Equipment Insurance

Equipment insurance covers a vast range of business equipment, providing comprehensive protection for your valuable assets:

Physical Damage: Essential coverage against accidental damage from natural disasters like earthquakes or workplace mishaps. Your policy minimizes out-of-pocket expenses for repair or replacement, keeping your business operational.

Theft Protection: High-value or easily resellable equipment is safeguarded against unlawful taking. This coverage ensures you can replace stolen items without drastically impacting your business finances or cash flow.

External Disasters: Coverage for repair or replacement costs from damages caused by floods, fires, and other external calamities beyond your control. Understanding the policy wording is crucial for comprehending coverage details.

Equipment Types Covered: Office computers and photocopiers, large industrial machinery, farming tools and equipment, medical devices and specialized equipment, mobile plant and equipment, construction tools and specialized instruments, and mobile phones and tablets.

What's NOT Covered: Normal wear and tear (natural degradation over time), maintenance issues (equipment failure due to lack of servicing), external business factors (market changes or non-equipment related reasons), and intentional damage to equipment.

Equipment insurance premiums in New Zealand are calculated based on several key factors:

• Limit of cover: The total value of equipment you need to insure affects your premium
• Type of industry: Different industries have varying risk levels that impact pricing
• Region of NZ: Geographic location affects premium rates based on regional risk factors
• Claims history: Your past claims record has a significant impact on pricing
• Type of equipment: Specialized or high-risk equipment may cost more to insure
• Security measures: Storage security and theft prevention measures can reduce premiums

Equipment insurance in NZ typically costs between 0.3 – 1% of the value of your equipment per year. This affordable rate provides comprehensive protection for your business assets without significant financial burden.

What Is Equipment Insurance?

Equipment insurance is a type of commercial insurance policy designed to protect the physical equipment and assets your business relies on every day. Whether you run a construction company, a medical practice, a farm, or a small office, your equipment is the backbone of your operations — and replacing or repairing it without insurance can be financially devastating.

In New Zealand, equipment insurance covers a wide range of risks including accidental damage, theft, fire, flood, and other external disasters. It applies to virtually any category of business equipment: from heavy industrial machinery and mobile plant through to computers, medical devices, and power tools.

At Gerrards Insurance Brokers, we work with 20+ A-rated insurers across New Zealand to find the most comprehensive and cost-effective equipment insurance solution for your specific business needs. We work for you — not the insurer — so you can be confident the cover you receive is genuinely right for your business.

What Does Equipment Insurance Cover?

A well-structured equipment insurance policy in New Zealand typically covers the following:

• Accidental physical damage: Damage caused by accidents in the workplace or during transit, including drops, collisions, and operator errors.
• Natural disaster damage: Damage arising from earthquakes, floods, storms, or other natural events — particularly relevant in New Zealand's high-risk natural hazard environment.
• Theft and attempted theft: Coverage for the unlawful removal of equipment from your premises, vehicle, or worksite.
• Fire damage: Destruction or damage caused by fire, including smoke damage to sensitive electronic equipment.
• Malicious damage: Deliberate damage caused by third parties, including vandalism.
• Breakdown cover (optional): Some policies can be extended to include mechanical or electrical breakdown, depending on the insurer and equipment type.

Coverage typically applies to equipment whether it is stored on your premises, in transit between locations, or being used on a client's site — though policy wording varies, so it pays to understand the specific territorial limits of your cover.

What's Not Covered?

Like all insurance policies, equipment insurance has exclusions. Common exclusions include:

• Wear and tear: Gradual deterioration of equipment over its working life is not covered. Insurance is designed for sudden, unexpected events — not the natural ageing of your assets.
• Maintenance failures: If equipment fails because it wasn't properly maintained or serviced, most policies will not respond. Regular maintenance is both a contractual obligation and good business practice.
• Mechanical or electrical breakdown: Unless you have specifically added a breakdown extension, most standard equipment insurance policies do not cover internal mechanical or electrical failure.
• Intentional damage: Any damage deliberately caused by the insured or their employees is excluded.
• Consequential loss: Standard equipment policies cover the cost to repair or replace the equipment itself, not the downstream financial losses caused by the equipment being out of action — though you may be able to add business interruption cover separately.

Who Needs Equipment Insurance in New Zealand?

