Plant and Equipment Insurance

About This Policy

This policy insures mobile plant and equipment, such as excavators, loaders, cranes, telehandlers, skid steers, generators, compressors and their attachments, whether the plant is owned, financed, hired in or hired out. It has four sections. The schedule shows which apply.

Material Damage applies whenever the schedule shows an item of insured plant. Hired-In Plant, Machinery Breakdown and Mobile Plant Liability apply only if the schedule shows them as included.

All risks. Material Damage covers accidental loss or damage from any cause that is not excluded. It does not list the events that are covered. Where we rely on an exclusion, we must show that it applies.

Other policies. Road risk for registered plant driven as transport on a public road belongs under a commercial motor policy (see the Road Use as Transport exclusion). Plant at a construction site may also be insured under a contract works policy; where both respond, the Other Insurance provision applies.

This policy, together with the schedule, the proposal and any endorsements shown in the schedule, forms your contract of insurance with us. Read them together and tell us if anything is incorrect. Where the schedule and this wording differ, the schedule applies. Words with special meanings are listed in the Definitions section.

Version and Document History

This document is version-controlled. The version and date shown on the cover page and in the footer of each page govern this text. The version stated in the schedule as current at the start of the policy period applies for the whole policy period, unless the schedule or an endorsement states otherwise.

Important Information

Who issues this policy. The insurer, its Australian Financial Services Licence and its contact details are shown in the schedule. Where the insurer subscribes to the General Insurance Code of Practice, the schedule says so.

Who this policy is for. This wording is designed for businesses that own, hire or operate mobile plant and equipment, and for distribution to wholesale clients within the meaning of s.761G of the Corporations Act 2001 (Cth). It is not a Product Disclosure Statement, and no Target Market Determination has been prepared for it. An insurer that offers it to retail clients must first prepare the documents the law requires for retail distribution.

[WP REVIEW: confirm that cover for a registered item of plant with a carrying capacity of 2 tonnes or less, insured by an individual or a small business, may be a motor vehicle insurance product and so a retail product under s.761G(5) of the Corporations Act 2001 (Cth) and reg 7.1.11 of the Corporations Regulations 2001 (Cth), and what this wording needs if it is offered to that market.]

Your duty of disclosure. Before you enter into, renew, extend, vary or reinstate this policy, s.21 of the Insurance Contracts Act 1984 (Cth) requires you to tell us every matter you know, or that a reasonable person in your circumstances could be expected to know, that is relevant to our decision whether to insure you and on what terms. You do not need to tell us anything that reduces the risk, that is common knowledge, that we know or should know as an insurer, or that we waive. If you do not comply, we may reduce or refuse a claim, or cancel the policy, as that Act allows. If the non-disclosure is fraudulent, we may avoid the policy from its beginning.

Terrorism. This policy may be an eligible insurance contract under the Terrorism Insurance Act 2003 (Cth). Where it is, the Terrorism exclusion has no effect for loss or liability arising from a declared terrorist incident affecting eligible property in Australia, and our liability may be reduced by any reduction percentage declared under that Act. [WP REVIEW: confirm whether mobile plant and equipment is eligible property under the Terrorism Insurance Act 2003 (Cth) and the Terrorism Insurance Regulations, and so whether this notice is needed.]

Financial Claims Scheme. If the schedule shows the insurer is an APRA-authorised general insurer, you may be entitled to a payment under the Financial Claims Scheme if the insurer becomes insolvent. Information is available at www.fcs.gov.au.

Schedule

(Completed separately for each policy. It contains your specific details.)

The schedule shows:

• The named insured and its ABN, its business and its address
• The policy period
• The plant schedule: for each item of specified plant, its description, serial or registration number and year; its basis of settlement (market value or agreed value); its sum insured or agreed value; its excess; any financier; and whether it is hired out, and if so on dry hire or wet hire
• The unspecified plant sum insured and the most we pay for any one item of unspecified plant
• The limits of the extensions to Material Damage where they differ from the defaults stated in them, and whether the hire costs benefit applies
• For Hired-In Plant: the limit for any one item, the limit for any one event, the continuing hire charges limit and the excess
• For Machinery Breakdown: the items of specified plant that have breakdown cover and the excess
• For Mobile Plant Liability: the limit for any one occurrence, any sub-limits that differ from the defaults stated in this wording and the excess
• The geographical limits, if they differ from the default in the definition
• The premium, with stamp duty, any emergency services or fire services levy, and GST
• Any commission or fee paid to your broker
• The insurer and its licence, and the state or territory whose law governs this policy (see the Governing Law condition)
• The endorsements that apply, by code, with their variables

Definitions

In this policy, the words below have these meanings wherever they appear, whatever their capitalisation. The singular includes the plural.

Material Damage

This section applies to every item of insured plant. The schedule shows the plant schedule, the unspecified plant sum insured and the excesses.

