Why Insurance Is Essential When Hiring Out Plant

When you rent out plant — whether it’s excavators, dumpers, telehandlers, generators, or smaller tools — you’re handing over expensive equipment to another business. From that point forward, anything can go wrong:

• The machine is stolen from site

• It’s damaged through operator error

• It causes injury or damage to third parties

• The hirer disappears or refuses to pay for repairs

Without insurance, you’re relying entirely on the hirer’s policy or willingness to pay — and in many cases, that’s a risky bet.

What Insurance Should You Have?

1. Owned Plant Insurance

This covers your plant and machinery while it’s on hire. It typically protects against:

• Theft

• Malicious damage

• Fire or weather-related damage

• Accidental damage on-site or in transit

You can insure individual items or your full fleet. Be sure to check if your policy includes:

• Cover while equipment is on customer sites

• Cover while plant is in transit to and from jobs

• Cover for different types of machines (tracked, wheeled, self-propelled)

2. Continuing Hire Charges Insurance

If a customer damages your plant and it’s out of action, you’re not only paying for repairs — you’re also losing income.

This type of insurance helps recover:

• Lost hire revenue while your plant is being fixed or replaced

• The cost of substitute hire, if needed

Many hire businesses underestimate how costly ongoing hire losses can be, especially on popular or high-value items.

3. Public Liability Insurance

Even if you’re not operating the machinery yourself, you could still be dragged into a legal claim if your equipment:

• Injures someone on site

• Damages a building or another vehicle

• Malfunctions due to an undetected fault

Having your own public liability insurance is essential — particularly if you provide operators or deliver and install plant on site.

4. Employers’ Liability Insurance (if applicable)

If you employ staff — even delivery drivers or site engineers — you’re legally required to carry employers’ liability insurance. This covers injury or illness suffered by employees due to their work with or around plant equipment.

5. Contractual Liability Protection

Many plant hire contracts contain clauses about damage, theft, maintenance responsibilities, and site security. Insurance that reflects your contract terms is key to avoiding disputes and unpaid claims.

Common Scenarios That Lead to Insurance Claims

• A hired-out dumper is left unsecured and stolen overnight

• A client’s operator rolls a machine, causing structural damage

• An excavator leaks hydraulic fluid and contaminates the ground

• A hired telehandler hits a neighbouring property wall

• A disagreement over liability causes the client to delay payment for repairs

Having the right insurance in place ensures you’re covered — even when the blame is disputed or the client is uninsured.

What If My Clients Have Their Own Insurance?

Even if your clients have hired-in plant cover, you’re still responsible for:

• Verifying the policy exists and is valid

• Ensuring your equipment is named or correctly covered

• Recovering costs if they refuse or delay payment

Many experienced plant hire firms still carry their own cover — because relying solely on the customer’s policy is a major business risk.

Do I Need Different Cover for Operated and Self-Drive Hire?

Yes. If you provide a machine with an operator (operated hire), you take on more responsibility. You may need:

• Increased liability cover

• Employee/operator-specific insurance

• Use-specific endorsements on your policy

If you offer both self-drive and operated plant, make sure your insurer is aware — and your policy covers each type correctly.

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/