Why Hired-In Plant Needs Insurance

Most plant hire agreements shift responsibility to the hirer — you — once the equipment is delivered. That means if anything goes wrong, you’re liable, not the hire company.

The right insurance protects you from:

• Theft of machinery

• Accidental or malicious damage

• Transit damage between sites

• Ongoing hire charges if equipment is unusable

• Legal claims if the machinery causes injury or property damage

Even if you’re only hiring plant for a day or two, insurance is still essential.

Step 1: Understand What You’re Hiring

Before arranging cover, get a full breakdown of what you’re hiring:

• Equipment type (e.g. mini digger, telehandler, dumper)

• Quantity and model details

• Duration of hire

• Replacement value of the machinery

• Delivery and collection dates

• Site location(s) where the plant will be used

• Who will be operating the equipment (you, employees, or subcontractors)

Insurers use this information to calculate the right level of cover and to understand your risk profile.

Step 2: Know What Cover You Need

Hired-in plant insurance policies typically include the following core areas:

Hired-In Plant Cover

Protects against:

• Theft or attempted theft

• Accidental damage

• Fire, flood, or storm damage

• Vandalism

• Continuing hire charges (if the plant is out of use)

Transit Cover

Ensures your hired equipment is protected while being moved between sites — especially important for multi-location jobs or if you’re responsible for transporting it yourself.

Public Liability Insurance (Essential Add-On)

Covers injury or property damage caused by the use of the plant. This is often required by site managers, clients, and contractors.

Example: If a dumper you hired causes damage to a building or another vehicle, your public liability insurance would step in.

Employers’ Liability (If You Have Staff)

If your employees are operating the hired equipment, you must have this cover — it’s a legal requirement in the UK.

Step 3: Choose the Right Policy Type

Depending on how often you hire plant, you’ll need one of the following:

One-Off/Short-Term Policy

Ideal for single hires or short projects. Can be arranged for:

• 1 day

• 1 week

• Specific job durations

Annual Policy

Best for businesses that regularly hire plant. Offers better value and consistent protection across all hires.

Speak to a broker to decide which one suits your operations and cash flow best.

Step 4: Provide Key Information to Your Insurer

To get an accurate quote, your insurer or broker will need:

• Business name and description

• Type(s) of equipment you’re hiring

• Duration of hire(s)

• Estimated annual value of hired-in plant

• Site location(s) and security measures

• Claims history (past 3–5 years)

• Public or employers’ liability needs

• Named operators, if applicable

Make sure the sum insured reflects the full replacement value of the plant — not just your estimate.

Step 5: Confirm Your Policy Covers the Contract

Your hire agreement may include clauses that require specific types of cover, such as:

• Continuing hire charges

• Full replacement value

• Cover while in transit or stored overnight

• Evidence of insurance before release of equipment

Review your hire contract and make sure your insurance policy matches its terms. Your broker should help with this if you’re unsure.

Step 6: Keep Your Documentation Ready

Most sites or hire companies will ask for:

• Your certificate of insurance

• Details of hired-in plant cover

• Proof of public liability and employers’ liability cover

• Sum insured or policy schedule showing equipment values

Make sure this paperwork is readily available — especially if you’re bidding for work or collecting plant last minute.

Bonus: Common Mistakes to Avoid

• Assuming the hire company’s insurance covers you (it usually doesn’t)

• Not reading the fine print in your hire contract

• Underinsuring — always use the plant’s full replacement value

• Forgetting to notify your insurer when hiring new equipment

• Leaving plant uninsured while in transit or stored overnight

Need a quote or want to review your current policy?
Call us on 01474 833 322 or get a fast online quote at: www.abainsurance.co.uk/trades-insurance-quote/