My Account
Machinery Relocation Insurance (Factory Moves): A UK Guide for Construction & Engineering Projects
Introduction: why factory moves are high-risk
Moving machinery isn’t just “transport”. A factory relocation often involves dismantling, lifting, temporary storage, road haulage, reinstallation, testing, and commissioning. Each stage introduces new risks: damage to high-value assets, delays that stop production, and liabilities to landlords, neighbours, and third parties.
For UK businesses, the stakes are even higher when the move is tied to a construction or engineering project—new premises fit-out, structural alterations, crane lifts, or installation works. That’s where machinery relocation insurance (often arranged alongside construction engineering insurance) becomes a practical way to protect cashflow and keep a project on track.
What is machinery relocation insurance?
Machinery relocation insurance is specialist cover designed for the period your equipment is being moved from one location to another.
Depending on how it’s arranged, it may sit within:
- A dedicated “machinery movement/relocation” policy
- A contract works / erection all risks (EAR) policy for installation projects
- A contractors’ plant policy (for certain types of plant)
- A marine cargo / goods in transit policy (for the transit element)
The right structure depends on what’s being moved, who is responsible at each stage, and whether there is construction/installation work involved.
Why combine it with construction & engineering insurance?
Factory moves often overlap with construction engineering activities:
- New foundations, plinths, pits, or mezzanines
- Electrical upgrades and new switchgear
- Compressed air, gas, water, steam, and extraction systems
- Crane lifts, jacking, skidding, and rigging
- Commissioning and performance testing
Construction engineering insurance (such as contract works, EAR, or contractors all risks) is designed to cover physical works and, in many cases, the plant and equipment being installed.
If you only insure the “building works” but not the machinery movement and installation phases, you can end up with gaps—especially around loading/unloading, temporary storage, and testing.
What does machinery relocation insurance typically cover?
Cover varies by insurer and wording, but common sections include:
1) Physical loss or damage during relocation
This can include damage caused by:
- Accidental impact, dropping, or collision
- Incorrect lifting or slinging
- Overturning during transit
- Fire, flood, or theft during storage
- Vibration or shock damage (where insured)
Some policies are “all risks” (subject to exclusions) and others are named perils. “All risks” is usually preferred for complex relocations.
2) Loading, unloading, and on-site movement
A key point: many standard transit policies focus on road haulage only. Factory moves often involve multiple lifts and internal moves—forklifts, skates, gantries, cranes—where a lot of damage occurs.
3) Temporary storage
If machinery is stored in a warehouse or on a third-party site between locations, you’ll want clarity on:
- Maximum storage period
- Security requirements (alarms, CCTV, fencing)
- Whether storage is covered at multiple addresses
4) Installation, re-erection, and commissioning
If the relocation includes installation and testing, engineering-style cover (EAR) can extend protection through:
- Reassembly and alignment
- Electrical connection
- Test runs and commissioning
This is often where construction engineering insurance becomes essential.
5) Debris removal and expediting expenses (optional)
Some wordings can include:
- Debris removal after an insured event
- Expediting expenses to reduce downtime (e.g., overtime labour, express freight)
These extensions can be valuable when production deadlines are tight.
What’s usually not covered (common exclusions)
Always check the wording, but typical exclusions include:
- Wear and tear, gradual deterioration, corrosion
- Mechanical or electrical breakdown (unless specifically included)
- Inherent vice (damage due to the item’s nature)
- Faulty workmanship or defective design (sometimes covered for resultant damage only)
- Scratching, denting, or cosmetic damage (unless agreed)
- Unexplained disappearance / inventory shortage
- Poor packing or inadequate securing (unless standards are met)
For factory moves, two exclusions matter most:
- Faulty lifting/rigging (or failure to follow method statements)
- Pre-existing defects (damage that existed before the move)
Key risks in a factory move (and how insurance responds)
Damage during lifting and rigging
Large CNC machines, presses, injection moulders, and production lines often require specialist rigging. If a machine is dropped or twisted during a lift, the damage can be severe—and not always obvious until commissioning.
Good insurance should cover accidental damage during lifting, but insurers will expect:
- Competent contractors
- Lift plans and method statements
- Suitable lifting equipment and certified operators
Shock and vibration damage
Some equipment is sensitive: lasers, metrology tools, medical manufacturing equipment, and electronics. Even if it arrives “intact”, vibration can knock it out of tolerance.
