Contractors’ Plant & Machinery (CPM) Insurance

Contractors’ Plant and Machinery (CPM) insurance is specifically designed to cover the loss or damage of contractor’s plant and machinery that are crucial for their work. The policy covers the plant and machinery only when they are in operation and under the control of an operator. It provides comprehensive coverage against loss or damage to the equipment caused by accidents, natural disasters, theft, fire, or other unforeseen events.

Unlike EAR or CAR policies, CPM insurance covers the equipment at all times, whether it is in use or not, including during transportation or storage. However, it does not cover internal breakdowns or damages resulting from normal wear and tear.

It is important to note that CPM insurance only covers the physical loss or damage to the equipment and does not provide coverage for any third-party liability. Therefore, contractors must also obtain a separate liability policy to cover any damages or injuries caused by the equipment to third parties.