Damage to Insured Plant

We will pay for accidental loss or damage to insured plant that happens during the policy period within the geographical limits, from any cause that is not excluded, including while the plant is:

• at your premises or at any work site;
• in transit by road, rail or inland waterway anywhere within the geographical limits, including while being loaded and unloaded;
• temporarily stored anywhere within the geographical limits; and
• being operated, tested, maintained or left unattended.

We pay as set out in the Basis of Settlement provision. The extensions to this section are paid in addition to the sum insured of the item, unless an extension says otherwise.

Basis of Settlement

Market value. Unless the schedule shows agreed value for an item, we will repair the item or pay the reasonable cost of repairing it, up to its market value immediately before the loss. For a total loss, we pay the market value of the item, up to its sum insured. We make no deduction for depreciation on parts used in a repair, except for wear parts, which we settle less an allowance for the wear they had already had.

Agreed value. Where the schedule shows agreed value for an item, we will repair it or pay the reasonable cost of repairing it, up to the agreed value. For a total loss, we pay the agreed value.

New plant replacement. If an item of specified plant is a total loss within 12 months of its first registration or first use as new, we will replace it with a new item of the same make, model and specification, or the nearest equivalent, up to 120% of its sum insured.

Salvage and excess. For a total loss, we deduct the excess, and the Salvage provision applies.

No average. If the sum insured of an item is less than its value, we do not reduce the amount we pay for a partial loss in proportion.

Recovery Costs

We will pay the reasonable costs of recovering an item of insured plant that is bogged, sunk, overturned or stranded during the policy period, whether or not it is damaged, up to $25,000 for any one event, or the amount shown in the schedule. Where the item is damaged by accidental loss or damage covered by Damage to Insured Plant, the recovery costs are part of that claim and this limit does not apply to them.

Expediting Costs

We will pay the reasonable extra costs of overtime, night and holiday work and express freight to speed up the repair of insured plant after loss or damage covered by Damage to Insured Plant, up to 50% of the cost of the repair, and no more than $50,000 for any one event, or the amount shown in the schedule.

Newly Acquired Plant

Mobile plant and equipment that the named insured buys, or takes on a lease for which it is responsible as owner, during the policy period is insured plant for 30 days from the date it takes responsibility for it, up to $500,000 for any one item, or the amount shown in the schedule. The named insured must tell us about the item within those 30 days and pay any additional premium we reasonably charge, for cover to continue after them.

Attachments and Accessories

An attachment is insured with the item of specified plant it is declared with, whether or not it is fitted to that item at the time of the loss. An attachment not declared with an item is unspecified plant.

Appreciation in Value

If the market value of an item of specified plant has risen since the start of the policy period, we will treat its sum insured as increased by the amount of that rise, up to 15% of its sum insured, or the percentage shown in the schedule. This extension does not apply to an item insured for agreed value.

Hire Costs Following Insured Damage

If the schedule shows that this extension applies and an item of specified plant cannot be used because of loss or damage covered by Damage to Insured Plant, we will pay the reasonable cost of hiring a substitute item while the item is being repaired or replaced, up to $5,000 a week for up to 26 weeks for each item, or the amounts shown in the schedule. We do not pay for the first 72 hours after the loss or damage.

Employees' Tools and Effects

We will pay for accidental loss or damage to the tools and personal effects of the named insured's employees while on or in an item of insured plant, up to $5,000 for any one event, or the amount shown in the schedule, where the loss or damage happens at the same time as loss or damage to that item covered by Damage to Insured Plant, or by theft of that item.

Re-Erection and Repositioning Costs

We will pay the reasonable costs of dismantling, re-erecting or repositioning insured plant that is necessary to repair damage covered by Damage to Insured Plant, up to $25,000 for any one event, or the amount shown in the schedule.

Removal of Debris

We will pay the reasonable costs of removing debris of insured plant, and of demolishing and making safe damaged insured plant, after loss or damage covered by Damage to Insured Plant, up to $100,000 or 20% of the amount we pay for that loss or damage, whichever is greater, for any one event, or the amount shown in the schedule.

Lock and Key Re-Coding

If the keys, or the electronic key or code, of an item of insured plant are stolen during the policy period, we will pay the reasonable cost of replacing them and of re-coding or replacing the locks and immobiliser, up to $10,000 for any one event, or the amount shown in the schedule.

Fire Brigade and Extinguishment Charges

We will pay the charges a fire or emergency service lawfully imposes for attending a fire or other incident involving insured plant, and the cost of replacing fire extinguishing agents used to protect insured plant, up to $50,000 for any one event, or the amount shown in the schedule.

Unspecified Plant

Unspecified plant is insured up to the unspecified plant sum insured shown in the schedule for any one event (default $350,000), and up to the most we pay for any one item shown in the schedule (default $25,000). Unspecified plant is settled on market value. The exclusion headed Theft from Unattended Sites applies to it.

Hired-Out Plant: Dry Hire and Wet Hire

The schedule shows whether each item of specified plant is hired out, and on what basis.

Wet hire. While an item is on wet hire, Material Damage continues to apply to it without change.

