it will be resolved through professional mediation and negotiation.
- The insured must carry out enough steps to minimize the amount of loss. In an emergency situation, he is expected to implement all safety factors. Any negligence on his part can render the policy null and void.
- Any plant equipment contains some parts that undergo depreciation with regular usage. These parts are not covered in the policy.
- Any public liability arises when machinery is not used for its sole purpose. For example, when equipment travels from one place to another on the road. The policy will not cover public liability due to any mishappening on the way. Also, the equipment will not be insured against any damage during supply.
- Not using any complementary consumables that were recommended along with the equipment. For example, using the wrong or no coolant often leads to engine seizing.
