What Is Plant Hire Insurance?

Plant Hire Insurance provides protection for specified risks involving construction plant, machinery and equipment.

Depending on your business, you may require cover for machinery hired from another company, plant you own or equipment you hire out to customers.

These arrangements can involve different insurance responsibilities, so it is important to establish who owns the equipment, who is using it and what the hire agreement requires.

Plant Hire Insurance may form part of a wider Contractors’ Plant or Contractors’ Combined Insurance policy, or it may be arranged separately.

Types of Plant Hire Insurance

Cover is subject to insurer acceptance, policy limits, exclusions, excesses and applicable security conditions.

Hired-In Plant Insurance

When hiring construction machinery, your business may become responsible for the equipment under the terms of the hire agreement.

If the machinery is stolen or damaged while in your possession, you could face significant costs.

Hired-In Plant Insurance may provide protection for specified liabilities relating to loss or damage to hired equipment.

Depending on the policy, insured events may include:

• Theft of hired construction machinery.
• Accidental damage during permitted use.
• Vandalism and malicious damage.
• Fire and certain other insured events.
• Loss or damage during permitted transportation.

Cover for continuing hire charges may also be available where the policy expressly provides for it.

It is important to review the hire agreement alongside the insurance policy because contractual liabilities are not always covered in full.

Owned Plant Insurance

Contractors who own construction machinery may need insurance against theft, accidental damage and other insured losses.

Owned Plant Insurance can be relevant for businesses using machinery across construction sites, depots and other working locations.

Equipment values should be reviewed carefully to ensure that the sums insured and basis of settlement are appropriate.

Policies may differ in how they calculate settlement values, including market value or other specified valuation bases.

Insurance for Plant Hire Companies

Businesses hiring machinery to other contractors may face different risks from companies that simply hire equipment for their own use.

Plant hire companies should consider:

• Machinery owned and hired out to customers.
• Dry hire arrangements without an operator.
• Operated plant hire involving your own employees.
• Equipment held at depots or storage facilities.
• Transport and delivery arrangements.
• Customer hire agreements and responsibilities.
• Theft, damage and recovery procedures.

Cover for plant hired out to third parties must be specifically considered. A standard Owned Plant policy may not automatically insure every hire arrangement.

What Types of Plant and Machinery Can Be Insured?

Specialist insurance may be available for a wide range of construction plant and equipment.

The types of machinery accepted and the conditions applying to each item will depend on the insurer.

Plant Theft Insurance

Theft is a significant consideration for businesses using construction plant, particularly where machinery is left on sites outside working hours.

Replacing stolen machinery can be expensive and may also disrupt project schedules.

Plant Insurance may provide protection against qualifying theft losses, subject to the policy’s security conditions.

Insurers may consider:

• Site security and perimeter protection.
• Where machinery is stored overnight.
• Immobilisers and tracking devices.
• Key control procedures.
• Machinery identification and registration.
• Previous theft incidents.

Some policies impose specific requirements for unattended plant, keys, immobilisation or storage locations.

Failure to comply with applicable conditions may affect a claim.

Accidental Damage to Hired Plant

Construction machinery operates in demanding environments where accidental damage can occur.

Examples include machinery being damaged during permitted site operations, collisions with obstacles or other unexpected incidents.

Specialist Plant Insurance may provide cover for certain accidental damage events.

However, policies commonly distinguish accidental damage from mechanical breakdown, wear and tear, gradual deterioration or defective maintenance.

These exclusions should be reviewed before cover is arranged.

Continuing Hire Charges Insurance

When hired machinery is damaged or stolen, the hire company may continue to charge rental fees while the equipment is unavailable or until the hire agreement is resolved.

Some Hired-In Plant Insurance policies include cover for qualifying continuing hire charges following an insured loss.

This cover may be subject to:

• A maximum indemnity period.
• Specified financial limits.
• Conditions within the hire agreement.
• The circumstances of the insured loss.
• Policy excesses or other restrictions.

Continuing hire charges should not be assumed to be automatically covered under every policy.

Plant Hire Insurance and Hire Agreements

Hire agreements often place specific responsibilities on the contractor hiring the machinery.

Before accepting equipment, businesses should understand:

• Who is responsible for insuring the machinery.
• When responsibility for the equipment begins and ends.
• Whether the agreement requires insurance for the full replacement value.
• Any continuing hire charge obligations.
• Transport and collection responsibilities.
• Security and storage requirements.
• Any additional contractual indemnities.

Insurance policies may not cover every liability assumed under a hire agreement.

Where possible, contractual insurance requirements should be checked before hiring equipment.

Do I Need Public Liability Insurance with Plant Hire Insurance?

Plant Insurance and Public Liability Insurance protect against different types of risk.

Plant Insurance generally concerns insured loss or damage to machinery, while Public Liability Insurance may protect against certain legal liabilities arising from injury to third parties or damage to their property.

For example, damage to a hired excavator and damage caused by that excavator to a third party’s property may involve different insurance covers.

Contractors may also require Employers’ Liability Insurance where they employ staff, subject to applicable legal exemptions.

Businesses providing operated plant hire should ensure that their insurance reflects the activities of their machinery operators.

