In recent years, the UK construction industry has faced a rise in the theft of plant machinery and equipment. According to a survey by the Chartered Institute of Building, a staggering 92% of construction companies claim direct impact from petty crime, with 21% reporting weekly site robberies. In 2020 alone, the total cost of theft and vandalism in the UK construction industry reached a staggering £800 million.
Theft is not limited to construction sites, with an alarming average of 20,000 reported cases of tool theft from vans annually. The replacement cost of tools and equipment has been estimated at £15 million each year, and predictions suggest that an average builder may experience losses of up to £10,000 worth of tools throughout their career.
In response to these challenges, construction business owners should use another layer of protection: plant insurance. Plant insurance is a specialised cover designed to safeguard construction, agricultural vehicles, and various specialist equipment, such as forklifts, diggers, and cherry pickers.
This insurance can cover both owned and hired-in plant equipment for on-site and public road use. The policy’s flexibility includes essential business covers like public liability, employer’s liability, and protection against various risks such as road risks, third-party working risks, accidental damage, and more.
Different Types of Protection Under Plant Insurance
The coverage under plant insurance is extensive, encompassing construction plant, agricultural vehicles, lifting equipment, road maintenance vehicles, attachments, and even protection against common risks like public liability and damage while in transit. The main types of plant insurance include hired-in plant, owned plant, temporary cover, and all-risks, offering comprehensive protection against fire, flood, theft, malicious, and accidental damage.
The cost of plant insurance is influenced by factors such as the type and amount of plant equipment, its value, the nature, and location of the work, project size, and the desired coverage against specific risks. It provides a tailored approach to businesses, and protects their assets within their budget constraints.
It’s essential to note that not all vehicles are considered as plant, and liability for hired-in plant rests with the hirer. Without hired-in plant insurance, the hirer could be responsible for the repair costs of damaged equipment.
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Additionally, businesses often complement plant insurance with other policies like public liability, contract works, employers’ liability, stock and materials, professional indemnity, and third-party risks.
The UK construction market can take another proactive approach to try and stop theft with technology. Telematics technology, according to ABAX, has witnessed a 278% increase in usage across 11,245 plant and machinery units in 2021. Amounting to nearly 13 million hours.
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How to Avoid Theft on Construction Sites?
One of the driving forces behind the use of this type of technology is the realisation that traditional security like cameras and locked gates, are no longer working. Thieves have become more sophisticated, which needs a smarter approach to theft prevention.
ABAX’s telematics technology uses state-of-the-art geofencing, as an invisible tripwire. This technology triggers real-time notifications when items are taken beyond designated boundaries. This improves the chances of recovery of stolen tools, machinery, trailers, and vehicles.
In the face of these theft trends, construction sites are using advanced tracking to protect the machinery on site.Trackershop, a leading GPS vehicle tracker installer, claim plant and tool theft increased by 50% in the early months of the pandemic. There has been an 80% increase in demand for state-of-the-art tracker technology over the past 12 months.
Trackershop’s survey reveals that more than three-quarters of its customers believe machinery theft is now a more of a threat than before the pandemic. Two-thirds have seen no decline in the problem. Less than 10% of plant machinery is recovered without a tracker. Businesses react and take matters into their own hands to protect their assets be they hired or owned.
One Trackershop customer shares the impact of machinery theft on their business.During the second lockdown, a digger was stolen, and due to the absence of trackers, recovery was impossible. However, with Trackershop’s tracking devices in their fleet of vans, they successfully recovered two stolen vans instantly using live tracking information. Encouraged by this success, they are now implementing trackers across all new plant machinery.
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Plant and machinery theft not only poses a financial threat but also disrupts work, leading to increased insurance premiums and loss of business. With the UK construction industry estimated to lose over £800 million annually due to machinery theft, the adoption of tracking devices is becoming a crucial security measure.
In conclusion, the escalating trend of plant and machinery theft in the UK construction industry calls for a multi-faceted approach to safeguarding assets. Embracing technology, such as telematics and tracking devices, proves to be an effective deterrent against theft. Simultaneously, plant insurance offers businesses the financial protection needed to navigate the challenges posed by theft and other potential risks.
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