Dry hire. While an item is on dry hire, Material Damage continues to apply to it if the named insured:

• hires it out under a written hire agreement that makes the hirer responsible for loss of or damage to it while on hire;
• obtains and keeps a record of the hirer's identity, licence and address before the plant leaves its control; and
• does not give up its right to recover from the hirer, except under a damage waiver whose terms the named insured has told us about.

If the named insured does not do these things, the Insurance Contracts Act 1984 (Cth) condition applies to our response. Our right to recover from the hirer is preserved, except to the extent of a damage waiver the named insured has told us about.

Mechanical and Electrical Breakdown

Under Material Damage, we do not pay for breakdown of an item of plant, unless the breakdown is itself caused by accidental loss or damage covered by that section. We do pay for accidental loss or damage to other parts of the item, or to other insured plant, that a breakdown causes. Breakdown can be insured under Machinery Breakdown.

Wear and Tear

We do not pay for wear and tear, gradual deterioration, rust, corrosion, cavitation, erosion or an inherent defect. We do pay for sudden accidental loss or damage to other insured plant, or to other parts of the item, that results from one of these.

Wear Parts

We do not pay for loss or damage confined to wear parts, unless other parts of the item suffer accidental loss or damage covered by Damage to Insured Plant at the same time.

Overload and Testing

We do not pay for damage caused by deliberately loading or operating plant beyond the manufacturer's rated capacity, or by testing it beyond its design limits, unless the overload was reasonably necessary in an emergency to protect life or property.

Waterborne and Airborne Plant

We do not pay for loss or damage to plant while it is waterborne, except while on a licensed vehicle ferry or punt crossing inland waters, or while it is airborne, except while carried as cargo by a licensed carrier. Endorsement E11 changes this exclusion where it applies.

Underground and Tunnelling

We do not pay for loss or damage to plant while it is underground, in a tunnel, or in an unsupported excavation deeper than 3 metres. Endorsement E01 changes this exclusion where it applies.

Unexplained Shortage

We do not pay for unexplained disappearance, or for a shortage found only when stock or records are checked, where there is no evidence of theft or of another cause of loss.

Theft from Unattended Sites

We do not pay for theft of unspecified plant left at an unattended site, unless the plant was immobilised, locked in a vehicle or secure container, kept in a locked compound, or secured in an equivalent way. This exclusion does not apply to specified plant; the Reasonable Precautions obligation applies to all insured plant.

Consequential Loss

We do not pay for loss of use, loss of income or profit, delay, penalties under any contract, or any other consequential loss, except as the Hire Costs Following Insured Damage extension provides.

Hired-In Plant

This section applies only if the schedule shows it as included. The schedule shows its limits and excess.

Loss of or Damage to Hired-In Plant

If hired-in plant suffers accidental loss or damage during the policy period within the geographical limits while in the named insured's care, custody or control, we will pay:

• the amount the named insured is legally liable to pay to the owner for the loss or damage, including liability it has taken on under the hire agreement;
• continuing hire charges, up to the continuing hire charges limit shown in the schedule; and
• the owner's reasonable recovery, salvage and towing costs that the named insured is liable to pay.

Hired-In Plant Limits

The most we pay under Hired-In Plant is the limit for any one item, and the limit for any one event, shown in the schedule (defaults $500,000 for any one item and $1,000,000 for any one event). Continuing hire charges are paid within these limits, up to $5,000 a week, or the amount shown in the schedule.

If the named insured hires in an item whose replacement value is more than the limit for any one item, it must tell us before the hire starts. We may agree to increase the limit for that item, for an additional premium.

Hired-In Plant: What Is Not Covered

Under Hired-In Plant, we do not pay for:

• breakdown or wear of hired-in plant that the named insured did not cause;
• hire charges for any period after the hired-in plant is repaired, replaced or settled;
• liability under a hire agreement that makes the named insured responsible for loss or damage whatever its cause, to a standard beyond that of a reasonable bailee, unless the named insured told us about the agreement before the loss; or
• anything excluded by the exclusions to Material Damage, read as if hired-in plant were insured plant.

Machinery Breakdown

This section applies only if the schedule shows it as included, and only to the items of specified plant that the schedule shows as having breakdown cover.

Breakdown of Specified Plant

We will pay for the sudden and unforeseen breakdown, during the policy period and within the geographical limits, of an item of specified plant that the schedule shows as having breakdown cover.

Breakdown Settlement

We pay the reasonable cost of repairing the item, or of replacing the damaged parts with parts of equivalent specification, up to the sum insured of the item, less:

• an allowance for wear parts, and for parts with a limited working life, for the wear they had already had; and
• the excess for Machinery Breakdown shown in the schedule.

We pay for loss of oils, coolants and refrigerants only where it results from a breakdown we pay for.

