Insurance for Civil and Earthmoving Contractors

Do you operate mobile plant and equipment, or, work on civil infrastructure projects? You might need a specialised Liability Insurance or Industrial Special Plant insurance policy that can provide you with the appropriate protection for your work.

Whether you are a sole trader with a Bobcat and Truck or a large scale Civil Contractor, we and help you make sure you have the right cover for your business. To us, it doesn’t matter whether you provide site preparation services or road & rail construction, we're here to help. 

What is Industrial Special Plant cover?

Industrial Special Plant (ISP) cover, also known as Mobile Machinery Insurance is a type of policy designed specifically for trades and earthmoving contractors where the business revolves around mobile, self propelled machinery such as excavators, skid steers, loaders, roadmaking and paving equipment, dozers, telehandlers, EWPs, cranes, drills and augers.

Some insurers, particularly direct insurers that advertise on TV will try to insure your mobile machinery and plant as a Motor Vehicle. Whilst this can provide you with very basic cover, a motor vehicle policy doesn’t provide you with any protection for recovery of undamaged vehicles, the costs of hiring alternative plant, cover for your machinery whilst on dry hire, or, damage by employees who are misusing your equipment.

An ISP or mobile machinery policy can also cover equipment that you hire in. Most companies that hire you equipment will include a damage waiver, but, those damage waivers usually don’t extend to theft which can leave you and your business with an uninsured loss not insurable on a motor vehicle insurance policy. The Hired in Plant insurance cover can be a specified list of equipment or a broad blanket cover for all equipment you hire up to a specific limit.

What about Liability insurance for Earthmovers and Civil Contractors?

This cover can be included within an ISP policy for some smaller businesses. For some larger businesses, or, where more specialised cover is required, we can help you arrange a separate Broadform Liability Insurance designed specifically for Civil Contractors or Earthmovers.

What is wrong with a Standard Business Insurance or Trades Pack Liability Cover?
In most cases, a Business Insurance policy or Trades package will have certain restrictions that mean you may not be covered in certain situations. It is common for a Business Liability Insurance policy to exclude work beyond 1m or 2m in depth, it may have a height restriction, it may exclude damage to underground infrastructure, or, it may not cover you in certain situations if you have not told the insurer, for instance, working on mine sites or working with water or electrical civil infrastructure.

Who is it for?

Any business that operates on or with Civil Infrastructure, or, operates their business through the use of, or, hire of, mobile plant and machinery.

We commonly help businesses in the following industries:

- Plumbers & Gasfitters
- Pipe Installation and Cable Service, including NBN Contractors
- Fencing Contractors
- Site Preparation Services
- Concrete Contractors
- Railway Contractors
- Civil Contractors (Water & Sewer)
- Civil Contractors (Electricians with Class 2x or Level 2 Certification)
- Excavator Hire
- Solar Power Installation
- Demolition and Waste Removal Contractors
- Pumping and Irrigation Equipment Installation and Servicing

What other insurance policies may you require in addition to an ISP or Broadform Liability cover?

The main core covers that most operators would consider are:

  • Mobile Plant & Machinery Cover for your own Equipment or Equipment that you hire in

  • Truck Insurance for your truck and or trailer that transports your machinery

  • Public Liability Insurance, typically $20 Million

  • Depot or Office cover for your other fixed assets at your office or depot.

  • Contract Works insurance for larger scale construction projects

  • Professional Indemnity for larger scale projects with design or concept work

We can help you with all of these covers. There are of course other policies that may be suitable for your business, whilst the above policies are commonly taken, we also understand that no two businesses are the same. We will help you understand what cover you should consider may be appropriate for your business. 

You can find more information on other insurances you may require for your business below. We can of course help you with these policies too.

We’re here to help. If you aren’t sure or would like advice, give our team a call on 02 4322 7856.

DOWNTIME LOSS OF INCOME

Downtime Loss of Income cover is an extension of cover that provides financial protection for your business in the event of damage to or theft of your insured machine(s). In most cases, cover can be arranged for either:

  • Loss of Income during the time the machine is repaired (up to a maximum $ per week for a set number of weeks),

  • The costs to hire a temporary machine allowing you to continue to work whilst your machine is fixed, recovered, or replaced, or,

  • The lease or finance costs that are incurred for the machine whilst it is fixed, recovered, or relaced.

