Do Contractors Need Their Own Insurance for Hired Plant?
Yes — in most cases, contractors hiring plant and machinery are contractually responsible for it and therefore need their own insurance. Whether you’re using the plant for a day or a month, the hire agreement typically places full liability on you as soon as the kit is delivered.
Without the right insurance, you could face significant costs for theft, damage, or legal claims — even if you weren’t at fault.
Why Contractors Need Hired-In Plant Insurance
If you’re a contractor who regularly hires plant — like diggers, dumpers, or generators — the hire company expects you to insure it while it’s in your possession.
That includes responsibility for:
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Theft from site or vehicles
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Accidental or malicious damage
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Transit risks while moving equipment
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Ongoing hire charges if the equipment is damaged and out of use
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Public liability if the plant causes damage or injury on-site
Even if the machinery isn’t yours, you’re the one using it — and most standard public liability or tools cover won’t protect hired-in plant by default.
What Kind of Contractors Need This Cover?
You’ll likely need hired-in plant insurance if you’re any of the following:
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A building contractor using plant on domestic or commercial sites
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A groundworker or landscaper hiring in diggers, trenchers, or rollers
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A subcontractor supplying your own machinery for a job
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A self-employed tradesperson managing occasional hires
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A construction firm juggling multiple hires across sites
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Anyone who signs a plant hire agreement on behalf of their business
What Does the Insurance Cover?
A comprehensive hired-in plant policy will protect you for:
| Cover Type | What It Includes |
|---|---|
| Theft | Covers loss from secure sites, compounds, or vans (subject to security terms) |
| Accidental Damage | Protection if the plant is damaged while in use or during setup |
| Fire, Flood or Storm Damage | Weather-related damage on-site |
| Malicious Damage | Vandalism or intentional harm caused by third parties |
| Continuing Hire Charges | Covers ongoing rental fees while the plant is unusable after an insured incident |
| Transit Damage (optional) | Damage while transporting machinery between jobs or to the site |
What About the Hire Company’s Insurance?
Some hire companies offer insurance as part of the rental — but there are a few issues to be aware of:
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It’s usually more expensive than arranging your own cover
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The excess can be very high
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Cover is often limited in scope (may exclude transit or certain damages)
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You’re still responsible for meeting the terms (e.g. security conditions)
That’s why many contractors prefer to arrange their own policy — to ensure proper protection, lower excess, and faster claims handling.
Real-World Scenarios Contractors Face
Scenario 1: A mini digger is stolen from a locked compound overnight.
Your hired-in plant insurance covers the full cost of replacement.
Scenario 2: A hired dumper causes property damage during unloading.
Public liability covers the damage, and hired-in plant insurance covers the machine repair.
Scenario 3: A scissor lift hired for a two-week job is damaged mid-project.
You’re liable for repair costs and continuing hire charges — both of which are covered.
What Should a Contractor’s Policy Include?
To stay fully protected, your insurance should cover:
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The full replacement value of hired machinery
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A clear excess structure you can afford
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Coverage for short-term or rolling hires
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Optional transit cover if you’re moving equipment yourself
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Public liability insurance for third-party injury or damage
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Employers’ liability if your staff operate the plant
Always check if your policy includes continuing hire charges — these are one of the most overlooked costs when things go wrong.
Can I Get a One-Off or Annual Policy?
Yes. Depending on how often you hire plant:
Short-Term/One-Off Hire:
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Ideal for jobs lasting a few days or weeks
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Flexible cover for occasional contractors
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Often arranged quickly with minimal admin
Annual Policy:
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Best for contractors who hire plant frequently
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More cost-effective over the year
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Covers multiple sites and multiple items
Speak to a broker to determine which type suits your workload and contract frequency.
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/
