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Easy methods to ensure your valuable equipment

Civilsure understands the importance and necessity of comprehensive plant insurance at a reasonable rate. We also know that you expect impeccable service and attention to detail at claims stage. That is why we are committed to helping you choose the correct plant all risk (PAR) for your business needs.

PAR covers mobile and stationary plant while in operation or at rest on site and there are three ways in which you can insure your plant.

    Letter of Intent

    New replacement value (NRV)

    This requires input from suppliers regarding replacement value, including all other relevant costs. An average will apply if the sum insured is less than the replacement cost. In the case of a total loss, the insurer will pay the market replacement value of the item prior to the loss thereof. New parts may be claimed for old and no depreciation will be applied. Values must be updated regularly as suppliers increase their rates and value may be difficult to establish if a particular model has been discontinued. Transport and towing costs are also limited.

    Agreed value (AV)

    This is the value as agreed upon between the insurer and the insured. Including VAT, it should not be less than market value, but also not more than 20% above market value. In case of total loss, the insurer will pay the AV and partial damage, and depreciation of new parts will apply. The depreciation of new parts often causes frustration as it reduces the amount claimed. On the other hand, claims for second-hand parts are not subject to depreciation. Averages do not apply and transport and towing costs are limited.

    Market value (MV)

    MV means that the insured sum must equate the amount necessary to purchase property identical to the item insured and all relative expenses. If an identical replacement is not available, MV will replace it with one of a similar type, capacity, age, usage, maintenance, refurbishment and overhaul record. This type of insurance considers the individual condition of the plant and those under which it operates, and what the market would be willing to play for the item. The Loss Adjustor will apply depreciation to new parts in the event of a partial claim and, in case of a total loss, the insurer will pay the market value of the item prior to the loss thereof. If market value cannot be determined, the insurer will depreciate the new replacement value.

    Establishing market value is challenging and often results in the insured being either under- or over insured. If underinsured, an average will be applied, meaning that values must be updated regularly. Partial damage will incur depreciation on new parts and often causes frustration as the claim amount is often reduced in these cases. Transport and towing costs are limited.

    As with many things in life, there are extensions available and certain conditions apply. Contact us to discuss which method of insuring your plant is best for your business.

    CivilSure provides niche risk solutions to the construction and civils industry. We pride ourselves on delivering world class customer-centric services and specialist advice. We specialise in Construction Guarantees, Contractors’ All Risk Insurance, Construction Liability, Professional Indemnity and Plant All Risk Insurance.

    Trusted. Reliable. Partner. Since 2005.

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