When working in plant, you will usually need to hire tools and equipment. These may include forklifts, diggers, and other similar items. To protect yourself from liability in case of damage, loss, or plant theft, you should take up Hired In Plant Insurance. In this guide, we will cover this form of insurance in more detail.
What Does Hired in Plant Mean?
Hired in plant simply refers to the items or equipment that is leased for short periods. These items are meant to be used as per the terms of a contract, so you will be liable for any damages outlined in the contract terms. Plant hire is seen as a cost-effective way for companies to get the most out of the machinery, especially since they will not need to cover the expensive overheads of buying new machines. Also, maintenance costs are eliminated with plant hire. This system also ensures that a company always has access to up to date technology for the tasks at hand.
While Hired In Plant Insurance offers lots of benefits, you may suffer major losses if the tools or equipment are damaged, stolen, or lost. For this reason, it is essential to take out Hired In Plant Insurance when you lease tools and equipment. You should note that this form of insurance can be granted as an extension to existing insurance products. For example, if you already have a Tradesman Insurance product, you can get an extension for the Hired In Plant Insurance cover.
Here are some areas that are covered under Hired In Plant Insurance:
- Theft of plant machinery from your property or site
- Water damage to hired plant machinery, usually resulting from floods
- Injury to employees and other parties on the site
- Damage to the property of the client or other parties
This plan can also come with Employers Liability Insurance, which ensures that your staff are covered if they are injured or fall ill whilst under your watch. It is important to remember that Employers Liability Insurance is legally required for all companies with employees.
The cost of Hired In Plant Insurance will vary according to your bespoke needs.
What Is Construction Plant Insurance?
Construction Plant Insurance is similar to Hired In Plant Insurance. However, with Construction Plant Insurance, the provider will be liable for the losses incurred from the damage or loss of your own or hired equipment. Construction Plant Insurance will also cover the continuing costs of hiring the damaged or lost tools since you will not be able to use them. It is worth noting that damage caused by normal wear and tear will not be covered under this insurance plan. These packages usually have very high limits, and you can even get higher limits in tailored plans.
Does Public Liability Insurance Cover Hired-In Plant?
Public liability Insurance is essential for roofers and other professionals in the construction industry. This cover is meant to protect you from any liability in the construction process, such as theft, loss, or damage to tools, machinery and other equipment.
Other areas that will be covered by Public Liability Insurance include:
- Injuries caused to third parties by your employees
- The injury or sickness of your employees
- Delays or disruptions to the construction
- Any legal expenses arising from the construction process
What Is Own Plant Cover?
Own Plant Covers are quite rare as most companies prefer to offer insurance for both own and hired-in tools. In this case, the insurance company will be liable for the damage, theft, and loss of your own working equipment. While Hired In Plant Insurance may be required by the leasing company, you will be free to work with your own tools without own plant cover. However, you should remember that any damage or loss of the equipment can lead to major losses for your company. Replacing or repairing the tools will take a lot of money, and you may also have to stop the project for some time. This delay will not only be wasteful for your company; it can also discourage potential clients from enlisting your services.
When you take on a construction project, you will usually need to hire some equipment from a third party. When renting out these items, you will have to sign a contract, and this will specify that you must repair or replace any damaged tools.
To protect yourself from this liability, it is always recommended you take out Hired In Plant Insurance. This insurance plan will also cover any renting costs incurred if items are damaged or stolen. With this insurance plan, your employees may also be covered in case they get injured or sick when on-site.