As Australia enters its season of peak catastrophic events, businesses have been reminded of the need to ensure their assets have adequate insurance cover.
It’s just good practice to ensure that businesses in the earthmoving and related industries are adequately insured for their plant, but surprisingly some companies still either neglect this aspect or do not sign up for enough levels of protection.
Of course, events can occur any time and for any number of reasons, but typically the danger of lack of cover rears its head every year as Australia enters its catastrophic (CAT) weather season from around September to April, when the country is ravaged by events ranging from tropical cyclones and flooding to bushfires.
And if the worst happens, it will be too late for those machinery owners who have literally underestimated the need for underwriting.
Earthmoving Equipment Magazine spoke to National Transport Insurance (NTI) national product manager for mobile plant, David Kidd, and risk engineer Steven Alexander about the importance and benefits of ensuring industrial strength protection for business operations and their equipment.
“Climate change isn’t helping,” David said. “We’re seeing more tropical cyclones and low pressure systems occurring more regularly, and moving further down the east coast, causing more flood related incidents and claims.
“And whilst in the El Nino seasons when the rain isn’t coming, the land turns dry, which then creates bushfire exposures right across the country.
“If you’re not having a wet season in the CAT period, chances are you’re going to have a dry bushfire one.”
And disaster events obviously aren’t restricted to just a particular part of the year. They can happen when least expected, so operators really need to be covered for all periods.
“I think some businesses don’t feel a need to insure their plant because they haven’t had to make a claim, they haven’t had a rollover, they haven’t had damage,” David said.
“It’s one of those things people tend to neglect, particularly in the current economic environment. People are experiencing hardship, and the need to insure their equipment can be pushed to the back burner.
“However, post-COVID, a lot more owner operators are starting to insure their businesses and plant. Whilst more and more principles are also now requiring their contractors to have insurance while they’re on site.”
Steven said having insurance also affords a level of safety for a business’ operations.
“For example, if a whole livelihood runs over, say, two machines and one of them is down, then that will have a major impact — that’s potentially half their income gone,” he said.
“Insurance can help to keep their business going while we either try and fix their machine, or if it’s a total loss, it can be replaced.
“Having insurance may provide an essential safety net for businesses.”
NTI Yellow Cover
With more than five decades of experience in the insurance industry, NTI is a leader in mobile plant and machinery insurance.
Its Yellow Cover package covers the smallest mobile plant item through to the largest and most complex infrastructure projects.
Its Mobile Plant and Equipment Insurance is a comprehensive cover option delivered by a team of mobile plant and equipment insurance experts combined with NTI’s outstanding service, unparalleled expertise, and essential local knowledge that provides industrial strength protection across a complicated and specialised range of exposures.
The general Equipment and Machinery Insurance component is designed to provide protection and comprehensive cover tailored around small to medium business operations, equipment and machinery.
“Very importantly, the policy does not exclude coverage for natural disasters (such as cyclones, floods and bushfires),” David said.
“As we approach the higher risk of catastrophe season, we can assure our policy holders that they have cover if they are affected by any of these exposures.
“Protecting customers’ property and plant, getting them back into production quickly whether by repair, replacement or cash settlement, is NTI’s main priority.
“We’ve taken our wealth of experience, an innovative approach and local expertise across the country to deliver an industry-leading policy for your mobile plant and equipment.
“If you’re an owner-operator, earthmover or civil contractor, work in quarry and mining or farming and agricultural operations, then have a look at our Yellow Cover. We also offer complete cover for the plant and equipment hire industry as well.
“Plus we can tailor cover for specific needs.
“Add to this our award-winning Accident Assist service, the Premium Repairer network, our Repair Guarantee, essential local knowledge from capital cities to regional centres across Australia, and value for money premiums.”
It provides customers with industry-leading products, access to NTI’s award-winning claims solution, a lifetime guarantee on authorised repairs and a team of experts and recovery operators all over Australia.
For example, as one of NTI’s specialised risk engineers, Steven travels around Australia visiting customers onsite as part of the service.
“I try to help our customers understand the exposures and perils of the different occupations, and potential risks,” he said.
“I also coach them through the claims process if needed, highlighting gaps and risk exposures, and consult on machinery maintenance, safety, and implementing a safety culture.”
If you’d like to learn more about risk management and how to protect your business, contact your insurance broker or NTI today. Visit: https://www.nti.com. au/yellow-cover
This information is general only and does not take into account your objectives, financial situation or needs. When making decisions about our insurance, consider the PDS and TMD at nti.com.au. Limits and exclusions apply. National Transport Insurance is an equal joint venture administered on behalf of the insurers (CGU Insurance ABN 11 000 016 722 AFSL 227681 & Vero Insurance ABN 48 005 297 807 AFSL 230859) by its manager NTI Limited ABN 84 000 746 109 AFSL 237246.