When your business relies on tools or machinery, an unexpected loss can quickly become expensive.
The right insurance for your plant and equipment can help reduce the financial impact of theft, damage or breakdown, so you’re not left covering repair or replacement costs on your own.
What is plant and equipment insurance?
Plant and equipment insurance is a broad term for insurance that protects business machinery, tools and equipment against certain insured events, such as theft, damage or breakdown.
Common types of cover include:
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Portable equipment cover
Designed for equipment that is moved between locations or used away from your main premises, portable equipment cover helps protect portable business items against loss or damage.
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Machinery breakdown insurance
Machinery breakdown insurance helps cover the cost to repair or replace insured machinery if it breaks down due to a sudden mechanical or electrical failure.
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Electronic equipment insurance
This helps protect specified electronic equipment, such as computers, servers, communication systems or point-of-sale equipment, against breakdown or damage covered by the policy.
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Contents insurance
Contents insurance helps cover damage to and loss of business assets kept at your premises, including plant, machinery, tools and specialist equipment.
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Goods in transit insurance
If you transport machinery and equipment between sites, goods in transit insurance can provide protection while they are being moved from one place to another.
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Theft cover
Theft cover helps protect your business if your equipment or other business assets are stolen, which may not always be included under standard business contents insurance.
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Business interruption insurance
Business interruption insurance helps protect your income if an insured event disrupts your business operations, which can be important if damage to key equipment stops you from operating or causes delays.
Many businesses combine several types of insurance into one business insurance package, tailoring cover to the equipment they use and the risks they face.
For example, a tradesperson might take out portable equipment cover for tools kept in their ute, theft cover in case those tools are stolen, and business interruption insurance if losing essential equipment would stop them from working.
A manufacturer might combine machinery breakdown insurance for fixed machinery, electronic equipment insurance for key systems, and contents insurance for business assets kept at their premises.
What does plant and equipment insurance cover?
Plant and equipment insurance can cover a wide range of business assets, including portable equipment, mobile machinery and fixed plant. This can include:
- Hand tools and power tools
- Trade equipment
- Generators, compressors and pumps
- Trailers and attachments
- Forklifts and scissor lifts
- Excavators, loaders, graders and bobcats
- Workshop machinery
- Manufacturing equipment
- Refrigeration and air conditioning units
- Office equipment and business contents
What exactly your insurance covers depends on the type of insurance you have. Different policies protect against different risks, but here’s what your equipment and plant could be insured against and what isn’t generally covered:
What can be covered
- Theft
- Accidental damage
- Fire
- Storm or weather damage
- Damage while equipment is in transit
- Damage while equipment is being used on site
- Mechanical or electrical breakdown
- Damage to business contents or assets at your premises
What isn’t usually covered
- Wear and tear, deterioration and poor maintenance
- Existing faults or known damage
- Intentional damage
- Unlicensed or unauthorised use
- Equipment used outside manufacturer guidelines
- Theft from an unsecured location
- Equipment not listed on the policy
- Damage caused by activities outside your insured business description
Your policy will outline the exact events, items and circumstances that are covered, along with any exclusions, limits or conditions that apply.
Who needs plant and equipment cover?
Plant and equipment cover can help protect your business if you rely on machinery, tools or equipment to operate.
This can include:
- Tradies
- Builders
- Construction businesses
- Earthmoving contractors
- Landscapers
- Manufacturers
- Warehouses
- Mobile service businesses
The right cover depends on the equipment you own, lease or hire, how it is used, where it is stored and the risks your business needs to manage.
How much does plant and equipment insurance cost?
There’s no fixed cost for insurance that covers plant and equipment. The amount you pay depends on a range of factors, including the equipment you want to insure, the types of cover you choose and your claims history.
Equipment that’s expensive to repair or replace, used in high-risk environments or more vulnerable to theft will typically cost more to insure. This means a business with a small number of lower-value tools will pay less than a business with expensive or specialised machinery. For example, a sole trader electrician with $5,000 worth of tools is likely to pay much less for equipment cover than a manufacturing business with $2 million worth of machinery.
Your industry also affects the cost. Insurers look at how equipment is used, where it’s operated, how likely it is to be stolen or damaged and the potential cost of a claim. This means two businesses with similar equipment values can still pay different premiums if they work in different industries or use their equipment in different ways.
According to BizCover, these are typical monthly insurance costs for a range of trade businesses:
| Job | Average monthly insurance cost |
|---|---|
| Builders | $132 |
| Carpenters | $79 |
| Handyman | $60 |
| Plumbers | $143 |
| Electricians | $96 |
| Roofers | $120 |
| Painters and decorators | $70 |
| Earthmovers and excavators | $105 |
| Concrete contractors | $152 |
| Landscapers | $81 |
| Fence installers | $78 |
| Cabinet makers | $117 |
| Source: BizCover, accessed May 2026. These figures are based on general business insurance averages and include cover for equipment as well as other types of insurance commonly needed for the trade. These figures are a guide only. The actual cost of your cover will depend on your business, your equipment, the level of cover you choose and how the insurer assesses your risk. |
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How much can I insure my business’ plant and equipment for?
In many cases, you can choose a cover amount based on what it would cost to repair or replace the equipment.
Depending on the policy, equipment can be insured for replacement value or market value. Replacement value is based on the cost to replace the item with a new equivalent, while market value takes into account the item’s age, condition and depreciation.
Lower-value items worth under $2,500 can often be covered under a general limit but higher-value equipment usually needs to be listed separately on your policy schedule.
It’s important to choose an accurate cover amount. If the sum insured is too low, your payout might not cover the full cost to repair or replace your equipment. If it’s too high, you could be paying for more cover than you need.
How to buy plant and equipment insurance through Savvy
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Apply through Savvy
We’ll connect you with our business insurance partner.
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Choose the insurance you need
Add the types of cover you might need for your equipment and machinery.
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Provide your details
Give information about your business and the cover amounts you want.
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Compare quotes
You’ll have a range of insurers and cover options to choose from.
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Get covered
Choose the insurance package that best suits your needs.
