Your plant and machinery insurance questions answered

A typical policy provides protection against Accidental Damage, Fire, Flood, Theft or Attempted Theft and Malicious Damage as well as other additional perils in respect of a machine you have hired. This ‘All Risks’ cover provides cover for a wide range of potential scenarios.

Cover will be provided in respect of the machinery while on site, in transit or whilst stored off-site. However, not all Contractors Plant Policies are the same and there are some cheaper policies that will only provide cover whilst located on a specified secure site only. It is important that you are aware of the conditions contained within your policy and obtain the cover that meets your needs.

Annual policies can provide you with cover up to limits of £1,000,000 and beyond and continuing hire charges normally around £50,000 over a 3 month period. Our short term hired in plant insurance policy provides cover up to £100,000 any one claim and £5,000 for continuing hire charges.

There is also an excess that you must cover in the event of a claim. For an annual policy this excess would usually start at £500, however, on the insurance4plant.co.uk short term policy the excess depends on the value of plant and starts at £100. This would mean if you had a claim for £500 with an excess of £100 the insurers will pay the hire company £400 in compensation and you will need to pay the remaining amount. The hire company would normally take this in the form of a deposit.

No quote is ever the same in terms of pricing or cover. A premium is dependent on many factors, such as the following:

• What risks need to be covered by the policy.
• How many machines you are hiring and their maximum value.
• What you are using the machines for e.g. construction or landscaping.
• Site security and risk management in place to prevent a claim
• Estimated annual hired in plant fees
• If you have made any previous plant and machinery insurance claims.

In some cases, premiums can lower if you have anti-theft measures in place, or you are willing to take on a higher excess limit. However, it is important to choose hire equipment insurance policies that are compliant with your hire terms, as they may have specific conditions for hire.

Inform the Insurance4Plant team of your specific needs today and we can match you with a policy that keeps you financially secure and compliant with the hire contract.

There are many reasons why tradesmen and contractors hire heavy machinery instead of buying them outright. Of course, costs are a major factor in this. While it may seem more cost-effective to forgo protective coverage, there are risks you must consider.

Many hire companies will contractually make you responsible for loss or damage of the equipment and will require you to take out insurance as part of their hire contract. These hire contracts will hold you fully responsible for loss or damage to the machine during your hire term, regardless of whether it was your fault.

An estimated £400 million worth of plant equipment is stolen every year. In addition, whilst the cost of machines can vary the typical cost will range from £5,000 to £30,000 to replace one machine. Hire equipment insurance mitigates the financial impact caused by these circumstances.

To ensure you get the best value for money, we select from annual and short term hired in plant insurance policies. Whether you frequently rely on hiring plant machines or only need them once, we can provide advice on the best cover for you.

Yes. You can hire a single machine under a short term policy that provides cover for the hire period. If you foresee yourself hiring equipment frequently across the year, then it may be more suitable to take out an annual policy. This is a policy that lasts 12 months and covers most plant and machinery.

Read about our short-term and annual plant policies for more information. If you still need help, the Insurance4Plant team can help you decide which policy is better for your circumstances.

A short term plant and machinery insurance policy covers a large variety of machines leased for a single duration of time. For example, if a patio installer needs a mini digger for just 2 days. Annual insurance is a package we offer to tradesmen and contractors who are frequently hiring machines over the course of a year.

If clients often task the same patio installer to use a mini digger, it can be more cost-effective to take out an annual policy. With this policy, any heavy machinery you hire over the 12-month period is covered, so long as the policy’s conditions are met.

Click here to read more about our annual policies. If you still need more help, the Insurance4Plant team can help you decide which policy is better for your circumstances.

No. Whilst hire equipment insurance is a form of protection from your contractual liability, Public Liability policies do not cover plant hired by you.

By default, business public liability policies do not cover repair or damage costs, fines/penalties, or theft of equipment. Their primary purpose is to protect against lawsuits or claims made against you by clients or members of the public due to your negligence.

Some providers may allow a hired in plant section to be added to your contractors or tradesman’s liability policy. However, the limits on these policies may not be sufficient to meet your needs and there will likely be security conditions not contained on a standard contractor’s plant policy.

The Insurance4Plant team can find standalone plant and machinery insurance policies as well as policy add-ons that could be beneficial to you. Contact us to guide you through your options.

Our cover is primarily designed for tradesmen and contractors who must hire equipment for construction projects. There are some trades that are not appropriate for our insurance4plant.co.uk short term hire policy including:

a) reclamation, recycling, scrap, waste, skip hire or landfill
b) aggregate extraction, mining or quarrying
c) agriculture or farming
d) arboriculture, forestry, tree felling or lopping
e) cement works
f) demolition other than where it is incidental to other activities or trades
g) rail or tramway construction, maintenance or repair
h) ship building, maintenance or repair
i) timber or wood processing
j) tunnelling
k) work directly associated with any river, waterway, lake, reservoir or tidal shore.
l) working on or from barges or dredging
m) construction of seawalls, docks or marinas

In addition to the above, no risk may be written in the following areas:

• Businesses involving the processing of toxic waste materials other than where such
• processing is an incidental non-core activity, and importantly where this is compliant with all
• environmental regulations and legislation. (Toxic waste being any chemical or substance that
• presents a significant hazard to health or the environment as defined by local legislation and regulations)
• Manufacture of tobacco products
• Manufacture, sale or supply of arms and munitions
• Businesses where the sole activity is animal testing
• Manufacture, sale or supply of matches, fireworks and explosives

If equipment is used for these trades and requires cover then please contact one of the insurance4plant.co.uk team and we can arrange an annual policy to meet your needs.

On the insurance4plant short term insurance policy we can provide cover for a wide range of hired in equipment such as cherry pickers or scissor lifts, as well as some specialist construction items.

We are unable to provide cover for heavy machinery used for non-construction type roles. Examples include:

• All-terrain vehicles
• Processing machinery
• Site surveying equipment
• Unattended aerial vehicles (also known as drones)
• Road surfacing sprayers and paver
• Lorry mounted sweepers
• Drilling rigs
• Vehicle mounted concrete mixers
• Concrete pumps

Note: the definition of processing machinery is: plant used to perform mechanical or chemical operations on any material in order to change or preserve it including but not limited to bailers, compactors, crushers, harvesters, picking stations, shears, shredders, trommels and washing plant. Such operations shall include but not be limited to baling, compacting, crushing and washing, granulating, grinding, harvesting, pulverising, screening, shredding.

If you wish to obtain a quote in respect of an excluded item, then please contact the insurance4plant team and we shall be happy to provide you with a bespoke quotation.

The lower the risks involved with your hire, the more likely you are to have a cheaper premium. If you can provide details such as how the equipment will be used and how it will be secured when not in use, you may be able to obtain better value policies.

You can also lower premium costs if you are willing to apply for higher excess limits and lower maximum claim limits. Furthermore, an annual policy is often better value for money if you rent equipment frequently through the year.

Please be aware that your policy can be made void if we discover contradictions for any specified condition. For example, using a digger for demolition instead of landscaping as stated. It is best to answer application questions to the best of your knowledge when applying for an insurance policy. Our experienced team at Insurance4Plant.co.uk can help in this regard if you are ever unsure.

Settling a claim is a quick and straightforward process if you come prepared. Notify us and the hire firm as soon as possible after the incident happens.

You will need to provide policy details, including the policy number and details of the hire. Then provide us with a claim form and as much detail and evidence about the incident as possible.

If theft is involved, you will need to submit a police report and crime reference number as essential evidence. You may also need to provide evidence of the continuing hire charges being charged by the hire company following the loss of the equipment.