INSURANCE GUIDE
Plant and Machinery Insurance UK
Cover for owned and hired-in construction plant, agricultural machinery and industrial equipment against damage, theft and breakdown.
TL;DR
- Plant insurance covers owned machinery against fire, theft, accidental damage and sometimes breakdown.
- Hired-in plant insurance covers your liability for equipment rented from a hire company during the hire period.
- Most standard construction public liability policies do not cover plant and machinery as property - a separate plant policy is needed.
- Plant operated on public roads needs road traffic act cover in addition to plant insurance.
What Plant and Machinery Insurance Covers
Plant and machinery insurance covers the physical loss and damage to owned or leased construction, agricultural, or industrial equipment. Standard covers include: fire and explosion; theft; accidental damage during operation; flood damage; vandalism; and malicious damage. High-value plant items - excavators, cranes, telehandlers, compressors - represent significant capital expenditure and replacing or repairing them without insurance creates major financial exposure for any contractor or plant operator.
Hired-In Plant Insurance
When you hire construction plant from a hire company, the hire agreement makes you responsible for loss or damage to the equipment during the hire period. This liability is not covered by your own-plant policy (which covers equipment you own) or your public liability (which covers third-party claims). Hired-in plant insurance specifically covers your liability under hire agreements for equipment you are responsible for but do not own.
Plant Operated on Public Roads
Plant driven or transported on public roads needs motor insurance under the Road Traffic Act 1988. Compact plant - telehandlers, dumpers, compressors - used on site does not need motor insurance for site-only operation, but the moment it is driven on a public road it does. Confirm with your insurer whether road risk is included in your plant policy or whether you need a separate motor trade or plant operators road risk endorsement.
Operators Liability
Operators liability covers claims by third parties injured or whose property is damaged by the operation of your plant. This is distinct from the public liability section of a contractor's policy in that it specifically addresses plant operation risks. If your digger strikes an underground service or your crane drops a load, operators liability within a plant policy covers the claim.
Plant Breakdown and Loss of Revenue
Mechanical breakdown cover extends plant insurance to cover internal mechanical failure - not just external damage. Loss of revenue or standing time cover compensates for income lost while plant is being repaired after an insured event. For contractors whose operations depend on specific plant items, both covers reduce the financial impact of extended equipment downtime.
Disclaimer
This guide is for general information only and does not constitute financial or insurance advice. Kaeltripton.com is not regulated by the FCA. Always read policy documents in full before purchasing cover.
Frequently Asked Questions
Does public liability insurance cover plant and machinery?
Public liability covers claims made by third parties for injury or property damage caused by your operations. It does not cover damage to or theft of your own plant and machinery. A separate plant insurance policy is needed to cover the equipment itself as a physical asset.
Do I need insurance for plant stored on site overnight?
Yes. Plant left on site overnight is at risk of theft and vandalism. Your plant policy should cover equipment while it is stored on a construction site. Check whether the policy has any overnight security conditions - some insurers require equipment to be immobilised, secured with chains, or housed in locked site containers overnight to maintain cover.
Is there a minimum hire value for hired-in plant insurance?
No minimum applies - hired-in plant insurance can be arranged for any value of hired equipment. However, the premium is typically based on the total annual hire spend or the value of equipment on hire at any one time. Contractors with high volumes of hired plant may find it more cost-effective to arrange a combined own and hired-in plant policy rather than separate covers.
