Construction equipment is expensive. A single excavator can cost Rs 50 lakh to Rs 2 crore. A tower crane can cost even more. If your machinery breaks down on site, is damaged in an accident, or is stolen, the repair or replacement cost can be enormous.
Contractors plant and machinery insurance, also called CPM insurance, covers your construction equipment against these risks. It pays for repairs or replacement so your project does not stop and your finances are not drained.
Protect your construction machinery with a free CPM quote
CPM insurance is a policy that covers construction equipment and machinery against accidental damage, breakdown, fire, theft, and natural disasters. It protects equipment while it is working on site, stored on site, or being transported between sites.
CPM is different from CAR and EAR insurance. CAR covers the construction project. EAR covers equipment being installed. CPM covers the equipment the contractor uses to do the construction work.
Core Engineering Distinction: CPM protects the working tools of contractors (excavators, loaders, batching plants) throughout project lifecycles, whether operating on-site or shifting across civil contracts.
CPM insurance provides comprehensive cover across a wide spectrum of heavy civil and industrial construction equipment.
Protection spans site accidents, internal component breakdowns, natural calamities, fire, and inter-site transit.
Covers damage from collisions, overturning, falling objects, operator error, and other accidental causes. If an excavator is hit by a truck on site, or if a crane topples during lifting, the insurer pays for repairs.
This optional extension covers sudden and unforeseen breakdowns caused by internal mechanical or electrical failure. If a hydraulic system fails or an engine seizes, the insurer covers the repair cost. Regular maintenance issues and wear and tear are not covered.
Covers damage from fire, explosion, lightning, and self ignition. Construction equipment using diesel and other fuels is at risk of fire, especially in hot weather or when fuel is stored nearby.
Construction sites, especially those not fully secured at night, are vulnerable to equipment theft. CPM insurance covers the full value of stolen equipment if it is not recovered.
Covers damage from floods, storms, cyclones, earthquakes, and landslides. Equipment left on outdoor sites is particularly vulnerable to weather damage during monsoon season.
Many policies cover equipment during transport from one project site to another. Damage during loading, unloading, and road transport is included.
Understanding how equipment insurance (CPM), civil works insurance (CAR), and machinery installation insurance (EAR) complement each other on project sites.
Comprehensive Project Protection: Many contractors need all three types. CPM protects the tools they use. CAR protects the project they are building. EAR protects the equipment they are installing for the client. For broad operational coverage, review our Corporate Insurance solutions.
Heavy machinery operates in tough conditions. Rain, mud, extreme heat, and dust cause accelerated wear and unexpected breakdowns.
CPM premiums depend on the total value of the equipment insured, the type and age of the machinery, the project location and site conditions, whether breakdown cover is included, and the contractor's claims history.
Newer equipment costs less to insure. Older equipment and machinery operating in harsh conditions costs more.
Specialized construction, machinery, and engineering risk advisory
We specialise in construction and engineering insurance. Our IRDAI licensed advisors understand the risks that construction equipment faces on Indian project sites. We compare CPM policies from multiple insurers and help you build coverage that matches your equipment fleet, site conditions, and project requirements. With 5 years of experience, we ensure your machinery investment is protected.
Answers regarding covered equipment types, mechanical breakdown extensions, transit protections, and leased machinery
Protect your construction machinery. Fill out the form or call 90 90 92 15 15 for a free CPM insurance quote based on your equipment list.
Disclaimer: Coverage based on equipment type, value, and site conditions. Wear and tear, gradual deterioration, and regular maintenance issues are not covered.