Physical Damage Insurance

Physical Damage Insurance

You never know when something might happen to your equipment. With Physical Damage Insurance, you will be ready. If your new or used machine experiences a covered loss, we'll get it repaired or replaced so you can get back to work.

You invest a lot in your business, and protecting those investments is a priority. Whether you are looking to manage risk, prepare for the unexpected or simply enhance peace of mind, we have the solution that can help you be more successful.


Protection When You Need It Most

Physical Damage Insurance offers comprehensive coverage with competitive premiums. In the event of a covered loss or damage in respect of your equipment, this policy will:

  • Pay the covered value of the loss or damage
  • Pay the cost of repair or replacement, plus any reduction in value of the repaired item
  • Pay an agreed or assessed value and take possession of all or any part of the insured equipment
  • Repair or replace with another item of comparable material and quality for the same use

In the event of total covered loss or damage in respect of your equipment subject to a valid hire purchase, leasing or other financial interest, at your option** this policy will either:

  • Settle the claim by paying out the outstanding hire purchase, lease or other financial interest excluding any missed payments or interest as at the date of loss or damage less any discount in respect of finance charges and interest for the unexpired term of such hire purchase, leasing or other financial interest arrangement.

** Provided your hire purchase, leasing or financial provider does not have an interest in the policy.


Coverage Details

  • For a covered partial loss, full replacement cost for genuine Cat parts and authorised Cat dealer repair
  • For a total loss, equipment is replaced without deduction for depreciation or deterioration for equipment less than 24 months old
  • Allowance for incidental dry hire (less than 20% of overall usage)
  • Expediting expenses (e.g., express freight) up to $100,000 or 25% whichever the lesser
  • $1,000 deductible for all equipment
  • Equipment rental costs up to $20,000 after a covered loss
  • Equipment transportation to a Cat dealer for repairs after covered loss
  • Coverage for theft by hirer
  • Coverage for leased, rented or borrowed equipment up to $250,000
  • Coverage for newly acquired equipment up to $500,000
  • Recovery Costs of Machinery up to $25,000
  • Equipment trailers and attachments can be insured
  • Equipment from other manufacturers can be insured
  • Deductible waivers for qualifying anti-theft devices (Product Link)

Coverage for All Your Machines

You deserve the best coverage for your machines, regardless of the manufacturer. That's why we offer Physical Damage Insurance for all your equipment, including trailers and attachments, with enhanced coverage for fleets.


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The Physical Damage Insurance Program is managed for Cat Financial by Willis Australia Limited (ABN 90 000 321 237 of Level 5, 570 Bourke Street, Melbourne, AFS Licence No. 240 600), acting as Underwriting Agent for Chubb Insurance Company of Australia Limited (ABN 69 003 710 647 of Level 29, 2 Park Street, Sydney, AFS Licence 239778).


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