Machinery Breakdown: What Is Not Covered

Under Machinery Breakdown, we do not pay for:

• gradual deterioration, or a fault that existed at the start of the policy period and that the named insured knew about or could reasonably have been expected to know about;
• breakdown caused by a failure to maintain the item as its manufacturer's maintenance schedule requires;
• breakdown caused by interfering with, or removing, a safety device;
• wear parts and consumables themselves; or
• repairs that the manufacturer or supplier is responsible for under a warranty or recall. If they refuse or delay, we will pay the claim and recover from them in the named insured's name.

Mobile Plant Liability

This section applies only if the schedule shows it as included. It is designed for plant that is not registered for use on a public road, so that no compulsory third party or motor policy responds, and for the tool of trade risk of registered plant.

Liability to Third Parties

We will pay the amounts an insured becomes legally liable to pay as compensation for:

• personal injury; and
• property damage,

that happens during the policy period within the geographical limits and arises from an occurrence in connection with the ownership, operation or use of insured plant, including its use as a tool of trade.

The most we pay for any one occurrence is the limit shown in the schedule for Mobile Plant Liability (default $20,000,000). The sub-limits in the extensions to this section are part of that limit.

Defence Costs

We will pay defence costs for a third-party claim covered by Liability to Third Parties. Defence costs are paid in addition to the limit. If the amount needed to settle a third-party claim is more than the limit, we pay the defence costs incurred before we offer or pay the limit, and only in the proportion that the limit bears to the amount of the settlement or judgment.

We may take over the defence and settlement of any third-party claim in the insured's name.

Who Is Insured

For Mobile Plant Liability, each of the following is an insured:

• the named insured;
• any person operating insured plant with the named insured's permission; and
• any principal of the named insured, but only for its vicarious liability for the named insured's operation of insured plant.

Each insured is treated as if it had a separate policy, except that the limit is not increased by the number of insureds. An exclusion that applies because of one insured's knowledge or conduct applies only to that insured.

Underground Services

We pay for liability for property damage to underground pipes, cables, conduits and other services, including the loss that the owner of the services suffers as a result, only if, before the work began, the insured:

• obtained current plans of the services, for example through Before You Dig Australia;
• confirmed the location of the marked services by sight, or by potholing; and
• followed any conditions that the owner of the services imposed.

The most we pay for any one occurrence under this extension is $2,000,000, or the amount shown in the schedule.

Vibration and Removal of Support

We pay for liability for property damage caused by vibration, or by the weakening or removal of support of land or buildings, if a competent person assessed the work method as suitable before the work began. The most we pay for any one occurrence under this extension is $2,000,000, or the amount shown in the schedule. We do not pay the cost of strengthening or underpinning land or buildings unless it is needed to repair property damage we pay for.

Goods Lifted

We pay for liability for property damage to goods being lifted, lowered or carried by insured plant, if a competent person planned and rigged the lift and it was within the plant's rated capacity. The most we pay for any one occurrence under this extension is $500,000, or the amount shown in the schedule. We do not pay for damage to property owned by an insured.

Sudden Pollution

We pay for liability for personal injury or property damage caused by the discharge, dispersal, release or escape of a pollutant that is sudden, identifiable, unintended and unexpected, and happens at a specific time and place during the policy period. The most we pay for any one occurrence, and in total for the policy period, under this extension is $1,000,000.

Injury to Workers and Injury Covered by CTP

Under Mobile Plant Liability, we do not pay for:

• personal injury to any person that is covered, or would be covered but for a failure to insure or register, by compulsory third party motor insurance or a statutory motor accident scheme; or
• personal injury to an employee of an insured arising from their employment, or for which workers' compensation insurance, or a workers' compensation scheme, responds or is required by law to respond.

Road Use as Transport

Under Mobile Plant Liability, we do not pay for liability arising from the use of insured plant as a registered vehicle driven as transport on a public road. A commercial motor policy is the place to insure that risk. This exclusion does not apply to the use of registered plant as a tool of trade. Endorsement E07 changes this exclusion where it applies.

Own Property

Under Mobile Plant Liability, we do not pay for property damage to property owned by, leased to, or in the physical or legal control of an insured, except as the Goods Lifted extension and Hired-In Plant provide.

Aircraft and Watercraft

Under Mobile Plant Liability, we do not pay for liability arising from the ownership, operation or use of any aircraft, watercraft or hovercraft.

Pollution

Under Mobile Plant Liability, we do not pay for liability arising from the discharge, dispersal, release or escape of a pollutant, except as the Sudden Pollution extension provides.

Contractual Liability

Under Mobile Plant Liability, we do not pay for liability that an insured takes on under a contract or agreement, to the extent it is greater than the liability the insured would have had without it. This exclusion does not apply to the usual terms of a hire agreement, a site access agreement or a construction contract.

Fines and Penalties

Under Mobile Plant Liability, we do not pay fines, penalties, or aggravated, punitive or exemplary damages, or the costs of defending a prosecution, unless the schedule or an endorsement says otherwise.

Asbestos

Under Mobile Plant Liability, we do not pay for liability arising from asbestos or any material that contains asbestos.

Payment Provisions for All Sections

These provisions apply to every section.

