What Is Plant Hire Insurance?

Plant hire insurance provides financial protection for hired-in or owned machinery used on construction sites, landscaping jobs, and civil engineering projects. It typically covers:

• Theft

• Accidental or malicious damage

• Transit damage

• Public liability related to plant use

• Continuing hire charges if equipment is damaged and out of use

This type of insurance is used by both contractors hiring plant and plant hire companies who lease machinery to others.

Is It a Legal Requirement?

There is no law that says you must have plant hire insurance.

However, there are legal obligations that indirectly make it necessary:

1. Contractual Liability

Most plant hire agreements transfer responsibility for the machinery to you, the hirer, the moment it’s delivered. This means:

• You are liable for any damage or theft

• You are responsible for ongoing hire charges if the plant is unusable

• You may be required to replace or repair equipment at full market value

While not enforced by law, these contract terms are legally binding — and if you don’t have insurance, you’ll have to pay out of pocket.

2. Employers’ Liability (if you have staff)

If your business involves employees operating plant, employers’ liability insurance is a legal requirement in the UK. This protects you if an employee is injured while working with plant or machinery.

• Minimum cover: £10 million

• Failure to have this cover can result in daily fines

So while plant hire insurance isn’t legally enforced, associated covers like employers’ liability often are.

When Is Plant Hire Insurance Essential?

Even though it’s not a legal requirement, it’s still considered essential when:

• You hire plant from a third party (e.g. diggers, dumpers, rollers, or telehandlers)

• You supply plant to contractors or clients

• You work on large-scale or commercial projects

• Your contract or tender requires it

• You want to avoid covering damage or theft personally

What Happens If You Don’t Have It?

Without plant hire insurance, you could be held financially responsible for:

• The full replacement cost of stolen or damaged machinery

• Ongoing hire charges while the plant is unusable

• Property damage or injuries caused by the plant

• Legal disputes if you can’t meet the terms of your hire agreement

These costs can quickly exceed tens of thousands of pounds — especially on high-value machinery.

Industry Expectations and Best Practices

In practice, most reputable contractors and construction firms treat plant hire insurance as non-negotiable. You’ll often be asked to provide:

• A certificate of insurance before equipment is released

• Proof of liability cover for site access

• Evidence of cover for hired-in plant and public liability

If you don’t have the right insurance in place, you may be refused hire, denied site access, or disqualified from tenders.

Related Legal Requirements

While plant hire insurance itself is not mandated, some related policies may be:

Who Needs Plant Hire Insurance?

You should consider this cover if you are:

• A contractor or tradesperson using hired plant

• A landscaper, builder, or groundwork specialist

• A construction firm managing multiple sites

• A plant hire company leasing machinery to clients

• A business owner who signs hire agreements

If you’re taking responsibility for plant or machinery in any form, insurance is the safest (and often the only accepted) way to protect yourself.

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/