Plant and Equipment Insurance can generally cover machinery that is:

• Owned outright
• Financed
• Leased
• Subject to a hire purchase arrangement

The ownership and finance arrangements should be accurately disclosed.

What information should be recorded? #

Depending on the item, this can include:

• Make and model
• Year
• Serial number
• Insured value
• Registered owner
• Finance or lease arrangement
• Finance provider
• Intended use
• Hire activities

What happens if financed equipment is written off? #

The finance provider may have an interest in the insurance settlement.

However, the amount payable under the insurance policy is not automatically the same as the outstanding finance balance.

If the insurance settlement is lower than the amount owing to the financier, the business may remain responsible for the difference.

Some policies can offer additional finance-related benefits, but these vary and can have separate limits and conditions.

Equipment values and finance arrangements should be reviewed when machinery is purchased, refinanced or replaced.

Contact our team if you need to add financed plant or equipment to your insurance.