Insurers may impose tracking warranties for plant and equipment during the winter holidays. Understanding and complying with these requirements is crucial to maintaining insurance policy coverage, especially for high-value equipment left in vehicles overnight
As the winter break approaches, most construction companies and plant hire contractors will be preparing to cease operations until the new year, bringing plant back to yards and depots or possibly leaving assets on site.
Many contractors will be unaware of the sometimes very strict conditions outlined in their insurance contract written under their Contractors All Risks or a Contractors Plant policy.
If you are leaving sites vacant over the winter holidays, you should check your insurance policy and ensure you are adhering to the terms and conditions. Otherwise, you may not be covered if any incidents occur during this time.
Many insurers require plant and equipment to be secured within a locked building
The most likely restrictions in cover will relate to site security, where you may find that insurers impose onerous restrictions.
For example, many insurers require plant and equipment to be secured within a locked building or a locked compound, with full perimeter protection and padlocking to all access points.
Some insurers will apply tracking and immobilisation warranties for plant and equipment, and it is important to be aware of the exact position and ensure that you are compliant.
High-value equipment, especially that used by surveyors, may be kept in vehicles overnight, and again, there are likely to be theft restrictions and requirements in this respect.
Insurance cover is obviously an option for this situation, but storing such equipment in a secure building is a much better solution, especially over the holiday period.
Such restrictions are now common but are not required by all insurers.
Historically, these terms were identified separately by policy endorsement, but there is a growing trend with some insurers to embed the full wording within the main policy document, making identification more difficult.
Tysers construction team is here to help
If you are unsure about the terms outlined in your policy, Tysers construction team can help by offering a free review of your current policy documents.
We understand that policy documents can be complex and time-consuming to decipher, but our construction experts can break down the jargon into everyday language you can understand. Visit our website to get in touch.
