Dry Hire Insurance and how to ensure you're covered

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Machinery and plant operators are vulnerable to substantial public liability risks - regardless of if it’s the dry hirer operating the equipment. Let’s take a look at what dry hire insurance covers and what the implications could be if you aren’t adequately protected.

Is your dry hire company protected?

Being a dry hiring company doesn’t mean all liability falls to the party who is doing the hiring from you. Because even though you’re not providing an operator a dry hire arrangement doesn’t protect your machinery from all risks that could happen.

Some of the risks that come with dry hire include theft, fire and accidental or malicious damage. All of which can have a significant impact on your business.

By having suitable insurance for your needs, you can help to protect your business and be shielded from some of the financial impacts of these risks. However, dry hire insurance policies can differ greatly between insures so it’s important that you focus on more than just price when exploring your options.

If you are properly insured, you should be able to claim for:

Damage
Theft
Fire
Breakdowns
Accidents
Legal fees
Compensation
Income protection

But it’s important to really understand what the limitations are for you to be covered, and if there are any exclusions. This differs depending on the insurance company you have your policy with so these should be looked out for before you commit to choosing cover for your business.

It can be tricky at times to ensure you are meeting all the requirements so be sure to arrange a chat with our experienced insurance broker if you’d like some guidance on what is best for your business.

Importance of public liability cover for a dry hirer

In a dry hire business, it’s likely you and your hirers will have customers and employees. Anything from machinery to tools could potentially injure somebody.

Even with health and safety measures in place, the risk is still there.

By having a public liability policy in place, you’ll be covered for incurred medical as well as legal and compensation fees. Most businesses require public liability insurance to cover their legal responsibility for the harm they may cause to a third party, or if they are found legally accountable for injuring a third-party.

Ensure the correct dry hire agreement/damage waivers are in place

You want to have the peace of mind that both your business and your customers who hire your equipment will be insured. That’s why it’s essential that each customer should sign and receive a copy of the waiver.

The waiver should clearly outline that the customer is financially responsible for any loss or damage to the dry hire tools and equipment. This is an important point to clarify, as you don’t want to jeopardise an insurance payout because the party’s to the agreement were not aware of what was required.

Limitations regarding cover

Your level of cover and what is included and excluded will depend on which company you are insured with. This is something that you should discuss with us or your insurer.

There are often limitations for when your equipment is covered. Here are a few scenarios where you might find yourself in a situation where dry hire insurance won’t fully protect you.

Your machinery may be covered for theft while out on dry hire, but not if that theft occurs by the dry hirer themselves.
Some companies offer dry hire cover but only if they have received and reviewed the dry hire agreement/damage waiver.
If you don’t take reasonable steps to ensure the hirers or operator is authorised under relevant legislation to operate the machinery.
If you haven’t provided the hirer with adequate instructions to operate the machinery.

Here at CGIB, we can assist your business in exploring your dry hire insurance options Ensuring you are covered for the hire of plant, machinery and equipment.

If you are unsure whether you have the right policy for your business get in touch with us and we’d be happy to help. CGIB offers specialist policies for dry hirers.

The information provided in this article is general advice only. General Advice is advice that has been prepared without considering your current objective's, financial situation or needs. Therefore, before acting on this advice, you should consider the appropriateness of the advice having regard to your current objective's, financial situation or needs. Read our complete general advice warning.