If your business owns, uses, or leases equipment that is essential to your operations, you need equipment insurance. This includes:

• Tradespeople and contractors: Builders, plumbers, electricians, and other trades rely heavily on tools and equipment. A stolen toolbox or a damaged compressor can bring a job to a halt.
• Farmers and rural businesses: Farm equipment — from tractors and quad bikes to irrigation systems and GPS guidance units — represents a major capital investment. A single incident can cause significant financial loss.
• Construction companies: Mobile plant such as excavators, compactors, and forklifts are high-value assets that operate in physically demanding environments with elevated risk of damage.
• Medical and healthcare practices: Diagnostic equipment, dental chairs, ultrasound machines, and other medical devices are expensive to replace and critical to patient care.
• Professional offices: Computers, servers, photocopiers, AV equipment, and communication technology represent significant value and are often targeted by thieves.
• Hospitality and retail businesses: Commercial kitchen equipment, refrigeration units, point-of-sale systems, and signage all need protection against accidental damage and theft.
• Manufacturers and industrial businesses: Large-scale industrial machinery and production equipment can cost hundreds of thousands of dollars to replace — making insurance essential.

How Much Does Equipment Insurance Cost in New Zealand?

Equipment insurance premiums in New Zealand are generally very affordable relative to the level of protection they provide. As a general guide, most businesses can expect to pay between 0.3% and 1% of the total insured value of their equipment per year.

For example, if your business equipment is valued at $100,000, you might expect to pay somewhere between $300 and $1,000 per year in premiums — though actual pricing depends on a range of factors including:

• The total sum insured: The higher the value of equipment you need to cover, the higher the premium.
• Industry and risk profile: High-risk industries such as construction or mining will typically attract higher premiums than lower-risk office environments.
• Equipment type: Specialized or high-value equipment, or equipment used in hazardous conditions, may cost more to insure.
• Geographic location: Your location within New Zealand affects your exposure to natural hazard risks such as earthquakes and flooding, which influences pricing.
• Claims history: A clean claims record can help reduce your premiums over time, while a history of frequent claims may push costs higher.
• Security measures: Businesses with strong security practices — including alarms, lockable storage, GPS tracking on mobile plant, and secure premises — may qualify for premium discounts.
• Excess level: Choosing a higher excess (the amount you contribute to each claim) will typically reduce your annual premium.

At Gerrards, we compare quotes from more than 20 New Zealand insurers to ensure you're getting the best value coverage for your specific situation — not just the cheapest price, but the right cover at a competitive rate.

Equipment Insurance for Specific Industries

Construction and Contracting

Construction businesses face some of the highest equipment risks of any industry. Equipment operates in physically demanding outdoor environments, is frequently moved between sites, and is often left unsecured overnight. Mobile plant such as excavators, rollers, and cranes represent enormous capital investment, and even small tools can be expensive to replace.

Key considerations for construction equipment insurance include on-site and off-site coverage, transit cover, and ensuring your policy reflects replacement value rather than depreciated value for critical plant.

Farming and Agriculture

Farmers and rural businesses in New Zealand have a significant amount of capital tied up in equipment. Tractors, harvesters, spray units, irrigation pivots, quad bikes, and utility vehicles are all essential to daily farm operations — and all exposed to the risks of physical damage, theft, and natural disasters.

Given New Zealand's exposure to severe weather events and the remote nature of many rural properties, equipment insurance is particularly valuable for agricultural businesses. Gerrards has extensive experience insuring rural and farming operations and understands the specific needs of this sector.

Medical and Healthcare

Medical practices, dental clinics, veterinary practices, and allied health providers depend on sophisticated and expensive equipment to deliver care. The cost of replacing a single diagnostic device can run into tens of thousands of dollars, and downtime caused by equipment failure directly impacts patient care and revenue.

Equipment insurance for healthcare providers needs to account for the high replacement costs of specialised medical devices, the sensitivity of electronic equipment, and in some cases, the need for temporary replacement equipment while claims are processed.

Professional Services and Offices

Even businesses without heavy machinery have significant equipment exposure. IT equipment — servers, workstations, laptops, and networking infrastructure — represents substantial value and is a prime target for theft. Office photocopiers, AV systems, and communication equipment also need protection.

For professional services firms, the loss of IT equipment can also trigger significant business interruption, making it important to have both equipment cover and potentially a broader business insurance package in place.

Why Use Gerrards for Equipment Insurance?