Plant Machinery Used on Public Roads

Some construction machinery may be driven or operated on public roads.

Plant Insurance does not automatically provide all compulsory motor insurance protection required for road use.

Where machinery is used on roads or in other circumstances requiring motor insurance, suitable Road Risks cover may be necessary.

Insurers should be informed of the intended use, including any road registration and transport arrangements.

What Does Plant Hire Insurance Not Cover?

Plant Hire Insurance policies may contain important exclusions and restrictions.

Depending on the policy, these may include:

• Mechanical or electrical breakdown unless specifically insured.
• Wear and tear or gradual deterioration.
• Damage arising from inadequate maintenance.
• Deliberate or unlawful acts.
• Uninsured or undisclosed machinery.
• Use outside the declared activities or territories.
• Failure to meet security conditions.
• Continuing hire charges unless expressly covered.
• Contractual liabilities outside the insured terms.
• Motor liabilities requiring separate Road Risks insurance.
• Losses exceeding policy limits or falling within excesses.

Some exclusions may be addressed through specialist extensions or separate policies, depending on insurer appetite.

How Much Does Plant Hire Insurance Cost?

Plant Hire Insurance premiums depend on the machinery involved, its value and how it is used.

Because plant risks can vary considerably, a specialist quotation is usually needed to assess the appropriate cover and premium.

What Information Is Needed for a Plant Hire Insurance Quote?

To help us explore suitable insurance options, we may ask for:

• Your business name and trading activities.
• Whether you require hired-in, owned or hired-out plant cover.
• The types of machinery involved.
• The maximum value of plant at risk at any one time.
• Individual machinery values where relevant.
• Annual plant hire expenditure or hire income, as applicable.
• Where the machinery will be used and stored.
• Security arrangements and tracking systems.
• Whether machinery is transported or used on public roads.
• Details of any operated plant hire activities.
• Previous theft, damage or insurance claims.
• Any specific insurance requirements in hire agreements.

Insurers may request additional details depending on the equipment, business activities and proposed cover.

Reducing the Risk of Plant Theft and Damage

Effective risk management can help protect valuable machinery and reduce disruption to construction projects.

Relevant measures may include:

• Using suitable immobilisers and tracking systems.
• Maintaining secure storage and site boundaries.
• Controlling access to machinery keys.
• Recording equipment serial numbers and identification details.
• Maintaining machinery in accordance with manufacturer guidance.
• Providing appropriate operator training.
• Completing relevant inspections and maintenance records.
• Using suitable loading and transportation procedures.
• Reporting theft or damage promptly.

Insurers may impose specific risk management conditions, so these should be understood and followed.

Frequently Asked Questions About Plant Hire Insurance

What is Hired-In Plant Insurance?

Hired-In Plant Insurance provides protection for specified loss or damage to machinery hired from third parties, subject to the policy wording and relevant hire agreement.

Does Plant Hire Insurance cover theft?

Many Plant Insurance policies provide cover for qualifying theft losses, subject to security requirements, policy limits and exclusions.

Does Plant Hire Insurance cover accidental damage?

Cover may be available for certain accidental damage events. Mechanical breakdown, wear and tear and other excluded causes of damage may not be covered.

Can I insure hired excavators and diggers?

Specialist insurance may be available for excavators, diggers, dumpers, telehandlers and other eligible construction machinery.

Does Plant Hire Insurance cover continuing hire charges?

Some policies include cover for qualifying continuing hire charges following insured loss or damage, subject to specific limits and conditions.

Can plant hire companies insure machinery hired out to customers?

Specialist insurance may be available for machinery hired out to third parties, but the hire arrangements and business activities must be accurately disclosed.

Does Plant Hire Insurance include Public Liability?

Not necessarily. Public Liability Insurance is a separate type of protection, although it may be arranged alongside plant cover as part of a wider commercial insurance package.

Can I insure plant machinery used on public roads?

Machinery used on public roads may require appropriate Road Risks insurance. Standard Plant Insurance should not be assumed to provide compulsory motor cover.

Is Plant Hire Insurance legally required?

There is no universal legal requirement to purchase a policy called Plant Hire Insurance, but hire agreements may impose insurance obligations. Separate compulsory motor or Employers’ Liability requirements may also apply depending on the circumstances.

Why Choose Edison Ives for Plant Hire Insurance?

Plant hire arrangements can involve substantial equipment values and complex contractual responsibilities.

At Edison Ives, we aim to understand how your machinery is owned, hired and used before exploring suitable insurance options.

Our approach includes:

• Understanding your plant hire and construction activities.
• Exploring specialist insurance markets where appropriate.
• Considering hired-in, owned and hired-out machinery exposures.
• Reviewing continuing hire charge requirements.
• Helping you understand relevant exclusions and security conditions.
• Providing personal broker support throughout the insurance process.

Part of David Roberts & Partners

Edison Ives is proud to be part of David Roberts & Partners Ltd, an independent insurance broker group.

Our group relationship supports access to wider insurance expertise and markets while allowing us to maintain a personal approach to our clients.

Contact Edison Ives

Call 0113 390 4646

Email info@edinsure.co.uk