Hiring in plant and machinery can be the most cost-effective solution for many construction projects, as specialist machinery is often costly to buy and may not be required for long periods of time. As the hirer, in the event of loss or damage to plant which you have hired, you will be responsible for either the repair or replacements costs, as well as continuing hire charges until the either the repairs have been made or a replacement has been received.
When hiring in plant there will be hire conditions that must be adhered to, these detail the responsibilities of the hirer during the hire period. The most common conditions used by plant hire companies are the Construction and Plant Hire Association (CPA) and Hire Association Europe (HAE) conditions.
Hired in plant insurance will protect against unplanned costs relating to loss or damage of plant and machinery.
The term hired in plant refers to any items of hired equipment, machinery and tools. When you hire any machinery or equipment for your construction site, you are liable for any loss or damage that occurs.
Hired in plant insurance protects hired equipment and machinery on an indemnity basis (market value) and will generally cover items anywhere in the UK. Before releasing or delivering plant most hire companies will now require evidence of insurance.
The premium will depend on a number of risk factors, primarily the estimated fees paid for hiring equipment and the maximum value required for any one claim and details of any previous claims.
Other factors will be taken into account so speak to one of our experienced brokers who will consider the needs of your business and advise the best solution both in terms of cover and cost.
Short term plant hire insurance can provide the most convenient and cost-effective solution for one-off projects where hired machinery and equipment will only be required for a short amount of time. Short term plant insurance will provide cover for all plant within the agreed territorial limits (generally UK wide, but wider cover can be arranged) for the period of the hire and until returned to the hire company.
Construction companies and contractors working on various construction projects will invariably find an annual hired in plant insurance policy more appropriate. Those opting for an annual policy should ensure their policy has appropriate cover limits for all projects undertaken during the policy period.
If you are unsure on the amount of cover needed, or which type of policy would provide better value and cover for your project, speak to one of our specialist brokers who can advise.
If plant and machinery is already owned by the company, then own plant and machinery insurance is advised. Own plant and machinery insurance protects against loss or damage of any plant owned by a business within the territorial limits of policy (usually UK wide including transit).
Own plant and machinery insurance will cover items on an indemnity basis, with some policies providing new-for-old replacement on items under 24 months old. Extensions for loss of hire income are also available with several specialist insurers. Cover provided is generally on an ‘all risks’ basis with minimal exclusions and policy conditions applying.
When undertaking a construction project consideration should be given to several other insurances:
Most construction projects will require several types of liability insurance protection. These liabilities are often not covered by other policies (such as a Contractors’ All Risks policy) therefore a Combined Liability policy is recommended to insure Employers’, Public and Products Liability cover under a single policy.
For building contractors this cover is often referred to as Design and Construct Professional Indemnity (D&C). In simple terms the policy will cover the contractor against claims of negligence or breach of duties arising from their design responsibilities.
Cover will typically include:
A contractor may have either full or partial design responsibility in a contract, but as a minimum contractors are exposed to risks for any design alterations or tweaks during a project including the use of unsuitable materials.
We are an established provider of insurance to the Plant Hire sector.
Our recommended Plant ‘All Risks’ Insurance policy has the option to include the Hireshield Subrogation waiver, which means that a plant hire firm can waive their usual rights of recourse against the hirer and instead have the plant covered by their own policy. Some plant firms will increase their hire charges in instances where subrogation rights are waived.
Additional insurances will almost certainly be required and may include;
Our solutions are underwritten by a carefully selected panel of insurers, based on their financial strength, policy cover, and ability to provide a first-class service to clients.
To learn more about the products we can offer, visit our main construction page here.
Tysers offers a range of covers for construction companies and contractors. Head to our main page to find out more, or speak to one of our specialist construction brokers:
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