Limits

The most we pay for an item of specified plant under Material Damage is its sum insured or agreed value, adjusted as the Basis of Settlement provision and the Appreciation in Value extension allow, plus the amounts the extensions to that section say are payable in addition. The most we pay for unspecified plant is set by the Unspecified Plant extension. The limits for the other sections are in the Hired-In Plant Limits provision, the Breakdown Settlement provision and the Liability to Third Parties clause.

Excess

For each claim, the named insured bears:

• under Material Damage, the excess shown in the schedule for each item that suffers loss or damage, for each event;
• under Hired-In Plant, the excess for that section shown in the schedule, for each event;
• under Machinery Breakdown, the excess for that section shown in the schedule, for each breakdown; and
• under Mobile Plant Liability, the excess for that section shown in the schedule, for each occurrence. Defence costs are not subject to the excess.

The schedule or an endorsement may show additional excesses. Where more than one excess applies to the same item for the same event, only the highest is deducted.

One Section for Each Loss

We pay any one loss, breakdown or liability under one section only. Where Material Damage and Machinery Breakdown could both respond to damage to the same item from the same cause, we pay under Material Damage, and only one excess applies.

Who We Pay

We pay the named insured, or the person the named insured directs. Where the schedule shows a financier for an item, the Financier Interests condition applies to payments for that item. Under Mobile Plant Liability, we may pay the third party, or its lawyers, directly.

GST

Where the named insured is entitled to an input tax credit for the GST on a repair, replacement or other payment, we reduce our payment by the amount of that credit, as A New Tax System (Goods and Services Tax) Act 1999 (Cth) allows. The named insured must tell us its entitlement to input tax credits when it makes a claim.

Other Insurance

If a loss covered by this policy is also covered by another insurance policy, including a contract works policy covering the same plant at a construction site, we will not refuse or reduce our payment because of that other insurance. We may seek contribution from the other insurer as the law allows. Tell us about the other insurance when you claim. This does not apply where the schedule or an endorsement states that this policy is excess of a specified underlying policy, in which case this policy pays only after the limit of that specified policy is exhausted.

Salvage

If we pay a total loss for an item, the item belongs to us, subject to the interest of any financier. Before we dispose of it, we will offer it to the named insured at its salvage value.

Exclusions for All Sections

These exclusions apply to every section.

War

We do not pay for any loss, damage, liability or cost arising from war, invasion, act of foreign enemy, hostilities or warlike operations (whether war is declared or not), civil war, rebellion, revolution, insurrection, military or usurped power, or confiscation by a government or public authority.

Nuclear

We do not pay for any loss, damage, liability or cost arising from ionising radiation, or contamination by radioactivity, from any nuclear fuel or nuclear waste, or from the radioactive, toxic, explosive or other hazardous properties of any nuclear assembly or component.

Terrorism

We do not pay for any loss, damage, liability or cost arising from an act of terrorism, meaning an act, including the use of force or violence or the threat of it, by any person or group, committed for political, religious, ideological or similar purposes, including the intention to influence a government or to put the public in fear. This exclusion has no effect to the extent the Terrorism Insurance Act 2003 (Cth) requires cover to be provided.

Cyber Events

We do not pay for any loss, damage, liability or cost arising from a cyber event. This exclusion does not apply to physical loss of or damage to insured plant that a cyber event directly causes, or to personal injury or property damage under Mobile Plant Liability that a cyber event directly causes. Endorsement E12 changes this exclusion where it applies.

Your Obligations

These obligations apply to every section. The Insurance Contracts Act 1984 (Cth) condition governs how we respond if one is not met.

Telling Us About Claims

The insured must tell us as soon as reasonably practicable about any loss, theft, breakdown or occurrence that may give rise to a claim, and send us any third-party claim as soon as it is received. Theft and malicious damage must be reported to the police. The insured must give us the information and help we reasonably ask for, and keep damaged plant and parts available for inspection until we have had a reasonable chance to inspect them.

Admissions

An insured must not admit liability for, offer to settle, or settle any third-party claim without our written consent, which we do not unreasonably withhold. Giving first aid, or taking reasonable emergency measures to protect people or property, is not an admission.

Reasonable Precautions

The insured must take reasonable precautions to prevent loss, damage, breakdown and injury, including:

• maintaining insured plant as its manufacturer's maintenance schedule requires, and keeping maintenance records;
• using operators who hold any licence the law requires, or whose competence can be verified;
• complying with high risk work licensing and work health and safety laws; and
• securing plant when it is left unattended, by immobilising it, removing its keys, or keeping it in a locked compound where reasonably practicable.

Telling Us About Changes

The named insured must tell us within 30 days if, during the policy period, it starts to hire plant out on dry hire, starts operations underground, in tunnels, on or over water, or in demolition, or starts operating outside the geographical limits. We may change the premium or terms for the rest of the policy period, as the Insurance Contracts Act 1984 (Cth) allows.

