Key Takeaways

• Equipment insurance can help reduce financial impacts arising from accidental loss, material damage, or theft of essential tools and machinery.
• Ideal for businesses operating construction, industrial, mobile plant, and machinery across multiple locations.
• Cover options may include Public Liability, Business Interruption, and optional Management Liability.
• Licensed insurance brokers such as VIM Cover can assist with policy documentation, payment options, and guidance throughout your insurance process.

Businesses rely on a wide range of tools and machinery, from small equipment and portable tools to larger plant and heavy machinery to keep their operations running smoothly. An unexpected breakdown, accident, or theft can interrupt work and affect cash flow. Equipment insurance can help protect your business against these types of unforeseen events.

At VIM Cover, we aim to support businesses that depend on machinery and equipment by arranging insurance solutions that offer clarity, flexibility and value. Our approach focuses on providing tailored options that help safeguard your assets and assist in maintaining continuity across your projects and job sites.

What Is Equipment Insurance and Why Is It Important?

Equipment​‍​‌‍​‍‌ insurance is designed to help protect your business from financial loss relating to your tools, machinery, and other essential operational equipment. This type of cover may apply across industries such as construction, manufacturing, logistics, and trades, particularly where equipment plays a critical role in project delivery.

Depending on the specific policy, equipment insurance may help cover:

• Accidental loss or material damage
• Theft or vandalism
• Breakdown of machinery (subject to policy terms)
• Disruption to business operations caused by equipment failure

Because cash flow and operational continuity are vital, having suitable cover may assist in reducing downtime and unexpected expenses.

Understanding What Equipment Insurance Covers

Policies vary by insurer, so ensure your policy fits the way you do business and the kind of equipment you use. A properly designed policy may include the following:

• Accidental loss and material damage, thus minimising the loss caused by sudden and unforeseen events.
• Property damage on or off the work sites, that is, if it is an incident involving machinery, tools, or motor vehicles.
• Public Liability Insurance protects against claims arising from third-party injury or damage.
• Business Interruption, which in essence is the loss of income when the business is required to shut down temporarily.
• Optional add-ons, such as Management Liability, Contents Insurance, or Indemnity Insurance, to name a few, assist in tailoring a policy to your needs. 

Your Policy Wording and PDS detail all inclusions, exclusions, conditions, and limits. We recommend reviewing these documents carefully before selecting a policy. We operate with complete honesty and openness, thus you are always aware of the extent of your insurance ​‍​‌‍​‍‌coverage.

Who Needs Equipment Insurance?

Machinery and Equipment Insurance is a policy often misunderstood as reserved for big companies. However, these policies can apply to a diverse range of businesses, such as:

• Contractors and construction companies utilise mobile plant and heavy machinery.
• Small and medium enterprises that have portable tools or mobile phones, which are essential for their daily operations.
• Businesses that either own or lease the vehicles or machinery used for multiple job sites.
• Companies that depend on hired-in plant for short-term projects or dry hire insurance for rentals.

Regardless of what industry you are in, the act of protecting the tools and machinery that you utilise is, in essence, the protection of your productivity and ​‍​‌‍​‍‌reputation.

Key Features of Equipment Insurance Policies

• Clear​‍​‌‍​‍‌ Policy Documents and simple Policy Wording to make it easy for you to understand exclusions and limits.
• Choices to cover mobile plant, hired-in plant, and dry hire insurance arrangements. Cover for both owned equipment and a hired-in plant, including a certificate of currency as proof of cover.
• Flexible payment options and documentation to provide the information you need to make the right financial decision.
• Additional features for Management Liability, Public Liability Insurance, or Business Interruption to help safeguard your business.

What Does Equipment Insurance Cover?

Equipment insurance generally includes:

• Accidental loss, material damage, and property damage – the cost of the repair or replacement of the equipment that has been damaged either on the job site or off.
• Machinery Breakdown and accidental damage cover for mechanical failure beyond normal wear and tear (it is worth noting that wear-and-tear exclusions are often applicable).
• Business Interruption cover that can be used to replace lost business income due to a standstill in projects resulting from equipment failure.
• Public Liability Insurance, as well as Management Liability, can be used to protect the insured against claims from third parties arising from the use of the equipment.
• Support options such as Contents Insurance, Personal Accident, and financial hardship assistance are available.

Types of Cover Available

• Machinery​‍​‌‍​‍‌ and Equipment Insurance: specifically for the machines used in the construction works or operations of the likes of heavy machinery, excavators, loaders, and mobile plant.
• Mobile plant and equipment insurance: designed specifically for equipment that is regularly moved between sites or driven on public roads.
• Hired-in plant / Dry hire insurance: Helps protect rented equipment and lessens the risk of hire cost.
• Indemnity Insurance & Business Insurance Pack: single combine covers (e.g., Public Liability + Equipment + Commercial Vehicles) for broader protection.
• Portable tools include the essential gear, such as power tools and mobile phones, used on the site.

How to Choose the Right Equipment Insurance Policy

When​‍​‌‍​‍‌ choosing the kind of cover that you want, you mustn’t just consider the price. Review the Policy Wording, the policy terms, and the sum insured to ensure your assets are valued correctly. In addition to that, consider:

• Whether your policy has flexible payment options that can fit into your financial situation.
• Confirmation of your coverage through a Certificate of Currency.
• The value of your equipment on the market and how it will affect your rental costs if you lodge a claim.
• Guidance in VIM Cover’s Financial Services Guide and access to experienced brokers to help explain your options.

Request a Quote Online for Equipment Insurance

Getting started with VIM Cover is as easy as it gets. You can request a quote online that’s customised to your field and the type of insurance you want. If it is safeguarding for bobcats, a mobile plant, or your business premises, we can source the cover options that fit your precise needs.

First, our specialists understand how you work, ensuring that every policy provides the right protection. So, this is how we help keep your business assets safe while you focus on growing.

Protect Your Business with VIM Cover in 2026

The​‍​‌‍​‍‌ machines and equipment you use are not only your means of work; they are the base on which your success is built. VIM Cover can assist you in navigating available insurance options, reviewing product documentation, and selecting a cover that aligns with your operational requirements.

VIM Cover will assist you in understanding the various policy choices and negotiating reasonably priced insurance backed by a team that has real knowledge of your industry. Make your equipment safe today and keep your enterprise going at full power.

You can obtain quotes from licensed insurance brokers such as VIM Cover.

FAQs

1.​‍​‌‍​‍‌ What kind of losses are covered by equipment insurance? In general, policies may cover at least part of accidental loss, material damage, and theft, as well as the breakdown of machinery and tools needed for your business.

2. Is it possible to ensure hired or rented equipment?

Yes. In the case of a dry hire insurance or hired-in plant cover, you can make borrowed or leased equipment a safe place against any harm or loss.

3. Is such a policy valid for machinery that is used on public roads?

Yes, insurance programs may be extended to cover mobile plant or machinery that is used on or off a public road.

4. How can I obtain an insurance certificate?

You will get a Certificate of Currency showing your coverage when your policy is in ​‍​‌‍​‍‌force.

General Advice Warning:

The information in this article is of a general nature only and does not take into account your objectives, financial situation or needs. You should consider whether this information is appropriate for you and read the relevant Product Disclosure Statement (PDS), Policy Wording and our Financial Services Guide (FSG) before making any decision about insurance products.