ICIB

2026 July 28

As a civil contractor, you know that when one of your critical machines goes down, the real headache isn't just the repair bill, it's the domino effect on your entire project.

We get that a sidelined excavator or grader doesn't just halt work, it bleeds revenue, blows out your project deadlines, leaves your crew standing around, and strains your relationships with clients.

That’s why Business Interruption (Consequential Loss) cover is a vital extension within mobile plant insurance. While standard terms, limits, and waiting periods apply, this protection is designed to throw you a financial lifeline right when your business is feeling the pressure most.

What your policy covers

Where this cover applies, it can provide valuable support following insured damage to a machine. Depending on the policy terms, this may include:

Compensation for lost revenue while key plant is unavailable.
Increased cost of working to help keep projects moving.
Contribution towards the hire or rental of replacement machinery.

For civil contractors like yourself, this can make a significant difference by helping preserve cashflow, maintaining client service, and reducing the operational strain that often follows an unexpected breakdown or loss.

Important limitations

While this cover is valuable, it is not a full Business Interruption policy and the standard limits are as follows:

$5,000 per week limit standard - but higher limits on request.
$50,000 maximum per claim standard – but higher limits on request.
$250,000 annual aggregate limit.
Seven-day waiting period before cover commences (reduced offering for CCNZ members compared to the standard 14 days).
Maximum six-month indemnity period.

In addition, claims require detailed financial evidence and must demonstrate that all reasonable steps have been taken to minimise a loss.

What this means for your business

Plant availability is often directly linked to income, project timelines, and contractual performance. That is why this cover can be so important. Even a short period of downtime can create pressure through delayed works, idle operators, reallocated resources, hire costs, and lost productivity. Business Interruption cover helps soften that financial impact by contributing to the loss of income and additional operating costs that can arise while repairs or replacement arrangements are underway.

In practical terms, this means you are not relying solely on the repair or replacement of the machine itself. They also have a level of protection for the knock-on effect that downtime can have on the wider business.

Illustrative claims examples

Below are examples of the types of situations where this cover can be especially valuable.

Excavator damaged on site: A contractor’s primary excavator suffers insured damage and is unavailable for several weeks. During that period, the business incurs plant hire costs to keep a project moving and experiences reduced productivity. Business Interruption cover can help contribute towards those additional costs and the resulting financial loss.
Loader fire disrupts operations: A loader is damaged by fire, causing an immediate interruption to scheduled works. With deadlines to meet and crews already committed, the contractor must source replacement equipment urgently at short notice and higher cost. This cover can assist with the increased cost of working and help reduce the income impact of the disruption.
Key machine comes off the road during peak workload: A piece of insured mobile plant is out of action during a busy trading period, affecting the contractor’s ability to complete booked work on time. Even where the physical damage claim is covered, the real pressure on the business is often the revenue interruption. Consequential loss cover provides an additional layer of protection against that broader commercial impact.

Protect cashflow and keep your operation running

Business Interruption cover should be seen as an important part of a well-structured insurance programme. It can play a valuable role in protecting cashflow, supporting continuity of operations, and helping businesses respond more confidently when a key item of plant is unexpectedly out of action.

We recommend reviewing the scope of cover available to ensure it aligns with your turnover, project commitments, machinery reliance, and contractual exposures. A well-considered programme can protect not only your physical assets, but also the income those assets help generate.

Time for a review?