Contractors’ Plant & Equipment (CPM)

This is an insurance of contractors’ plant and machinery on an annual basis. The cover, which is similar to the scope of machinery insurance but excluding internal breakdown, applies at work, at rest or during maintenance operations and is not limited to a specific construction site. The sum insured is the new replacement value.

• loss or damage due to electrical or mechanical breakdown, failure, breakage or derangement, freezing of coolant or other fluid, defective lubrication or lack of oil or coolant, but if as a consequence of such breakdown or derangement an accident occurs causing external damage, such consequential damage shall be indemnifiable.

• loss of or damage to replaceable parts and attachments such as bits, drills, knives or other cutting edges, saw blades, dies, moulds, patterns, pulverizing and crushing surfaces, screens and sieves, ropes, belts, chains, elevator and conveyor bands, batteries, tyres, connecting wires and cables, flexible pipes, jointing and packing material regularly replaced;

• loss of or damage to vehicles designed and licensed for general road use unless these vehicles are exclusively used on construction sites;

• loss of or damage to waterborne vessels or craft;

• loss or damage occurring whilst any insured item is undergoing a test of any kind or is being used in any manner or for any purpose other than that for which it was designed;

• loss or damage due to any faults or defects existing at the time of commencement of this Policy within the knowledge of the Insured or his representatives, whether such faults or defect were known to the Insurers or not;