It is imperative for hire companies to engage an insurance broker who is a specialist, well-versed in your industry, in order to address your needs. Drawing on Insurance4Plant’s 25+ years of experience dealing with plant hire companies, we’ve learned that each hire business in this sector is unique.
Two companies in the same town, renting similar equipment, can operate in markedly different ways. One may offer on-site repairs, another may be loaned equipment by a manufacturer for demonstrational purposes. The variability is extensive, and such variations may not be covered by a typical plant hire company insurance policy.
Insurance products themselves also differ among providers. Contractor plant insurance is never the same for each contractor, and that is also true for hiring companies. They may all have the same label of “hire company insurance”, but the content and terms will vary significantly.
Therefore, the insurance broker you choose must comprehend your company’s specific needs and services. Arranging tailored coverage for your firm is much easier when you have someone who knows the difference between contractor’s plant insurance and your company’s plant insurance.
The following is a list of terms Insurance4Plant can help you acquire, and the contractual pitfalls your company could face if you do not use a specialist.
Your cover can be provided on an “indemnity” basis, or “reinstatement” basis. Indemnity cover will only provide market value at the time of the loss, with an allowance for wear and tear. Reinstatement cover will provide “new for old cover” for up to 24 months and then current market value after that.
Unsure which is best for your business? This is where a specialist insurance broker can give you an informed opinion to help you make the right choice.
If you are cross-hiring your machinery, it is essential that continuing hire charges cover is included to meet the needs of the hire conditions used by hirers. Whilst the majority of insurers will include continuing hire charges, some do not. It is also important to ensure that the sum insured is adequate to cover your possible exposure. A specialist plant insurance broker can help you with both of these matters.
This is perhaps the biggest pitfall companies like yours face when you do not hire a specialist. Most policies include a condition that states the security checks you have to undertake before leasing your plant machinery. There are certain documents you need to retain, and even limitations on where equipment can be delivered.
The majority of plant hire companies we talk with are not aware that these conditions exist within their policy. On some occasions when this condition is pointed out, we were advised that they were not able to meet these terms.
But this is not a problem for Insurance4Plant. In this case, our specialist insurance brokers can recommend policies that tailor this condition to meet your hire company insurance needs. Better yet, we can place cover where this condition is not included at all.
As theft is on the rise, more and more security conditions have been creeping into policies over the years. In our experience, these are more often not workable or cause additional cost to your business for very little benefit.
An example of this is where the insurer requires the plant machinery to be held within a “secure compound” overnight. With what defines secure often being vague or unattainable. It is essential that you understand the conditions within your policy and where they can not be met, talk with our specialists to arrange cover that doesn’t have these conditions.
Cover extensions are extremely useful to include on your policy when your company could benefit from their protections. Examples of extensions we can source are “Third-Party Machinery Movement Cover”, “Employees Tools Cover”, “Demonstration Equipment Cover” or “Subrogation Waivers”.
Not only can a seasoned insurance broker find extensions like these, but can also provide advice on cost-saving measures and risk mitigation strategies. Our broker’s ability to negotiate with insurers ensures you obtain competitive premiums with the extras you need.
The real value of a broker’s service becomes evident when handling claims. In the unfortunate event of a claim, a broker familiar with your business can expedite the process, advising on the right evidence to submit to minimise the risk of your claim being declined.
Building a lasting relationship with an insurance broker who comprehends your plant hire business is an investment in effective risk management, optimised coverage, and potentially cost-efficient solutions. This partnership extends beyond transactions; it becomes an extension of your risk management team, contributing to well-informed decisions as your business evolves.
In summary, partnering with an insurance broker who understands the specifics of the plant hire industry is not just about obtaining coverage; it’s about securing a tailored, efficient, and evolving risk management strategy for the sustained success of your business.
A Manchester-based rental company engaged our services. Following a thorough assessment of their insurance coverage, we not only reduced their insurance costs by 23% but also enhanced their coverage amounts. Unlike their previous broker, who neglected to explore different policy options, we actively engaged with various markets, even negotiating favourable terms and preventing unwarranted rate hikes.
A Milton Keynes-based hire company sought our assistance. Upon visiting the client, we conducted a comprehensive evaluation of their insured amounts, successfully raising their plant machinery value from £600,000 to £950,000. In contrast, their previous broker failed to conduct such a review and merely obtained the updated sums insured over a phone call with the client. This broker, despite claiming to perform a thorough market assessment in their renewal report, only sought a quotation from the holding insurer, resulting in a quoted premium of £23,000.
In our approach, we executed a thorough market analysis and provided a competitive quote of £9,750, inclusive of tax. This not only led to significant premium savings but also involved an increase in the insured amounts. Our commitment to a full market exercise ensured that the coverage was placed with reputable insurers, delivering comprehensive protection for the client.