 

Contractual Liability                           

Whilst incidental contractual liability insurance may be insured by some liability insurance policies, it often excludes liability that would not have existed without the contract. This exclusion of the included cover generally will make most policies not actually cover any contractual liabilities arising from any contract that you enter into with customers or suppliers.

 

Directors Liability & MANAGEMENT Insurance             

As the director of a company, you can be held personally liable for decisions you or your staff make on your behalf in the running of your business. These decisions may result in an alleged breach of employment law (harassment, discrimination, bullying, unfair dismissal), trade practices act, environmental protection, or workplace health & safety laws. A directors liability or management liability insurance policy generally protects the company and any innocent parties by paying for defence cover to defend against such allegations against you as a director and / or the business entity.

 

CONTRACTORS Environmental Liability (CEL)

As a Civil Contractor or Earthmoving Operator, you may be responsible for environmental cleanup costs associated with a contamination that may arise from work that you undertake whilst on site.  

Whilst some public liability policies do provide ‘pollution liability’ they are often restricted to a sudden and unforseable release of contaminants, such as a diesel tank impacted by an excavator suddenly leaks provided such impact wasn’t a forseeable event. As a result of the limitations in a public liability policy and the potential for significant contamination cleanup costs, it is possible to insure for your environmental liability insurance as a Civil Contractor or Earthmoving Contractor

 

Trade Credit Insurance                       

For more information on Trade Credit Insurance, click here

Trade Credit Insurance provides cover for your unsecured debtors in the event that your debtor becomes insolvent or unable to pay their debt to you whilst within your credit terms. The policy can provide up to 90% of the outstanding income owed to you. This is not a type of invoice factoring but an insurance policy that responds to one specific debtor if they are unable to pay. This will be particularly important if you choose to wholesale your goods to other business providing them with credit terms in which to make a payment after they have placed their order.

 For some savvy business owners, this type of insurance can be used to help them grow by underwriting the risk associated with supplying to large corporate customers who require credit terms often at 90 days end of month as part of their conditions to supply. This type of insurance helps reduce the risk that this new large customer wont make payment when the time comes.

 

Workers Compensation                     

Workers Compensation is compulsory in most states for employers. In NSW for instance, if you pay more than $7,500 in wages, including casual labour and including goods or accommodation in lieu of monetary payments, it is compulsory for a workers compensation policy to be in place. This also includes directors of a Pty Ltd company, even if it is the family business.

We can assist you with Workers Compensation Insurance in the following states & territories

  • New South Wales Workers Compensation

  • ACT Workers Compensation

  • Victorian Workers Compensation

  • Tasmanian Workers Compensation

  • Western Australia Workers Compensation

  • Northern Territory Workers Compensation

As workers compensation insurance only covers you during working hours, you should also consider reviewing your life insurance, income protection, or injury insurance for you and your family on a 24 / 7 basis to cover you for injuries outside of the work environment.

 

Personal Accident & Sickness Insurance or Business Continuation Expenses

If you operate as a sole trader or partnership, or are a director of a pty ltd company in a state that doesn’t cover directors and are as a result unable to arrange cover for yourself under workers compensation insurance, you may wish to consider personal injury / accident insurance or a business continuation expenses policy.

A personal accident & sickness insurance can assist you in the event of an accident or sickness preventing you from undertaking your work by providing you with a weekly benefit of up to 85% of your ongoing weekly income. The policy can also be extended to include a capital lump sum benefit in the event of permanent disability or death.

Unlike Workers Compensation this type of policy is typically a 24 / 7 policy providing you with cover in your personal time. Whilst a personal accident & sickness policy covers you for a continuation of a portion of your salary, it typically doesnt cover your medical expenses associated with an injury or sickness.

The business continuation expenses insurance can be taken as an extension of this policy or as a stand alone policy in its own right. This particular cover helps protect your business by paying for the costs associated with keeping your business running whilst you recover from an accident or sickness claim.