As smaller plant items are designed to be easily transported or carried by hand, it makes them much easier to steal and so strimmers, mini-diggers and other portable pieces tend to make up the bulk of plant insurance claims in the UK.
The extent of the problem is widely disputed, but many agree that it is commonplace. According to statistics published by IMIA, plant theft costs contractors and insurers around £1.5 million every week.
Of course the best way to prevent such thefts is to secure compounds and storage facilities to put off opportunists; but construction sites can be huge and contractors often find themselves working with staff from other companies who have been contracted in to fulfill other parts of the project. Managing site security then, can become difficult and with so many unknown persons on-site, the risk of inside jobs occurring can be much greater.
This then presents other problems. Many contractors hire their plant for specific tasks, and so in the event of theft it is down to the contractor to replace the equipment as well as paying every day for the hire of their stolen vehicle until the replacement is delivered to hire company. This in itself is expensive, but this can also cause deadlines to be missed which in turn can push project timelines back; in some agreements this can incur fines for the contractor, or result in them being paid a discounted rate for the inconvenience.
When additional costs of hire, replacement, staffing and contractual fines are taken in to account, uninsured plant theft often costs double the price originally paid for the equipment in the first place.
Luckily, where security prevention measures fail, contractors who manage their business risks can make a claim against their Hired Plant Insurance policy. With tailored wording, a contractor may be able to recoup the costs associated with plant theft in addition to the costs of the stolen goods. In the event of a successful claim, an insurer may be able to provide temporary resources so that the contractor in question can make amends quickly, so that the disruption to the project is minimal.
Due to the speed with which Commercial Insurance Brokers and Insurance Companies can react, in some cases a contractor may already be using a replacement by the time the authorities have found the missing items.
It is therefore vital that contractors asses their risks and manage them appropriately to minimize business interruption.
There are a number of qualified Commercial Insurance Brokers who can help; by auditing your business activity and advising you on how to improve your security procedures, whilst also advising you on the level of cover most appropriate to you.
As the daylight hours increase in summer, the number of outdoor thefts increases dramatically; so if you feel that your plant and equipment is at risk, speak to a Commercial Insurance Broker about your options.
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