MACHINERY ALL RISK INSURANCE
Machinery All Risk Insurance
Machinery and plant exposures should be managed as operational risk — not merely insured as an afterthought.
Machinery All Risk (MAR) insurance provides protection against sudden and unforeseen physical loss or damage to insured plant and machinery, whether at work, at rest, or during maintenance (subject to policy terms and exclusions).
At TIB, we advise contractors, engineering firms, and project operators on structured MAR placement, exposure review, and claims support.
Suitable For:
- Construction contractors
- Civil and infrastructure operators
- Engineering firms
- Companies operating cranes, excavators, piling rigs, generators or heavy equipment
- Businesses with high-value mobile or static plant
Key Underwriting Considerations
Insurers typically assess:
- Type, age and condition of machinery
- Operational environment and site conditions
- Maintenance discipline and servicing records
- Storage arrangements and security controls
- Mobility of plant between project sites
- Claims history and loss trends
Incorrect valuation, incomplete declaration, or poor risk presentation may affect claims outcomes and renewability.
Our Structured Advisory Approach
We assist clients with:
- Reviewing declared machinery schedules and insured values
- Assessing adequacy of sum insured (replacement cost vs book value considerations)
- Reviewing excess positioning relative to operational risk appetite
- Clarifying territorial and transit exposure where equipment moves between sites
- Aligning insurance scope with contractual project requirements
Our focus is on ensuring the policy reflects actual operational exposure — not just meeting tender submission requirements.
Scenarios…
Underinsurance Risk from Book Value Declaration
A contractor insures plant based on depreciated book value rather than reinstatement cost. Following a major equipment loss, recovery is materially reduced due to underinsurance application.
We review valuation methodology at placement stage to reduce exposure to proportional settlement or shortfall risk.
Equipment Mobility Across Multiple Sites
A civil engineering firm relocates heavy machinery between active project sites. Without proper territorial and transit consideration, coverage may not fully align with exposure.
We assess mobility patterns and insurer wording to ensure alignment between declared usage and operational reality.
A contractor insures plant based on depreciated book value rather than reinstatement cost. Following a major equipment loss, recovery is materially reduced due to underinsurance application.
We review valuation methodology at placement stage to reduce exposure to proportional settlement or shortfall risk.
A civil engineering firm relocates heavy machinery between active project sites. Without proper territorial and transit consideration, coverage may not fully align with exposure.
We assess mobility patterns and insurer wording to ensure alignment between declared usage and operational reality.
Claims & Renewal Discipline
MAR claims can be operationally disruptive.
We support clients with:
- Claims notification guidance
- Documentation coordination
- Early renewal review where claims impact underwriting perception
- Structured insurer engagement for continued capacity
Maintaining clear documentation and valuation discipline improves long-term placement stability.
Speak to our Machinery Risk Specialist
If your business operates plant or heavy machinery and you would like a structured review of your current MAR coverage, contact TIB for further discussion.
Get Started Today
Don’t leave your business vulnerable to machinery-related claims. Contact us today to learn more about our Machinery All Risk Insurance and how it can benefit your business. Secure your operations, build consumer trust, and focus on delivering on your services with the confidence that you are protected.
Taking Care Of All Your Risk Management Needs.
Started in the 1960s as an insurance agency, Tan Insurance Brokers is led by a team of extremely experienced and qualified risk managers and advisors and has partnered numerous local and global enterprises for over 5 decades.
At TIB, you always come first. We’ve built our reputation on decades of putting customers first and our experts are always on hand to deliver personalised service and support.
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