4 min read · Updated . Reviewed by James Rock (National Partnerships Director).
On this page 11
- 1. What exactly does it cover?
- 2. How is the machine valued if it’s written off?
- 3. What is the excess, and when does it change?
- 4. Where is the machine covered?
- 5. Is it covered when someone else is using it?
- 6. Are attachments and extras included?
- 7. What does your lender need?
- 8. What happens at renewal?
- What does the stamp duty add?
- A one-page checklist
- Ready to see a fixed premium?
1. What exactly does it cover?
Every policy has a wording that sets out what is and isn’t covered, with its limits and exclusions. The product disclosure statement or policy wording, not the brochure or the certificate of currency, is the document that counts. Look for the events covered, such as accidental damage, theft, fire, flood and storm, and the exclusions, such as wear and tear or unlicensed operators.
2. How is the machine valued if it’s written off?
The basis of settlement is the single biggest difference between policies. Agreed value pays a figure set when the policy starts. Market value pays what the machine was worth just before the loss, which falls as it ages. Check which applies, and whether the insured value you enter is what you’d get.
3. What is the excess, and when does it change?
The excess is the part of a claim you pay yourself. Check the standard amount, whether it rises for theft or for younger operators, and whether more than one excess applies when more than one machine is involved. Insurance excess explained.
4. Where is the machine covered?
On site, in the yard, in transit between sites, and on public roads if it’s registered. Transit is where many claims happen and where some policies draw the line. If the machine is conditionally registered, its CTP covers injuries to people on the road, not the machine itself. What conditional registration’s CTP covers.
5. Is it covered when someone else is using it?
Dry hire, lending a machine to a subcontractor, or a wet hire operator on another site: each is a different situation. Through EquipCover, dry hire is covered when a contractual hire agreement is in place. Check your policy’s position, and keep the agreement on file. Wet hire vs dry hire.
6. Are attachments and extras included?
Buckets, augers, hammers, GPS units and other attachments can be worth a large share of the machine. Some policies include them in the insured value, some need them listed. Through EquipCover, attachments are on the approved item list.
7. What does your lender need?
If the machine is financed, the lender’s terms usually require it insured for its full insurable value, for the whole loan, with the lender named on the policy, and a certificate of currency before settlement. ANZ’s published chattel mortgage terms, for example, treat a lapse in insurance as a default. What a chattel mortgage requires.
8. What happens at renewal?
An annual policy is re-rated every year for claims, inflation and market changes, and insurance prices paid by Australian households rose 47.9% in the five years to June 2026. A fixed multi-year policy sets the premium once for 12 to 60 months. Ask which you’re being offered, and what the premium will be in year two. Multi-year vs annual compared.
What does the stamp duty add?
States add stamp duty to the premium, from 7% in Victoria to 11% in South Australia. The rate in your state.
A one-page checklist
| Check | Ask |
|---|---|
| Cover | Which events are covered, and which are excluded? |
| Valuation | Agreed value or market value? |
| Excess | How much, and when does it change? |
| Location | Site, yard, transit, road? |
| Other users | Dry hire, lending, subcontractors? |
| Attachments | Included, or listed separately? |
| Lender | Full value, lender noted, certificate of currency? |
| Renewal | Re-rated yearly, or fixed for the term? |
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Frequently asked questions
What should I check before buying equipment insurance?
What’s covered and excluded, how the machine is valued, the excess, where it’s covered, cover when others use it, attachments, your lender’s requirements, and what happens at renewal.
What is the basis of settlement?
How a written-off machine is valued: agreed value pays a figure set at the start; market value pays what it was worth just before the loss.
Does my lender have insurance requirements?
Usually: full insurable value for the whole loan, the lender named on the policy, and a certificate of currency before settlement.
Is a machine covered in transit?
It depends on the policy. Transit between sites is where many claims happen, so check the wording specifically.
Which document decides what’s covered?
The policy wording or product disclosure statement, not the brochure or the certificate of currency.
Sources
- ANZ: Chattel Mortgage Terms and Conditions (02/2025)
- Insurance Contracts Act 1984 (Cth), sections 59, 60 and 62: cancelling general insurance, including instalment contracts
- Australian Bureau of Statistics: Consumer Price Index, insurance (quarterly series to June 2026; monthly release September 2026, published 28 October 2026)
- Department of Defence: Guidance note, insurance certificates of currency
- Product information and approved item list from our specialist insurance partner (August 2026)
General information only, not personal advice. Read the policy wording before you buy.