Recovery Rights and Subrogation

After we pay a claim, we may take over the insured's rights to recover from anyone else, in the insured's name, and the insured must cooperate with us. We will not seek to recover from:

• a hirer, principal or other party that the insured was required, by a written contract made before the loss, to hold harmless or release, if the contract or damage waiver was disclosed to us or is usual for the insured's business; or
• an employee of the insured, unless the loss arose from the employee's serious or wilful misconduct.

General Conditions

These conditions apply to every section.

Insurance Contracts Act 1984 (Cth)

Nothing in this policy excludes, restricts or modifies the operation of the Insurance Contracts Act 1984 (Cth). Where this policy is inconsistent with the Act, the Act prevails.

If this policy would otherwise let us refuse to pay a claim, in whole or in part, because of something an insured did or did not do after this policy was entered into, section 54 of the Act applies. We may not refuse to pay the claim only because of that act or omission. Our liability is reduced by the amount that fairly represents the extent to which our interests were prejudiced. Where the act or omission could reasonably be regarded as capable of causing or contributing to the loss, we may refuse to pay only the part of the claim that the act or omission caused or contributed to. We may not refuse any part that the insured proves the act or omission did not cause. This applies to every condition, exclusion, limit and obligation in this policy, not only to the claims conditions.

Inspection

We may inspect insured plant, and the named insured's maintenance and hire records, at any reasonable time, after giving reasonable notice.

Cancellation

The named insured may cancel this policy at any time by telling us. We refund the premium for the unexpired policy period on a pro-rata basis, less any non-refundable government charges. If we have paid a total loss of an item, no refund applies to the premium for that item.

We may cancel this policy only as the Insurance Contracts Act 1984 (Cth) allows, by giving the named insured written notice as that Act requires. We refund the premium for the unexpired period on a pro-rata basis.

Cancellation does not affect a claim for loss, damage, breakdown or an occurrence that happened before it took effect.

Financier Interests

Where the schedule shows a financier for an item, we pay the financier first, to the extent of its interest, and that payment discharges us to that extent. A financier's interest is not affected by an act or omission of the named insured that the financier did not know about, if the financier tells us as soon as it becomes aware of it and pays any additional premium we reasonably require.

Fraud

If a claim is made fraudulently, we may refuse to pay it, as s.56 of the Insurance Contracts Act 1984 (Cth) allows. A fraudulent claim by one insured does not affect the cover of any other insured who was not a party to the fraud.

Sanctions

We do not provide cover, pay any claim or provide any benefit under this policy to the extent that doing so would expose us to any sanction, prohibition or restriction under:

• the Autonomous Sanctions Act 2011 (Cth), the Charter of the United Nations Act 1945 (Cth), or regulations made under either Act; or
• the trade or economic sanctions laws of the United Kingdom, the United States of America or the European Union, to the extent they apply to us.

[WP REVIEW: confirm that naming the UK, US and EU regimes is appropriate for Australian capacity; this is a deliberate library-wide scope choice.]

Privacy

We collect, use and disclose personal information as the Privacy Act 1988 (Cth) allows, and as our privacy policy describes. Our privacy policy is available from us on request.

Disputes and Complaints

If you have a complaint, contact us first. We will acknowledge it within one business day and give you our response within 30 calendar days. If you are not satisfied with our response, or we do not respond within that time, you may refer the complaint to the Australian Financial Complaints Authority (AFCA), if it falls within AFCA's rules: www.afca.org.au, 1800 931 678, info@afca.org.au.

Governing Law

This policy is governed by the law of the Australian state or territory shown in the schedule. If none is shown, it is governed by the law of the state or territory of the named insured's address shown in the schedule at the start of the policy period.

Jurisdiction

Each insured and we submit to the jurisdiction of the courts of the state or territory whose law governs this policy, and of any court that may hear appeals from them.

Headings and References

Headings are for convenience only. A reference to legislation includes any legislation that amends or replaces it. A reference to a clause by its heading is a reference to that clause as it appears in this wording.

How to Make a Claim

1. Make the plant and the site safe, and take reasonable steps to prevent further loss or damage.
2. Contact your broker, or contact us directly at the details shown in the schedule.
3. Tell the police about any theft or malicious damage, and keep the report number.
4. Tell us what happened and when, and give us photographs, repair quotes, invoices, maintenance records and any hire agreement that applies.
5. For a third-party claim, send us the demand or court documents as soon as they are received, and do not admit liability (see the Admissions obligation).
6. We will acknowledge the claim, keep you informed, and tell you our decision as the General Insurance Code of Practice requires where the insurer subscribes to it.

Endorsement Library

An endorsement applies only if its code is shown in the schedule. Each endorsement changes this policy only as it states, and is read together with the variables shown for it in the schedule. Where an endorsement and the rest of this policy conflict, the endorsement applies to the extent of the conflict. If a variable an endorsement needs is not shown in the schedule, the default stated in the endorsement applies; if it has no default, the endorsement does not apply until we show the variable in the schedule. These endorsements are for use with this wording at version 1.1.x.

