Construction Firms — NZ Commercial Motor + Mobile Plant Insurance

Plant and Machinery including but not limited to cranes, forklifts, excavators, lifting machinery/platforms, log haulers, skidders, rollers, graders, bull dozers is covered subject to the condition that all persons operating such vehicles must be fully trained and qualified, must not operate beyond manufacturer's specifications or recommendations, and must comply with Health and Safety In Employment (Pressure Equipment, Cranes, And Passenger Ropeways) Regulations 1999. There is no cover while the vehicle is being used or operated as plant or machinery and not operating solely as a Vehicle (Section 2 exclusion: Operation Of Plant Or Machinery).

Substitute Vehicles and Rental Vehicles are covered under optional extensions. 'Substitute Vehicles' (Section 2 Automatic Extension) covers liability to the Vehicle owner for damage up to the Schedule limit and liability to third parties where the Insured or Authorised Driver hires, rents or borrows a Substitute Vehicle (subject to declining the owner's statutory offer of insurance). 'Hired And Rented Vehicles' (Section 2 Optional Extension) covers liability for Rental Vehicles. 'Employees' Vehicles' (Sections 1 and 2 Optional Extension) covers vehicles owned by employees used for the Insured's Business.

Ingestion or Entanglement of Foreign Objects extension covers accidental loss resulting from entry, entanglement or ingestion of any foreign object into any mulching, chipping or agricultural implement or machine, up to $50,000 per event. Hoists, Hydraulic Lifts and Rams extension covers mechanical breakdown or mechanical failure of hoists or hydraulic rams permanently attached to the insured vehicle up to $10,000 per event (excess $500). Off Road Tyre/Track Damage extension covers accidental loss to tyres or tracks fitted to an insured vehicle not principally used for driving on public roads. Section 2 excludes liability from the use of mechanical plant components while used for their designed purpose, except for vehicle-mounted mechanical plant used to load/unload or any fork hoist.

Hired In Vehicles (General Policy Extension): If you hire in or rent in a vehicle during the period of insurance and you accept the rental owner's statutory offer of insurance, this extension covers: 1. Liability to third parties for the difference between the amount payable under the statutory offer of insurance and the maximum amount payable under Section 2; 2. The difference between the Section 1 excess under this policy and any deductible that would have been applicable under the rental vehicle owner's insurance. Also: 'Hired in Vehicle – Consequential Loss' (Section 2 automatic extension) covers liability to the owner of a hired/rented vehicle for consequential losses caused by a Section 1 loss, up to $50,000 per event, where you reject the owner's statutory offer of insurance.

Section 1 covers accidental loss to insured vehicles including mechanical plant. The 'Appreciation – Mechanical Plant' extension covers appreciation of market value of mechanical plant up to 25% of the value specified in the vehicle declaration. The 'Ingestion or Entanglement of Foreign Objects' extension covers loss resulting from entry, entanglement or ingestion of any foreign object into any mulching, chipping or agricultural implement or machine up to $50,000 per event. The 'Off Road Tyre/Track Damage' extension covers loss to tyres or tracks fitted to an insured vehicle not principally used for driving on public roads up to $5,000 per period of insurance. Section 2 excludes liability arising from the use of any mechanical plant component while being used for the purpose for which it was designed, except for vehicle mounted cranes used to load/unload and fork hoists.

Optional extension 'Hired In Vehicles': If you hire in or rent in a vehicle during the period of insurance and do not accept the rental owner's statutory offer of insurance, this extension covers the hired vehicle as an insured vehicle, whether or not it is a similar substitute vehicle as set out in the definition of insured vehicle; and covers your liability to the owner of that vehicle for consequential losses caused by loss covered under Section 1 (most we will pay $50,000 per event unless different amount shown in schedule). Automatic extension 'Hired In Vehicle – Consequential Loss' also provides cover up to $25,000 per event for consequential losses where statutory offer of insurance is rejected.

your vehicle means all vehicles and, where specified in the schedule, also includes vehicular equipment of every description, including mobile plant and mobile equipment owned or used, which includes being leased, lent, borrowed, hired or under your care, custody and control for which you are responsible for, including their accessories. Tool of trade use is defined and subject to specific exclusions under Section 2.

Extension 12 (Difference in Excess / Hired-in or Rental Vehicles): Where you hire in or rent a vehicle in connection with your business and the hire agreement deems the owner of the vehicle responsible for insurance, your policy extends to cover any difference in the basic deductible level between your policy and the deductible level under the insurance coverage provided by the owner of the vehicle.

Mechanical plant is defined as 'A vehicle, that has either plant or machinery attached to it, or is primarily designed as mobile plant or mobile machinery.' Section 1 covers accidental loss to insured vehicles including mechanical plant. Section 1 Automatic Extension A (Appreciation – Mechanical Plant) covers appreciation of market value of mechanical plant up to 25% of declared value. Section 1 Exclusions D (Vehicle Parts) applies but does not apply where loss is the direct result of fire, overturning, impact/collision, immersion in water, theft, malicious damage, incorrect fuel, hail/snow/storm/lightning, natural disaster, or animals.

Section 2 Automatic Extension F (Hired And Rented Vehicles) covers liability to third parties for hired or rented vehicles and the difference between the Section 1 excess and any deductible under rental vehicle owner's insurance. Section 2 Automatic Extension G covers the insured's liability to the owner of a hired/rented vehicle for consequential losses where the statutory offer of insurance is rejected. The definition of 'insured vehicle' includes 'any other vehicle, hired, rented, or borrowed without financial or other consideration, by the insured during the period of insurance.'