Is hired in plant insurance worth it? Well, you wouldn’t insure a car every time you drive it – why do it with plant hire?
When hiring heavy machinery and plant like cherry pickers, forklifts, and telehandlers, you must ensure that the necessary precautions are in place to protect yourself against damages. Whether it’s broken parts, smashed windows, scratches, or even theft, you’ll be liable for cost of repair if at fault.
There are two main ways to cover yourself and your business when hiring plant and equipment – arranging yearly Hired in Plant insurance or purchasing damage waivers per hire.
There are benefits to both, however when working with hired plant regularly, the idea of purchasing damage waivers per hire is a costly one. But many businesses will ask themselves – is hired in plant insurance worth it?
Damage waivers are additional charges, usually around 10% of the hire cost, added by your supplier to cover for damage to the equipment. However, if you have a pre-existing insurance policy, there’s no need to purchase these.
We’ve compiled a list of benefits to ensuring that your business has a yearly cover in place when hiring plant. It may seem like a costly investment up front, but when you break it down, you’ll benefit from not only saving money, but being safe in the knowledge that you have an extensive cover for many areas, not just damage.
Cost savings:
Many hire companies add a charge of over 10% for a damage waiver. If you regularly hire plant and equipment, an annual policy can lead to significant cost savings. The policy cost
is determined by factors such as the equipment type, estimated annual hire fees, the maximum market value of a single item, and the maximum value of items insured at a single location.
Extensive Coverage:
This policy covers material loss or damage, including instances where the item is in use, and it also includes theft. This bridges the gap in hire agreements where damage waivers provide limited coverage, leaving renters exposed to uninsured losses.
Legal Expenses:
In case of a legal dispute between the rental company and the renter, legal costs can be covered up to a specified amount, often up to £50,000.
On-going hire charge:
Typically, in the event of loss or damage, renters are required to continue paying hire costs for a certain period or until the item is repaired and ready for hire again. This policy provides coverage for the costs you are held responsible for, following the loss or damage of a hire item, often up to £50,000, subject to a waiting period (commonly 7 to 14 days).
If you’re thinking to yourself, is hired in plant insurance worth it? – Consider all the factors involved before purchasing costly damage waivers from your plant supplier each time you hire equipment.
Want more information on how hired in plant insurance can save your business money? Get in touch with our team of expert account managers today.