I thank the mind of the person who thought about insurance, imagine this, you save for years to buy a car, and when you buy it, you make an accident and the car get completely destroyed. Insurance covers the risk that are uncertain, meaning the risk can happen or it might not happen unlike assurance that mainly concentrates on life where one gets compensated in the event of death or end of term agreement, the insured party pays an amount called premium for the insured risk, which means that if the property is destroyed or rather gets affected by the insured risks, the insurer becomes legally liable to bring back the insured party to the position he was in before the risk occurred. This is what we term as compensation.
Insurance in itself is a vital strategy in all businesses, no one knows when a risk is most likely to occur, risk might involve, fire, accident, theft, and many more. Ignorance of many companies has led to a massive loss of machines and other special properties to risk, it is hence advisable for a company to insure their properties especially capital assets. I have personally witnessed a quarry company close down after theft of stone cutting machine, taking insurance cover for capital asset means one is covering for even the future of that company.
Insurance has many advantages as opposed to its disadvantages; security of the insured property is one of the advantages, you feel secured when you know that even after any anticipated loss occur, the insurer will compensate you fully or partially to the point you were before the risk happened. Another advantage would be to diversify risk; in fact this is the main principle of companies that insures. They insure more than one party, and in the event where one party falls into a risk, the compensation is paid from the premium paid by other insurer, basically that is pooling of risk.
A plant machine for hire in Belfast is not excluded from insurance policy, when you offer an operation lease for a plant you ought to have an insurance cover to it. Many people ignore this, Plant machinery is referred to as capital asset in a business, any damage or theft of the machine would even lead to a termination or a long pause of a company operations, capital assets are very vital in any business and care should be taken, when you hire a plant, you only expect some hiring cost according to the terms of the agreement with the person hiring it from you, it is important to note that, in the event of theft or damage of your plant when hired, that loss will be felt by you and not the person who hired it, this is one of the primary reasons why you should have an insurance cover to plant for hire. Plant hire insurance cover in general term is a contract between two parties, these are the hirer of the plant machine and the insurance company where the hirer who is the insured party agrees to pay certain periodical contribution of amount known as premium to the insurer against the peril of fire, accident or loss as a result of any damage.
There are many more reasons why one should have plant insurance cover , many construction companies for instance knows how expensive it is to buy and to maintain a plant machine, many construction industries have a short term contract and they employ operators to operate the plant machine, some operators are very careless and unprofessional and would mishandle the machine leading to destruction that might not be directly known, this might later cause a massive break down to the machinery, it is also logic that people do not take precautions of what do not belong to them, many are likely to mishandle hired machine.
In my conclusion, for the future of the plant machine, for a better service and more customers (hirer) . the machine need to be taken good care of, and this can be done by insuring the plant machine, there are many risks involved in using plant machines, maintenance cost would become more than hiring cost thus becoming uneconomical, to be safe on this. One would need to cover the machine on plant hire insurance cover policy and spread the risk.