Machinery on the move
Machinery is essential equipment for many industries such as construction, mining, and agriculture. Moving these machines from one location to another can be a complex and costly process, which is why insuring them during transportation is vital.
When it comes to insuring your machinery, it's important to consider the risks involved in transporting it.
In New Zealand, most carriers limit their liability to a "limited carriers risk" of $2,000 for each unit of goods lost or damaged under the Contract & Commercial Law Act 2017. This means that if your earthmoving machinery is damaged or lost during transportation, the carrier will only be liable for up to $2,000. This amount may not be enough to cover the full value of your machinery, which could leave you with significant financial losses.
To avoid this, you can opt for additional insurance coverage to protect your machinery during transportation. There are several types of insurance coverage available for machinery, including:
Marine Cargo Insurance: This type of insurance covers the machinery while it's being transported by sea, air, or land. It provides protection against loss or damage due to accidents, theft, and other risks. Typically this type of cover is used for static machinery that was once covered by a material damage policy.
Comprehensive Vehicle/Machinery Insurance: This is a comprehensive insurance policy that covers all risks associated with transporting your machinery. It provides protection against loss or damage due to accidents, theft, natural disasters, and other risks.
It's essential to understand the coverage options and limitations available so speak with your broker today and discuss how your machinery is been transported with your carrier.