2026 April 09
A practical note for owners of heavy plant & equipment during a time of conflict.
Recent events in the Middle East have increased volatility in global energy markets. While New Zealand’s fuel supply remains secure, diesel prices have risen sharply and may remain elevated for some time.
For businesses that rely heavily on plant and machinery, fuel is now a material operating cost that directly affects utilisation decisions, margins, and project sequencing.
For some operators, this environment raises a practical question: should parts of the fleet be parked up temporarily and, if so, does your insurance programme reflect that?
When higher diesel prices change utilisation, contractors are reassessing whether all machines need to be running continuously, whether some plant can be parked up between contracts, and whether marginal or standby machinery is better held off‑line until conditions improve.
If plant is genuinely not being used for an extended period, there may be insurance premium efficiencies available — but only if this is done correctly.
Many specialist mobile plant policies include a ‘laid‑up’ option for machinery that is temporarily out of operation and stored securely. In broad terms, a machine may be declared laid up where it is not being used for a continuous period (often a minimum of 30 days). During this time, cover is restricted and insurers may apply a pro‑rata premium credit or reduced rate. Critically, a laid‑up machine must not be used until it is formally returned to full cover.
Specialist insurers may provide laid‑up options within their plant policies, subject to specific conditions around security, declaration, and notification.
Incorrectly handling laid‑up machinery can create unintended gaps, including machines being used while still noted as laid up (resulting in no cover), plant being parked without insurer notification, or security conditions not being met while machinery is idle.
Given current fuel costs, it may be timely to ask which machines are genuinely idle, how long they are likely to be parked, whether laid‑up provisions apply, and whether potential premium relief outweighs operational constraints.
ICIB works closely with specialist plant insurers to review fleet utilisation, confirm laid‑up eligibility, manage declarations correctly, and ensure machines are returned to full cover before they go back to work.
Rising fuel prices are a commercial reality. Insurance won’t change fuel costs — but where fleets are parked up, insurance programmes should adapt accordingly.
If you would like to discuss whether a review makes sense for your operation, please contact your ICIB adviser.
insurance@icib.co.nz
0800 644 444