If you have sensitive kit, ask specifically about:
- Shock/vibration cover
- Calibration and alignment costs
- Testing/commissioning cover
Theft and security during storage
Machinery is attractive to thieves for parts, copper, and resale. Storage sites can be a weak link.
Insurers may require:
- Locked buildings
- Alarm systems and keyholder response
- CCTV and perimeter security
- Inventory lists and serial numbers
Delays and business interruption
A relocation can stop production for days or weeks. Physical damage can extend downtime.
Machinery relocation insurance is usually focused on physical damage, not loss of profit. If downtime exposure is high, consider:
- Business interruption (BI) extensions where available
- Increased cost of working
- Project delay cover (in some construction/engineering placements)
Who should arrange the cover: you or the contractor?
It depends on contract terms and who has “care, custody, and control” at each stage.
Common approaches:
- Your policy covers your machinery end-to-end, while contractors carry liability and their own plant cover.
- The relocation contractor provides a project cargo/relocation policy, with you noted as an insured party.
- A combined project policy (EAR/contract works) covers installation works and the equipment being installed.
The key is avoiding gaps and double-insurance confusion. The contract should clearly state:
- Who insures what
- Policy limits and deductibles
- Responsibility during each phase
- Evidence of insurance (certificates and key clauses)
How to set the right sum insured
Factory moves fail financially when values are understated.
Consider:
- Replacement cost new (not book value)
- Freight, duties, and installation costs
- Rigging and specialist labour
- Software, controls, and tooling
- Spares that travel with the machine
If you’re moving a production line, it may be better to schedule items individually with values and serial numbers.
Information insurers will ask for (get this ready)
To quote accurately, insurers typically want:
- Full inventory list (make/model/serial/value)
- Move dates and route (including storage addresses)
- Method statements and lift plans
- Details of riggers/hauliers (experience, accreditations)
- Packing and securing methods
- Crane details and lift capacities
- Any hazardous materials or special handling
- Commissioning/testing plan
- Contract terms and responsibility split
Having this prepared can reduce delays and help you negotiate better terms.
Practical risk management tips (that also help premiums)
- Use specialist machinery movers with proven experience in your equipment type
- Photograph and video machinery condition before dismantling
- Record serial numbers and create a signed handover checklist
- Use shock indicators/tilt sensors on crates for sensitive equipment
- Confirm floor loadings, access routes, and door heights at the new site
- Plan for weather exposure during loading/unloading
- Secure storage sites and limit access to authorised personnel
- Schedule commissioning engineers early to avoid extended downtime
How construction engineering insurance fits in (contract works, EAR, CAR)
If your relocation includes installation and construction works, you may need a broader policy structure:
Contract works / contractors all risks (CAR)
Typically covers the building works and materials on site. It may not automatically cover the machinery being moved unless specifically included.
Erection all risks (EAR)
Often used for mechanical and electrical installation projects. EAR can be a better fit when the project is primarily installation/engineering rather than general building work.
Testing and commissioning
This is a critical phase. Ensure the policy covers:
- Cold testing (non-operational checks)
- Hot testing (operational testing)
- Performance testing and handover
If this isn’t included, you could be exposed exactly when faults and damage are most likely to show up.
Common mistakes to avoid
- Assuming your standard property policy covers machinery “in transit”
- Relying on a haulier’s limited liability instead of insurance
- Underinsuring values (especially older machines that are expensive to replace)
- Forgetting temporary storage and internal moves
- Not extending cover through commissioning and testing
- Not aligning insurance responsibilities with the contract
Quick checklist: do you need machinery relocation insurance?
You likely do if:
- Any single item is high value or hard to replace
- The move involves cranes, heavy lifts, or complex rigging
- There is temporary storage between sites
- The new site requires installation and commissioning
- Downtime would materially impact revenue or contracts
Call to action
Planning a factory move in the UK? If you want to reduce risk and avoid expensive insurance gaps, we can help you structure machinery relocation cover alongside construction engineering insurance—so your equipment, installation works, and commissioning phase are protected end-to-end.
Speak to Insure24 for a quick, practical review of your move plan and the cover options available. Call 0330 127 2333 or request a quote via https://www.insure24.co.uk/.