The responsibility for insuring hired plant almost always falls on the contractor or business that hires it — not the plant hire company or end client. Once the equipment is delivered and signed for, you’re typically liable for damage, theft, and ongoing hire charges.

Understanding who needs to arrange cover is critical — especially if you’re signing plant hire agreements or working under main contractors.

Who Is Liable for Hired Plant?

In nearly all cases, the party hiring the plant (you) is responsible for:

• Physical damage

• Theft or vandalism

• Transit-related risks

• Ongoing rental charges if equipment is out of action

• Meeting security and operational conditions

This liability is usually outlined in the hire contract, which often places full responsibility on the hirer from the moment the plant arrives on site — regardless of who operates it.

What Does the Hire Contract Say?

Most standard hire contracts (e.g. CPA or HAE terms) include clauses such as:

“The hirer is responsible for the safekeeping of the plant and shall make good to the owner all loss or damage to the plant.”

That means you’re on the hook — not the plant hire company — even if:

• You don’t use the equipment

• The machine is damaged by another subcontractor

• It’s stolen from a secure site overnight

• You thought someone else had cover

Always read your hire agreement carefully. If you’re unsure, ask your broker to review it before the job starts.

What About the Hire Company’s Insurance?

Some hire companies offer optional insurance, but:

• It’s often not included automatically

• Cover can be expensive or limited

• Excess fees are usually high

• You still need to meet strict conditions for the policy to respond

For most contractors, arranging your own hired-in plant insurance gives you:

• Greater control

• Better terms

• A clearer claims process

• Lower excesses

When Might a Client Be Responsible?

In some larger contracts, the end client may arrange a blanket policy that covers all equipment and contractors. However, this is rare and typically only seen on:

• Major public infrastructure projects

• Long-term framework contracts

• Sites with a centralised procurement and insurance function

Even then, you may still be asked to prove that your company carries its own liability and equipment cover.

Don’t assume you’re covered under someone else’s policy — unless it’s clearly stated in writing.

Common Scenarios

Scenario 1: You hire a mini digger for a garden job.
It’s stolen overnight from site. You’re responsible — and must claim through your own hired-in plant insurance.

Scenario 2: A client arranges all plant through their own supplier.
They agree (in writing) to insure the machinery. You are not liable — as long as this is part of the formal contract.

Scenario 3: A machine you hire is damaged by another subcontractor.
You’re still liable to the hire company — you can then try to recover costs from the party at fault.

What If You Don’t Have Insurance?

If you’re responsible and uninsured, you could face:

• Full replacement costs for stolen or written-off equipment

• Repair bills for damaged plant

• Continuing hire charges while equipment is being fixed

• Legal disputes with the hire company or client

• Potential loss of future work if you can’t meet site requirements

Some of these costs can exceed £10,000 — or more — for larger machinery.

How to Make Sure You’re Properly Covered

If you’re hiring plant, you should:

• Check the hire contract for insurance terms

• Confirm who is responsible in writing

• Arrange your own hired-in plant insurance before the equipment arrives

• Ensure your policy includes:

  • Theft

  • Accidental damage

  • Continuing hire charges

  • Transit (if you’re moving the equipment)

• Consider bundling in public liability and employers’ liability for full protection

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/