As an independent New Zealand insurance broker, Gerrards works exclusively in your interest — not the insurer's. Here's what sets us apart:

• Access to 20+ insurers: We compare the market to find the policy that genuinely fits your business, not just the first option available.
• Expert guidance: Our brokers understand the nuances of equipment insurance policy wording and can identify gaps in coverage before they become problems.
• Same-day certification: When you need proof of insurance for a client contract or site requirement, we can provide your certificate of insurance the same day.
• Annual policy reviews: Your business changes over time. We review your coverage every year to make sure your sum insured and policy terms still reflect your actual situation.
• Claims support: If you need to make a claim, we advocate on your behalf to ensure you receive a fair and prompt outcome.
• Rural and trade expertise: With deep experience in both rural and commercial insurance, we're well placed to advise businesses of all types across New Zealand.

Getting Equipment Insurance: What Information Do You Need?

To get an accurate equipment insurance quote, you'll typically need to provide:

• Your business name and structure (sole trader, partnership, company)
• Nature of your business activities
• A list of the equipment you want to insure, including approximate values
• Where the equipment is normally stored or used (premises, vehicles, multiple sites)
• Your claims history for the past three to five years
• Details of any security measures in place
• Your predicted annual revenue (relevant for some policies)

The more detail you can provide, the more accurate your quote will be — and the less likely you are to encounter coverage issues at claim time.

Equipment Insurance vs. Other Business Insurance Policies

It's worth understanding how equipment insurance fits within the broader landscape of business insurance in New Zealand:

• Equipment insurance vs. contents insurance: Business contents insurance typically covers furniture, fixtures, and fittings within your premises. Equipment insurance is specifically designed for business equipment and often extends to cover equipment away from your premises — on worksites, in transit, or at temporary locations.
• Equipment insurance vs. machinery breakdown: Machinery breakdown insurance covers the cost of repairing mechanical or electrical failure — something that standard equipment insurance typically excludes. Many businesses benefit from having both types of cover in place.
• Equipment insurance vs. business interruption: Equipment insurance covers the cost of replacing or repairing damaged equipment. Business interruption insurance covers the financial losses caused by being unable to operate while equipment is out of action. Together, these policies provide comprehensive protection.
• Equipment insurance vs. transit insurance: If you regularly move high-value equipment between locations, a standalone marine transit policy may provide more comprehensive protection for equipment in transit than a standard equipment policy.

Frequently Asked Questions

Does equipment insurance cover hired or leased equipment?

It depends on your policy. Some equipment insurance policies can be extended to cover equipment you hire or lease — which is important if your business regularly rents machinery or tools. If you are responsible for hired equipment under the terms of your hire agreement, you need to ensure your insurance responds. Talk to a Gerrards broker about adding hired-in plant and equipment cover if this applies to you.

Is equipment covered while in transit?

Many equipment insurance policies include coverage while equipment is in transit as standard, but territorial limits and transit conditions vary between insurers. If your business regularly transports equipment — for example, a trades business moving tools between job sites — confirm that your policy explicitly covers transit and check whether there are any conditions around how equipment must be secured.

Do I need to list every item individually?

Policies vary. Some equipment insurance policies use a blanket sum insured approach, covering all of your business equipment up to a nominated total value. Others require you to schedule specific items, particularly for high-value assets above a certain threshold. Your Gerrards broker can help you understand which approach is most appropriate for your situation and ensure high-value items are adequately protected.

What happens if my equipment is underinsured?

Underinsurance is a significant risk for New Zealand businesses. If the total value of your equipment exceeds your sum insured at the time of a claim, your insurer may apply an averaging clause — reducing your claim payout proportionally. It's important to review your sum insured regularly, particularly as you acquire new equipment or as replacement costs increase. Gerrards' annual policy review process helps ensure your coverage keeps pace with your business.

Can I get equipment insurance for one specific item?

Yes. If you have a single high-value piece of equipment — such as a specialist medical device, a large piece of plant, or a high-end drone — you can insure it as a standalone item. This is often done through a scheduled or itemised policy rather than a blanket equipment policy.

Get Equipment Insurance Through Gerrards Today

Your equipment is a major business asset. Protecting it shouldn't be complicated or time-consuming. At Gerrards Insurance Brokers, we make it straightforward to get the right equipment insurance in place — with access to 20+ New Zealand insurers, expert advice tailored to your industry, and same-day certification when you need it.

Call us on 0800 374 691 or request a quote online to get started. Our team is ready to help you protect the equipment that keeps your business running.