Overturning during the work process is one of the risks a CPM (plant and machinery) policy can cover – unlike comprehensive motor insurance (KASKO), which is aimed at road traffic. Cover still depends on the policy wording: the important points are the exclusions for breaches of work safety requirements, operator qualifications and working in an unsuitable environment (for example, on too steep a slope or on unstable ground).

When this answer applies to your situation

  • An excavator overturns at the edge of a trench or on a slope.
  • A lift or a crane loses stability during work.
  • Machinery slides into a ditch while moving around the site.

What can change the answer

  • Whether the policy covers the work process (not only standing and moving).
  • Requirements on the working environment and on operating the machine in line with the manufacturer's instructions.
  • Operator qualification requirements in the policy.
  • The limit for recovery and lifting-out costs – after an overturn these tend to be large.

What to check in the policy or quote

  • The wording of the operating cover ("during the work process")
  • Exclusions for breaches of safety rules
  • Whether recovery/lifting-out costs are included and their limit
  • The deductible for this risk
  • The valuation basis in the event of a total loss

The typical mistake

Relying on KASKO: for machinery that both drives and works, KASKO often does not respond precisely during the work process – and overturning tends to happen precisely during the work process.

Example

A situation typical in practice (generalised example, not a specific client)

A typical situation: a 15 tonne excavator overturns while digging a trench in soft ground. The damage to the machine and the lifting-out costs together exceed a year's hire charge; a CPM policy with cover for the work process and a recovery costs extension can transfer this risk to the insurer.

Related content

Sources and basis

This answer is based on Kristaps Račko's practice as a broker; it is not individual insurance advice. General regulatory context: Apdrošināšanas un pārapdrošināšanas izplatīšanas likums, the Latvian Insurance and Reinsurance Distribution Law (likumi.lv); supervision of brokers – the Bank of Latvia register.

Author: Kristaps Račko, insurance broker (partner at SIA EURORISK) Published: Last reviewed:

This is not individual insurance advice; actual cover always depends on the chosen insurer's wording and the special conditions of the policy.