What hired-in plant insurance is
Hired-in plant insurance is designed to respond to loss of or damage to equipment that you have hired from someone else, while it is in your custody and control. The owner of the machine is not the person buying the cover: you are insuring your responsibility for the machine under the hire agreement.
That responsibility is set by the contract, not by this policy. Some hire agreements make the hirer liable for any loss or damage regardless of fault, require the hirer to insure the machine for its full replacement value, and charge for the time the machine is out of service while it is repaired.
Read the hire agreement first
Identify who bears the risk, the value you must insure for and any evidence of insurance required before delivery.
Decide how to meet the obligation
Options include the hire company’s own damage waiver, an arrangement under your own policy, or a separate hired-in plant policy.
Check the gap between the two
Compare what the hire agreement requires with what your chosen arrangement actually covers, including excesses and exclusions.
Who may need hired-in plant insurance
- Contractors who regularly hire excavators, rollers, compactors, generators and cranes for short periods instead of owning them.
- Contractors who need specialist equipment for a single project and do not want to carry it on their own plant policy.
- Main contractors who hire plant for subcontractors, or who accept responsibility for plant supplied by subcontractors.
- Contractors who hire from several companies, each with different agreements and different insurance requirements.
What may be insured, subject to terms
- Loss or damage to hired equipment
- Accidental loss or damage while the equipment is in your care, custody or control, such as fire, collision, overturning and theft subject to the security conditions.
- Attachments and accessories
- Buckets, breakers and similar items supplied with the machine are often part of the hire. Check that they are included in the value insured.
- Transit and loading
- Hire companies usually deliver and collect, but your responsibilities may begin at a defined point. Ask where cover starts and stops.
- Loss-of-use or hire charges
- The hire agreement may charge you while a damaged machine is out of service. Some arrangements address this, others do not. Ask specifically.
Important limitations and questions to discuss
- Hire agreement obligations
- The agreement may require you to insure for full replacement value, note the owner’s interest and provide evidence of cover before delivery. If your cover does not match, you may be in breach even if you are insured.
- Damage waivers
- Hire companies sometimes offer their own damage waiver for a fee. Waivers commonly exclude items such as tyres, negligence, theft where security conditions are not met, and operator misuse. Read the exclusions.
- Wet and dry hire
- In a dry hire you hire the machine and normally supply and control the operator. In a wet hire the hire company supplies the operator, which can change who is responsible. The agreement should say so.
- Excesses and exclusions
- Check the excess per claim and whether any exclusions apply to the machine type you hire, for example cranes or specialist equipment.
- Security and storage
- Cover for theft of hired plant is usually conditional on the same kind of security measures that apply to your own plant.
- Third-party damage
- Damage caused by the hired machine to other people’s property is a liability question for your public liability policy, not for the hired-in plant cover.
Questions to put to the hire company
Before you sign the hire agreement
- Who bears the risk of loss or damage while the machine is on site?
- What value must I insure the machine for, and on what basis?
- When must I provide evidence of insurance, and in what form?
- What does the damage waiver cost, and what does it exclude?
- Who is responsible for the machine during delivery, loading and collection?
- What operator competence evidence is required?
- Will I be charged hire fees while the machine is being repaired?
- Which attachments are included in the hire and in the insured value?
Our guide to hired-in plant insurance responsibilities explains why these questions matter and how to approach them with your hire company.
Information we usually need for a quotation
To quote hired-in plant cover we need to understand what you hire and on what terms.
- A copy of a typical hire agreement, or the hire company’s standard terms.
- The types of equipment you hire and the approximate replacement values.
- Your annual hire spend and the typical length of each hire.
- Whether you hire wet or dry, and who supplies the operator.
- How and where the hired machines are stored and secured on your sites.
- Your existing plant policy and how it treats hired-in equipment, if at all.
- Your claims history, including any claims or disputes arising from hired plant.
You do not need everything on day one. A short description of the work is enough to start, and the quote form only asks for the details relevant to your enquiry.
Frequently asked questions
Does the hire company’s damage waiver replace insurance?
It may satisfy the hire agreement, but a waiver is a commercial arrangement with its own exclusions, not insurance for you. Compare what it covers with what the agreement requires of you.
Who is responsible if a wet-hired machine is damaged by the operator?
It depends on the agreement. In a wet hire the operator is usually supplied by the hire company, but the hirer can still be responsible for the machine and for the operator’s instructions on site. Have the clause reviewed.
Does my own plant policy cover hired-in machines?
Only if it says so. Many plant policies are limited to machines you own or lease. Ask whether hired-in plant is included, and on what conditions.
When should I arrange cover?
Before the machine is delivered. Many agreements require evidence of insurance first, and starting early avoids a gap in cover.
Related cover
- Plant All RiskCover for excavators, loaders, rollers and other contractors’ plant against accidental loss or damage, subject to terms.
- Owned plantInsurance structured around a contractor’s own plant portfolio, from a single schedule to values, finance interests and changes during the year.
- Public liabilityCover aimed at your legal liability to third parties for injury and property damage arising from your work.
- Sasria coverSpecial-risk cover for events such as riot, strike and public disorder, which standard policies normally exclude.
Related guides
- Hired-in plant: insurance responsibilities explainedWhy contractors should review hire terms and insurance for hired-in plant: who bears risk, damage waivers, wet and dry hire, evidence of insurance and charges.
- What affects the cost of plant insuranceWhat affects plant insurance cost for contractors: valuation, equipment type and age, usage, location, security, operators, excess and claims record. No premium rates.
Industries this applies to
- Plant hire businessesOwnership, hire terms, damage waivers and machinery use for businesses that hire out plant.
- Earthmoving contractorsPlant, transit, underground services and ground stability for bulk earthworks and site preparation.
- Construction subcontractorsFlow-down requirements from the main contract, liability limits, tools and evidence of cover for subcontractors.