Financial Protection Cover is a term used by some Plant and Equipment insurers for optional benefits designed to reduce certain financial consequences following insured damage to plant or equipment.

There is no single standard Financial Protection Cover.

What can it include? #

Depending on the insurer and policy, benefits can relate to:

• Outstanding finance following a total loss
• Certain loan or lease commitments
• Temporary hire equipment
• Increased operating costs
• Loss of income
• Other business interruption expenses

These benefits are not automatically included in every Plant and Equipment Insurance policy.

They can have separate:

• Limits
• Waiting periods
• Indemnity periods
• Conditions
• Excesses

Does it cover any equipment breakdown? #

Not necessarily.

A financial loss will generally need to arise from an event covered under the relevant policy section.

Mechanical breakdown or equipment simply becoming unusable should not be assumed to activate Financial Protection Cover unless the policy provides the relevant cover.

Check the policy schedule and wording to confirm which benefits have actually been selected.

Contact our team if you need help understanding the financial protection benefits under a Plant and Equipment policy.