Since our July update, the plant and equipment insurance market has softened, particularly benefiting policyholders with well-managed fleets. Policyholders who have implemented effective strategies to mitigate losses are seeing positive responses from insurers such as better policy conditions, longer indemnity periods for downtime, improved retention structures, and reduced premiums.
The previous supply chain disruptions that created high demand and pressure on the used equipment market are easing. This is due to a strong inflow of new equipment into Australia, providing much-needed relief to customers.
For businesses that have experienced claims, there may be some increase in premiums. However, the severity of these increases is mitigated if policyholders can demonstrate that following a claim, they have developed and implemented strategies to prevent future claims or improve loss trends.
We continue to stress the importance of the following risk mitigation strategies for operators and hirers:
- GPS tracking and remote shut down technologies
- Front and rear facing cameras in road going units
- Operator training
- Equipment maintenance programmes
- Ensuring equipment is secured from theft or damage whilst not in use.
We continue to observe the ongoing issue of the undervaluation of machinery – it remains imperative that policyholders obtain accurate market values and replacement costs to avoid underinsurance and shortfalls in the event of a claim.
For peace of mind and to ensure adequate coverage, we recommend engaging an independent valuer to determine the value of your plant and machinery and confirm sufficient sums insured.
Challenges also remain for cranes and machinery used underground which continue to attract higher rates and have fewer insurer options available. The reinsurance market for crane liability remains particularly challenging, with limited options for insurers and agencies.
To optimise your plant and equipment coverage and ensure accurate valuations in today’s market, speak to your Bellrock Advisor.
Continue reading our full range of market updates:
- Insurance Market Overview
- Property
- Commercial General Liability
- Motor
- Contractors Plant & Equipment
- Strata
- Claims
- Workplace Risk
- Executive & Professional Risk
- Construction