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Equipment Insurance

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Equipment Insurance

Equipment insurance cover, at its core, is an insurance policy specifically designed to protect and provide cover for the costs related to damages or losses of your business equipment and other valuable business assets. It acts as a safety net, ensuring that any unforeseen damages to your essential equipment don’t end up crippling your business or incurring exorbitant replacement costs.

Why is equipment insurance important?

Think about the various equipment or mobile plant your business relies on daily. From computers and machinery to specialized tools, the loss or malfunction of any of these can result in significant disruptions. Equipment insurance offers peace of mind, ensuring that even in case of unexpected setbacks, your business doesn’t bear the financial brunt and can quickly bounce back. This includes coverage for mobile phones and office equipment, protecting these essential assets against loss and damage.

It’s crucial to have business equipment cover if your business:

  • Relies heavily on specific equipment, including mobile plant and equipment

  • Uses expensive or specialized tools

  • Operates in accident-prone environments

  • Cannot afford equipment replacement costs

What does equipment insurance coverage in New Zealand include?

Equipment insurance covers losses involving your equipment, including material damage. This includes:

Physical Damage

This coverage is essential for businesses. It provides a safeguard against accidental damage to your equipment, be it from natural disasters like earthquakes or unintentional mishaps in the workplace. Instead of bearing the full cost of repair or replacement, your policy steps in, helping to significantly minimize your out-of-pocket expenses.


Equipment can be a prime target for theft, especially if it's high-value or easily resellable. With theft coverage, you're protected against financial losses if someone unlawfully takes your equipment. It ensures that you can replace stolen items without drastically impacting your business finances.

External Disasters

Sometimes, events beyond our control, such as floods or fires, can jeopardize our equipment. This aspect of the policy comes to the rescue in such scenarios. It covers the repair or replacement costs resulting from damages caused by these external calamities.

Understanding the policy wording is crucial in comprehensively grasping the coverage details, including damage due to fire and other listed events.

How much does equipment insurance cost?

Equipment insurance premiums are calculated on several different factors including:

  • Limit of cover
  • Type of industry
  • Region of NZ
  • Claims History 

Equipment insurance in NZ typically costs between 0.3 – 1% of the value of your equipment per year. 

Who needs equipment insurance?

Any business that heavily relies on equipment for its operations should consider equipment insurance. Whether you’re in construction, IT, manufacturing, agriculture, or any other field, if a significant portion of your investment is in equipment, this insurance perfect to cover the various equipment risks you face.

Equipment insurance covers a vast range of equipment, providing cover for office computers and photocopiers to large industrial machinery, farming tools, and even medical devices.

No, equipment insurance is not legally mandatory in NZ. However, depending on the nature of your business and your financial capacity, it can be a crucial protective measure.

Top industries that need equipment insurance

In New Zealand, equipment insurance is a safeguard for many industries against losses.

How do I get proof of equipment insurance?

You can usually get proof of equipment insurance same day when you purchase insurance through Gerrards. Once you have purchased the protection, the insurer will provide you with a certificate of insurance. This document serves as proof of your coverage and details the terms of your policy, including the start and end dates, the covered risks, and the insured amount.

Acquiring a equipment insurance policy from traditional insurance brokers may require a few weeks, a delay that could create problems for people or businesses who need instant insurance proof.

To obtain equipment insurance coverage promptly, contact us. We may require you to provide some fundamental details about your business, such as:

  • The name of your business

  • The nature of your business activities

  • The total number of employees

  • Sum insured of business equipment

  • Predicted annual income

  • Years of experience in the industry

What does equipment insurance not cover?

Equipment insurance generally does not cover:

Normal wear and tear

Equipment naturally degrades over time, and this natural degradation isn’t covered.

Maintenance Issues

If equipment stops working due to lack of maintenance or servicing, this won’t be covered. It’s essential to ensure your equipment is properly maintained and serviced regularly.

External business factors

If your business suffers due to market changes or other non-equipment related reasons, this won’t be covered.

Intentional damage

Damages inflicted on purpose to the equipment will not be covered.

Other common questions about equipment insurance

Yes, a business can typically bundle various equipment under one comprehensive policy, making it both cost-effective and convenient.

The value can be determined by its current market value, replacement cost, or an agreed value that’s been discussed with your insurer.

Even if you don’t own the equipment, you can still get it insured. It’s crucial since any damage might require you to bear the repair or replacement costs as per the leasing agreement. Do note that most insurers exclude theft by hirer which means equipment stolen by the hirer won’t be covered.

Many policies offer automatic benefits that extend the cover for equipment in transit, but it’s important to confirm this with your specific policy terms.

It’s vital to review this annually. As your business grows or changes, your insurance needs might evolve too. Regular reviews ensure that you’re always adequately covered. At Gerrards we review your policies every year to ensure the cover is correct.

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