E01 Underground, Tunnelling and Deep Excavation Plant

The Underground and Tunnelling exclusion does not apply to the items of specified plant named in the schedule for this endorsement, while they work underground, in a tunnel or in an excavation, if:

• the work has a ground support, ventilation and gas monitoring plan prepared by a competent person, as the work health and safety laws that apply require; and
• the plant is fitted with the fire suppression and protective structures that those laws, or the site operator, require for underground work.

We do not pay for loss or damage caused by the collapse of an excavation or tunnel where the ground support in the plan was not in place.

The underground excess shown in the schedule applies to loss or damage that happens underground, in a tunnel or in an excavation, instead of the item's excess, where it is higher. The recovery costs limit in the Recovery Costs extension is increased to the amount shown in the schedule for this endorsement for plant recovered from underground or from a tunnel.

Schedule variables: items covered; underground excess (default 10% of the loss, minimum $10,000); underground recovery costs limit (default $100,000 for any one event).

E02 Cranes

This endorsement applies to every crane that is insured plant, and to any item of plant used to lift a suspended load.

Lifting conditions. Each lift must be:

• made by an operator who holds the high risk work licence that the law requires for that crane;
• planned by a competent person using the crane's load chart for the radius, configuration and ground conditions; and
• made with outriggers or stabilisers deployed on ground or mats assessed as able to bear the load, and within the wind limits set by the crane's manufacturer.

A dual or tandem lift, in which more than one item of plant shares a load, must also follow a written lift plan approved by a competent person before the lift.

The Insurance Contracts Act 1984 (Cth) condition governs our response where a lift did not meet these conditions.

Overturning. Accidental loss or damage to a crane caused by its overturning, or by the collapse of its boom or jib, is covered under Damage to Insured Plant, and the crane excess shown in the schedule applies to it.

Goods lifted. The limit in the Goods Lifted extension is increased to the amount shown in the schedule for this endorsement.

Schedule variables: cranes covered, with their rated capacity; crane excess (default twice the item's excess); goods lifted limit (default $1,000,000 for any one occurrence).

E03 Piling and Foundation Rigs

This endorsement applies to each piling rig, drilling rig and other foundation rig that is insured plant.

Working platform. A rig must work only on a working platform designed by a competent person for the rig's bearing pressures, with a working platform certificate in place before the rig moves onto it. We do not pay for loss or damage caused by the rig overturning, or by the platform failing, where no working platform certificate was in place.

Tools in the ground. We do not pay for the loss of augers, casings, drill strings, hammers or other tools left in the ground, or the cost of recovering them, unless the schedule shows a limit for this endorsement.

The rig excess shown in the schedule applies instead of the item's excess, where it is higher.

Schedule variables: rigs covered; rig excess (default 10% of the loss, minimum $10,000); tools in the ground limit (default nil).

E04 Demolition Plant

This endorsement applies to insured plant while it is used for demolition.

Demolition conditions. The demolition must follow a written demolition plan or safe work method statement prepared by a competent person. Plant working within reach of falling material must be fitted with a falling object protective structure and with guarding for its windows and hydraulic lines.

We do not pay for loss or damage caused by falling material to an item of plant that was not fitted with that protection.

The demolition excess shown in the schedule applies to loss or damage that happens during demolition, instead of the item's excess, where it is higher.

Schedule variables: items covered; demolition excess (default twice the item's excess).

E05 Agreed Value: All Items

Every item of specified plant is insured for its agreed value, and the Basis of Settlement provision settles each item on that basis.

The agreed value of each item is the value in a written valuation by a licensed valuer, or a dealer's written replacement quotation for an item less than 12 months old, dated no more than 12 months before the start of the policy period, unless we agree otherwise. The agreed value is fixed for the policy period and does not change because the schedule is reissued for another reason. The Appreciation in Value extension does not apply.

Schedule variables: none.

E06 Hired-Out Plant: Plant Hire Businesses

This endorsement applies where the named insured hires plant out as a business.

Standard hire terms. The Hired-Out Plant: Dry Hire and Wet Hire condition is met for dry hire if the named insured hires out under the standard hire agreement it has given us, or one that is no less protective of its rights. It must tell us before it changes those terms.

Damage waiver. Where the named insured offers hirers a damage waiver on terms it has told us about, cover continues while the plant is on hire under the waiver, and we do not seek to recover from the hirer to the extent of the waiver. The damage waiver excess shown in the schedule applies to loss or damage while the plant is on hire under a waiver.

Conversion by a hirer. We pay for the loss of an item of insured plant that a hirer fails to return and keeps or sells as its own, up to the conversion limit shown in the schedule for any one event, if before the hire the named insured verified the hirer's identity with photographic identification and a business or residential address it confirmed.

Not covered. We do not pay for loss or damage to plant while on hire for use outside the geographical limits.

Schedule variables: standard hire agreement reference; damage waiver terms; damage waiver excess (default twice the item's excess); conversion limit (default $100,000 for any one event).

E07 Road Risk: Registered Mobile Plant

This endorsement applies to the items of registered plant named in the schedule for it, and only if Mobile Plant Liability applies.

