Theft of plant and constructional equipment is on the rise in the UK. According to Allianz, one of the leading construction insurers in the UK, plant theft costs the UK construction industry over £800m a year.

As an owner of plant and machinery it is crucial that any clauses and conditions in your Contractors All Risks or Plant Insurance policy are read, understood, and most importantly complied with.

Because plant and constructional equipment is so vulnerable to theft, many insurance policies will include a condition or “warranty” (which is insurance language for a promise to do something) that requires specific security measures to be in place at the time a theft occurs, before insurers will agree to pay out on a claim. This is most commonly known as a “Plant Security Warranty” but similar conditions can appear using different terminology.

Examples of specific security measures set out in a Plant Security Warranty can include, but are not limited to, plant items being stored in a secure compound, machine attachments being stored within a locked building or container and so on.

Plant Security Warranties are often overlooked by policyholders or not explained properly to the policyholder by the broker, which can result in non-compliance with the policy and ultimately claims then being rejected by the insurer. Mistakes such as these can prove very costly especially if a large expensive item of plant is stolen.

As specialist insurance brokers to the construction industry Construction Risks UK are able to advise on the most appropriate policy to protect your Plant and Equipment and will take the time to explain the various policy terms and conditions to ensure that you remain fully compliant and your claims are paid.

Talk to us today about how you can protect your plant and equipment on 03300 53 9494.