Most people will regard Contractors Plant & Equipment (CPE) as those items which are used principally at a construction site necessary to assist in the execution of the Contract being undertaken. Yes, that equipment we see regularly when we pass construction sites. As well as those items like mobile cranes that pass us on our roads and motorways.

As you are aware the size and scale of CPE can vary enormously, which of course is dependent upon the nature of contract being performed but typically a classification of plant may be regarded as large, small or non-driven. 

It can range from the large mobile items such as cranes, large excavators, loaders, bulldozers and the like, through to small mobile equipment like mini-excavators, dumpers & forklifts. Non-driven would include items like compressors, cement mixers and site lighting.

Is all the CPE owned by the Contractors at the site?

To answer this question, not necessarily. While much, if not most, of the equipment will be owned by the contractors – including items under hire purchase or lease agreements, which are treated as Owned CPE – there will also be some hired-in plant equipment in operation as well.

What is Hired in Plant ?

Hired in Plant would refer to those items which have been specifically hired in from a plant hirer by the Contractor or Sub Contractor for a specific period of time. 

There are several reasons why a Contractor may choose this course of action. Hired in Plant might only be needed on a couple of jobs a year and is far more cost effective just to hire it in for a specific period, rather than erode working capital in a non-efficient way and buying it. Other hires may just require a little more resource and again hiring proves the best way forward to solve the immediate gap.

What other equipment does the Contractor typically use?

The contractor is likely to own temporary buildings or site huts which can be taken, set up and used at the construction site. This will also include office furniture, fixtures and fittings placed inside of them.

The importance of CPE Insurance can protect you.

Like it or not theft, which is ever increasing, happens in many walks of life. Unfortunately, the construction industry is certainly no different. 

Contractors face threats from person(s) unknown who are as interested in their plant and equipment as they are, ‘you’ve got it – they want it’.  

Theft is one of the main reasons why prudent contractors will seek to arrange CPE insurance. Other heads of claims will be fire, malicious damage, accidental damage, whether through impact or overturning or whilst in transit. 

A contractor without necessary insurance protection for his CPE will unnecessarily expose his balance sheet, possibly his livelihood or credibility when working for others. 

CPE insurance may extend to cover the cost of repairs, replacement of equipment and some additional expenses incurred as a result of equipment-related incidents.

By transferring the financial burden of equipment losses to insurers, contractors can focus on their core activities with peace of mind, knowing that they are covered in the event of many emergencies.

CPE insurance cover is essential for contractors operating in the construction industry. 

CPE insurance at 538 Underwriting – Our team can assist you. 

538 Underwriting underwrites a significant amount of Annual CPE Insurances. 

There are a few key reasons why 538 Underwriting are trusted but principally Contractors/Brokers recognise our expertise and understanding in this arena to provide competitive terms, progressive covers and servicing for a very wide range of CPE, trades and situations. 

This is underpinned by decent levels of capacity that we can offer, for any one item limits to GBP2,000,000 any one item & for all items up to GBP20,000,000 any one occurrence.

View our CPE insurance product here.

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