The Road Use as Transport exclusion does not apply to property damage caused while a named item is driven on a public road between the named insured's premises and a work site, or between work sites. The most we pay for any one occurrence under this endorsement is the road risk limit shown in the schedule, which is part of the limit for Mobile Plant Liability.

The Injury to Workers and Injury Covered by CTP exclusion still applies. Where a commercial motor policy also covers the same liability, the Other Insurance provision applies. This endorsement is the companion to endorsement E11 of the Meridian Commercial Motor wording (2026/CMV/0001).

Schedule variables: registered items covered; road risk limit (default $20,000,000 for any one occurrence).

E08 Electric Plant

This endorsement applies to each item of insured plant that is battery electric or hybrid.

Battery and charger. The traction battery and the charger supplied with an item are part of the item and its sum insured. Accidental loss or damage to the battery, the charger or the item caused by a fire, explosion or thermal runaway during charging is covered under Damage to Insured Plant.

Charging conditions. The item must be charged with a charger approved by its manufacturer, in an area clear of combustible materials.

Not covered. We do not pay for the gradual loss of a battery's capacity, or for a battery that fails without external accidental damage, unless Machinery Breakdown applies to the item.

The battery excess shown in the schedule applies to loss or damage confined to the battery, instead of the item's excess, where it is higher.

Schedule variables: items covered; battery excess (default the item's excess).

E09 Extended Hire Costs

The Hire Costs Following Insured Damage extension applies to every item of specified plant named in the schedule for this endorsement, with the weekly limit and the most weeks shown in the schedule for this endorsement, instead of the defaults in that extension.

Schedule variables: items covered; weekly limit (default $10,000 a week for each item); most weeks (default 52 weeks).

E10 Unspecified Plant: Increased Item Limit

The most we pay for any one item of unspecified plant, in the definition of Unspecified Plant and the Unspecified Plant extension, is increased to the amount shown in the schedule for this endorsement. The unspecified plant sum insured is not increased.

The Theft from Unattended Sites exclusion continues to apply.

Schedule variables: most we pay for any one item of unspecified plant (default $50,000).

E11 Wet Works

The Waterborne and Airborne Plant exclusion does not apply to the items of specified plant named in the schedule for this endorsement while they work on a pontoon or barge, in a tidal zone, or from the bank of a waterway, if:

• the pontoon or barge has a current survey for the load it carries, and the plant is secured to it as the survey or a competent person requires; and
• the work follows a written plan for tides, weather and water levels, and work stops when they exceed the plan's limits.

We do not pay for loss or damage caused by the plant falling into the water where it was not secured as this endorsement requires, or for loss or damage to the pontoon or barge itself.

The wet works excess shown in the schedule applies to loss or damage that happens on or over water, instead of the item's excess, where it is higher.

Schedule variables: items covered; wet works excess (default 10% of the loss, minimum $10,000).

E12 Remote and Autonomous Plant

This endorsement applies to the items of specified plant named in the schedule for it that are operated by remote control, or by a guidance or autonomy system.

Technology failure. We pay for accidental loss or damage to a named item caused by the failure of its remote control, guidance, positioning or autonomy system, including loss of a satellite positioning or communications signal, or a software fault. The Mechanical and Electrical Breakdown exclusion and the Cyber Events exclusion do not apply to that loss or damage, except where it is caused by a deliberate and malicious cyber event.

Operating conditions. A named item must run only software and firmware approved by its manufacturer, within a geofenced work area where the system provides one, and under the supervision of a person able to stop it.

We do not pay for the cost of repairing or replacing the remote control, guidance or autonomy system itself, unless it is damaged by accidental loss or damage covered by Damage to Insured Plant.

Schedule variables: items covered; technology failure excess (default twice the item's excess).

Licence and Trademark Notice

This wording's text is licensed under Creative Commons Attribution 4.0 International (CC BY 4.0). The licence applies to the wording text only. It does not extend to, and no licence is granted in, the "Meridian" name, the Cuttleflow Systems name, logo, bearing mark, or any other trademark, trade dress, or brand asset, all of which remain the property of their respective owners and may not be used without separate permission.

An adopting insurer's own schedule, proposal, endorsements and other materials prepared for use with this wording are not required to be released under CC BY 4.0 merely because they are used together with this wording; CC BY 4.0 requires only that you attribute the wording text you use.

This wording is provided for general use and adaptation. Adopting insurers and their advisers are responsible for obtaining their own legal, regulatory, and reinsurance advice before use, including on whether a Product Disclosure Statement and Target Market Determination are required. Use of this wording requires the approval of the relevant capacity provider. Any Wording Partner review and sign-off letter issued in respect of this wording runs to Cuttleflow Pty Ltd t/a Cuttleflow Systems only and does not constitute legal advice to any adopting insurer or insured.

Designed for the Australian market. Assumes application of the Insurance Contracts Act 1984 (Cth). Users are responsible for their own legal review, regulatory compliance, and reinsurance alignment.