Contractor’s Plant & Machinery (CPM) Insurance

The execution of almost all projects necessary requires use of various types of plant and machinery. The nature and the type of equipment may differ according to the nature, type and location of a project and may even differ at different stages of the project. Such equipment may comprise of cranes, compressors, road-rollers, vibrators, welding sets, hydraulic excavators and the likes. While it is possible to have the contractor’s Plant and Machinery covered under an EAR or CAR Policy at speciﬁc project sites, Contractors’ Plant and Machinery (CPM) Insurance has been designed to provide a cover on annual basis to a contractor who may be using his plant and machinery at different projects during the course of the year.

Why Choose CPM Insurance?

CPM insurance safeguards valuable machinery — such as cranes, bulldozers, excavators, and compressors — against a wide range of accidental risks.
A key benefit is that coverage applies whether the machines are operating, idle, or temporarily dismantled for cleaning or maintenance, offering peace of mind and financial protection.

Intentional illegal acts or fraud
Personal disputes not related to company duties
Physical injury or property damage
Claims known before policy purchase
Fines or penalties prohibited by law

What Does CPM Insurance Cover?

This policy generally protects machinery against unexpected physical loss or damage caused by:

Accidental and external damage
Fire and explosion
Natural disasters such as storms, floods, cyclones, earthquakes, and similar events
Theft and burglary
Damage occurring during operation
Damage sustained while machinery is being shifted within the site

Your Details

Who Should Consider CPM Insurance?

This policy is suitable for:

Owners, lessors, or hirers of construction machinery
Parties legally responsible for the equipment under hire or lease agreements

What Is Not Covered?

The CPM policy does not normally cover loss or damage arising from:

Damage during transportation outside the project site
Loss occurring during testing
Damage caused by earthquakes (unless specifically covered)
Nuclear risks
Terrorism-related losses
Pre-existing mechanical or electrical defects
Normal inventory shortages
Damage due to machinery being fully or partially submerged in seawater or tidal waters

Optional Add-On Covers

You can enhance your policy by including additional protections, such as:

Third-party liability for injury or property damage
Damage caused to the owner’s surrounding property

Frequently Asked Questions (FAQs)

Who should opt for CPM Insurance?▼

CPM Insurance is ideal for construction contractors, infrastructure and road contractors, builders and developers, equipment rental companies, and mining, excavation, and engineering firms.

Is theft of machinery covered under CPM Insurance?▼

Yes, theft is covered provided there is evidence of forcible and violent entry and the incident isreported to the police immediately.

Can hired or rented machinery be insured?▼

Yes, hired-in or rented machinery can be insured, subject to disclosure and insurer approval.Coverage terms may vary.

How is the sum insured determined?▼

The sum insured is usually based on the replacement value or current market value of themachinery, including freight, customs duty, and installation costs if applicable.

Is CPM Insurance mandatory in India?▼

CPM Insurance is not legally mandatory, but it is often required by project owners, lenders, orgovernment contracts to mitigate financial risk.

Can CPM Insurance be extended with add-on covers?▼

Yes, optional add-ons may include:Third-party liability,Electrical and mechanical breakdown,Owner’s surrounding property,Express freight and overtime charges,Terrorism cover

What documents are required to buy CPM Insurance?▼

Typically required:Machinery details (make, model, year),Purchase invoice or valuation,Site and project details,Past claim history (if any)

Why choose Acuvisor for Contractors’ Plant & Machinery Insurance?▼

Acuvisor helps you compare CPM Insurance policies from top insurers, choose the right coverage, and get expert assistance throughout the policy and claim journey.