When you hire plant machinery, the responsibility for that machine sits with you from the moment it is delivered to the moment it is collected, and that includes having the right insurance in place. It is one of the most common things people overlook when hiring, so if you are wondering do you need insurance when hiring plant machinery, the answer is yes, and this guide explains exactly what you need to know before your hire begins. Whether you are a contractor or a homeowner hiring a mini digger for a weekend project, if the machine gets damaged or stolen while it is in your care, the cost falls on you unless you are properly covered.
A lot of hirers assume the plant hire company covers everything. It is an easy assumption to make, but it is not how hire contracts work. As standard across the industry, the responsibility for any loss or damage passes to you, the hirer, as soon as the machine leaves the yard. We keep every machine fully maintained and regularly inspected, but once it is on your site, it is your responsibility.
The financial exposure here is real. If a 1.5 tonne mini digger were stolen from your site, the replacement cost could be up to £17,000. A 3 tonne mini digger could be up to £32,000. On-site accidental damage can also be significant depending on what has happened. These are not small numbers, and they are the kind of bill that can seriously affect a small business or an individual if they are caught without cover.
At Central Plant Hire, all equipment must be covered for loss or damage before it leaves our yard. That means you will need to either show us a copy of your own hired-in plant insurance policy, or take our Loss and Damage Waiver at the point of booking. If you are hiring from another company, it is always worth checking their requirements in advance as policies vary, but as a general rule reputable hire companies will want to know the equipment is covered before it goes out. Do not leave it until the last minute.
This is where a lot of people get caught out. Many hirers assume their existing liability policy, or in the case of homeowners, their buildings and contents insurance, will cover hired-in plant equipment. In most cases it will not. Unless your policy specifically states “hired-in plant insurance,” you are not covered for loss or damage to machinery you have hired. It is worth checking your policy wording carefully before you hire, and if you are not sure, speak to your insurer directly before booking.
Business owners should also check their contractors all-risk or plant and equipment policies. Some do include hired-in plant as standard, but many do not, and the wording can be vague. Do not assume, check.
When people ask do you need insurance when hiring plant machinery, they often do not realise there are two different ways to get covered, and they are not the same thing.
Hired-in plant insurance is a policy you arrange yourself, either as a standalone product or as part of your existing business insurance. You pay a premium, and in the event of a claim you go through your insurer. If you hire machinery regularly, this can be a cost-effective route.
A Loss and Damage Waiver is different. It is not an insurance product, it is a contractual arrangement between you and the hire company. By taking the Waiver, you are agreeing that the hire company will not hold you financially responsible for loss or damage to the machine, subject to certain conditions and an excess in the event of a claim.
At Central Plant Hire, we offer the HireSecure Loss and Damage Waiver through our membership with the HAE (Hire Association Europe). It costs 15% of the net hire charge plus VAT and covers you from the moment you take possession of the equipment to the moment it is returned or collected. For most short-term hirers, this is the simplest and most straightforward option. Some restrictions apply, so just ask us when you book and we will go through the full details with you.
Whether you are using your own insurance or a Loss and Damage Waiver, cover does have limits. While the exact terms will always depend on your specific policy or Waiver conditions, situations that are commonly excluded include:
This is not an exhaustive list and you should always read your policy or Waiver terms carefully. If you are taking our Loss and Damage Waiver, just ask us for the full details at the point of booking and we will make sure you understand exactly what is and is not included.
Covering the machine itself is only part of the picture. It is also worth thinking about public liability, that is, cover for damage your machine causes to third-party property or injury to someone else. Plant machinery can cause significant damage if something goes wrong: a fence, a parked car, an underground pipe, a neighbour’s wall. In a worst-case scenario, it could involve injury to a bystander.
Public liability insurance is separate from hired-in plant insurance and is something you should consider regardless of the size of your project. Many contractors will already have this as part of their business insurance, but homeowners and self-builders often do not. We would always recommend speaking to an insurance broker if you are unsure what cover you have in place.
Do you need insurance when hiring plant machinery even for a small job at home? Yes, the same rules apply. If you are hiring a micro digger to put in a driveway or a dumper to shift soil in your garden, you still take on responsibility for that machine. Standard home insurance will not cover it. The cost of the Waiver on a short hire is small compared to the risk you would be carrying without it, so it makes sense whatever the size of the job.
To make things simple, here is what you should have sorted before your hire starts:
Getting these things sorted in advance means there are no delays on the day and no nasty surprises further down the line.
So, do you need insurance when hiring plant machinery? Yes, and at Central Plant Hire we make sure you know exactly where you stand before anything leaves our yard. We will always talk you through your options and make sure the right cover is in place before your hire begins. We would rather have that conversation upfront than leave anyone exposed.
If you have any questions about insurance, our Loss and Damage Waiver, or anything else to do with your hire, get in touch with our team today. We are always happy to help.
