Plant insurance

Millions of pounds of plant and equipment is stolen from construction sites each year, and vandalism is also a significant problem. When equipment is kept outside damage from the elements is also a significant risk, and given construction sites are by their nature potentially hazardous environments, there is always a chance of plant and machinery suffering accidental damage.

Furthermore, if you have leased plant equipment, you have an agreement with the hiring company which makes you responsible for the plant while it is in your control. If it suffers theft or damage, you would be legally liable to replace the plant, which you may not have the money to do. On top of this, you have a financial responsibility to continue paying any leasing charges for hired-in equipment even while it is damaged or stolen, until is repaired or replaced.

Therefore, whether have your own plant or have hired equipment, plant insurance is crucial to protect you and your business protects you should the plant be stolen or damaged.

Whether you are using your own plant or have hired in equipment, plant insurance provides peace of mind and protection against the risk of the plant being stolen or damaged. Remember when you lease a piece of plant, you enter into a contract with the hiring company, making you responsible for the plant while in your control. If it suffers theft or damage, you would be legally liable to replace the plant creating and unforeseen financial expense.

Plant insurance can cover you against malicious damage, theft, fire, storm, flood and water damage for both your own or hired-in equipment. This includes both while the equipment is at the worksite, and transfer of equipment to and from the worksite (within the distances stated in your policy).

Levels of cover will vary according to your policy and insurer but standard cover is available up to at least £100,000. Higher limits are also available in tailored, bespoke packages.

Should your hired-in plant be damaged or stolen, you will need to pay continuing hiring charges until the equipment is replaced or repaired. Plant equipment is designed to also cover this expense.

Hired-in plant refers to any item of plant or equipment that have temporarily leased or hired under contract. In these circumstances it is normal for you to become liable for loss of damage to the plant by way pf the Contract hire Conditions.

Annual Hired-in charges are a rating item and a differential indicator of your risk exposure. They are the total of all individual hiring costs that you incur over a year which are paid to all hiring and leasing companies you use. This annual hire-in charge will have an effect on your premium, depending on how frequently you hire in plant.

There are a wide range of plant insurance policies available, as part of a single package, separately for a set of equipment, or even for just a single item. While it is therefore difficult to give an average cost, there are ways to keep your premiums lower, including:

• Extra security for your equipment, such as CCTV

• Keeping it under cover to protect it from the elements

If you hire equipment frequently, the most cost-effective method is usually to take out an annual plant insurance policy. This will cover any equipment you hire during that time against damage and theft and will invariably be cheaper than purchasing a separate policy each time you need to rent an item of plant.

Note also that plant leasing firms will offer insurance to cover their equipment if it is damaged or stolen. However, this is usually more restrictive cover than a plant insurance policy (often excluding accidental damage cover, for example), so could turn out to be far more expensive in the long run.

We offer standard cover against malicious damage, fire and theft for your own or hired-in plant from £25,000 We can extend this limit with a tailored policy if you require a much higher values up to £100,000 and more, from our panel of insurers.

As noted above, while you may be able to take out a hired-in plant insurance policy direct from the leaser, by insuring the machinery yourself, you will be able to get more extensive cover to suit the needs of your business.

Some plant insurance policies may carry an excess that you need to contribute towards each claim. You can reduce your premium by agreeing to a higher excess, but note you would need to pay a larger sum in the event of a claim.

As with all covers, plant insurance policies vary by insurer and customer, so you should always check your policy documents carefully for a comprehensive list of any exclusions.

To help you spread the cost of your premiums, we offer a quick and easy direct debit scheme for spreading payment over ten months. Please visit our dedicated Direct Debit page to find out more.

If you would like to know more about our monthly payment option, please visit our dedicated Direct Debit page.

We normally only arrange your plant cover as part of your public liability insurance. Speak to our advisors to discuss your specific plant insurance requirements.