What’s the Difference Between Hired-in and Owned Plant Insurance?
As one of the UK’s leading independent plant insurance brokers, we get asked all manner of questions about plant insurance and plant hire insurance. If you’re searching for hired out plant insurance or hired in plant insurance, understanding the difference is essential. In this blog, we’ll answer that question once and for all and tell you the different policy elements that you can expect to find on an owned and hired-in plant insurance policy.
We hope this proves of use, but if you’d like more help or a plant insurance quote, please get in touch. You can call us at 0115 930 3030, start your plant insurance quote today, or request a callback and one of the team will get back to you as soon as possible.
What is Hired-In Plant Insurance?
Hired-In Plant Insurance, or Hired Plant Insurance as it’s also known, protects machinery, vehicles, and plant equipment you hire rather than own. Should hired plant be stolen, or accidentally damaged, Hired-In Plant Insurance can cover the costs of replacement, repair, and ongoing hire charges (subject to circumstances). This form of plant hire insurance is essential for businesses regularly using hired equipment to ensure full protection and to cover compensation costs that may arise under the hire agreement.
What can Hired Plant Insurance cover?
A Hired-In Insurance quote can be tailored to your needs and offer protection for:
-
- Hired-In Plant – for vehicles and equipment you hire in while undertaking work. Should the equipment be damaged, you can also get cover that will pay for ongoing hire fees while it’s out of action.
- Hired Plant on an all-risk basis – which can also protect you against fire, theft, malicious and accidental damage, as well as severe weather events common at most construction sites.
- Road Risks Only – cover for plant which is road registered.
While plant hire companies will often offer you Plant Insurance cover, including plant hire insurance, it’s worth taking this out separately through an independent insurance provider or plant insurance specialist as:
-
- It may not offer you the protection you need – many won’t include accidental damage insurance, for example
- It will most likely be a ‘non-advised sale’, so they won’t be able to give any professional advice on the policy/cover you require
- It may work out to be more expensive
- It may not cover continuing hire charges or legal fees
- Make sure you take care in reading the terms and conditions of your hire agreement
What is Owned Plant Insurance?
Owned plant insurance, on the other hand, provides protection for equipment that you or your business owns. It, too, can provide cover in case your equipment is stolen, or accidentally damaged, but as you own the plant, there’s no provision for things like hire charges as they won’t apply.
What can be covered by a Plant Insurance policy?
Whether you own or hire in your plant, Plant Insurance through Jensten Insurance Brokers can cover a wide range of equipment types, including:
- Construction plant – diggers, earth movers, mobile cranes, generators, dump trucks, etc.
- Agricultural vehicles – such as tractors, sprayers and trailers
- Lifting equipment – cranes, forklift trucks, mobile cranes, cherry pickers, mobile scissor lifts, and high loaders
- Road maintenance vehicles – road sweepers, self-propelled tar layers, and steam rollers
- Attachments, welfare units, on-site cabins, and other site buildings
- Trailers
- Construction plant, tools, and equipment – with the option to include workers’ personal tools and other possessions while on site.
- Off-site storage
- Immobilised equipment
A couple of things to consider when choosing Plant Insurance…
As with any policy, it’s important to check the details wording of your Hired-In or Owned Plant Insurance quote. Specific things to look out for include:
- Exclusions – the list of exclusions can be lengthy and often include this like:
-
- Wear and tear
- Damage caused by insects or vermin – a potential problem for those with agricultural vehicles
- Corrosion
- Damage arising from fraudulent or dishonest actions
- Mechanical or electrical breakdown
- Component self-ignition
- Equipment types – some insurance providers may not be willing to insure certain types of equipment for use on a construction site, be it hired-in or owned plant.
- That you have sufficient plant cover for your needs – many plant users – especially construction firms – will have a mixture of owned and hired plant on site. Some insurers will not cover hired-in equipment on plant policy but will require a specific hired-in plant insurance policy to be in place.
