If you are planning to hire heavy construction plant equipment, it is important that you ensure you have the proper insurance in place. If the hired equipment is stolen or damaged while under your custodianship, it is likely you will be financially liable. For this reason, it is vital you have the correct insurance policy in place to protect yourself. Below is a brief guide to plant hire insurance.
Get a Quote
Because plant hire is such a specialised industry, when looking for an insurance policy, it is best to employ a plant hire insurance broker to act on your behalf. You should ensure you have the correct valuation of equipment you wish to hire, so you can ensure it doesn't exceed the value of your policy. Other factors which can affect your insurance premium include any previous claims you have made and the type of work you wish to carry out.
The Insurance Broker
There are a wide range of companies which offer specialist support to the construction industry. For example, an insurance broker will be able to advise you if it is better to cover your hired plant using your existing business insurance policy, or if it it would be better to take a completely new policy to cover the plant. If the plant hire company offers insurance as part of the quote, your broker will be able to assess to what extent this protects you.
Understanding Your Policy
When you are presented with an insurance quote, you should carefully examine the terms and conditions, taking note of the following points:
- The value of the excess you will be required to pay in the event of a claim
- Any special conditions or exclusions attached to the policy
- The overall value of the policy
Plant Hire Theft
The theft of equipment and plant is a growing problem within the Australian construction industry. There is a booming trade in black market machines such as tractors, forklifts, platforms and excavators. It is vital you keep your site secure when it is not in use, and that your employees take reasonable steps to secure and protect any hired plant and equipment. If you are a victim of crime and it is discovered that you were somehow negligent, this could invalidate or reduce any insurance pay out.
When hiring plant, you should speak to both a specialist insurance broker and plant and excavator hire companies for professional advice.