Dry Hire Insurance
Dry Hire Insurance
What is Dry Hire Insurance?
Dry hire insurance is essential for businesses and individuals who rent out equipment without providing an operator. In a dry hire arrangement, the equipment is handed over to the customer for use, and the hire company has no control over how it’s operated. This means the hirer takes on full responsibility for the equipment during the hire period.
Having dry hire insurance offers vital protection and peace of mind ensuring that if something goes wrong, such as theft, accidental damage, or equipment loss, you’re not left with a hefty financial burden. It allows equipment owners to confidently rent out their assets, knowing they’re covered against unforeseen events.
However, dry hire also carries higher risks. Allowing members of the public to operate machinery or equipment increases the chance of accidents and potential public liability claims. Misuse by inexperienced clients can result in property damage, injury, or costly downtime. That’s why it’s crucial for business owners to have a comprehensive Dry Hire Insurance policy, ideally one that includes Public Liability Insurance, to safeguard both their equipment and their business from these risks.
Do I need Public Liability Insurance for my Dry Hire Business?
Public Liability Insurance protects your business if a third party suffers injury or property damage as a result of your operations or equipment. For example, if a customer or member of the public is injured while using your hired equipment, Public Liability Insurance can cover the associated personal injury claim. It can also provide financial protection for accidental damage to third-party property that occurs while your customer is operating or handling your equipment.
A customer hires a mini excavator and injures their foot while operating it incorrectly resulting in a personal injury claim against the dry hire business.
A customer accidentally reverses a hired skid steer into a nearby vehicle, damaging the car’s panels and bumper resulting in a third-party property damage claim.
During excavation, a hired bobcat causes ground vibration that cracks a neighbouring wall leading to a third-party property damage claim for weakening of supports.
A hired in generator gets accidentally dropped while unloading, damaging the unit resulting in a claim for property in a physical and legal control claim.
Comprehensive Insurance for your equipment
Insurance for your plant & equipment is a crucial to protect you from the costs associated for own damages.
How Morgan Insurance Brokers can help
Due to the complex nature of Dry Hire Agreements and Dry Hire Insurance, it’s important that you have a qualified Insurance Broker guide you on the terms and conditions of your insurance. For example, a standard dry hire public liability insurance would pursue your client for damages. Does this align with your dry hire contract?
It’s important that your insurance and your hire contract are carefully reviewed to understand what is and is not covered.
We can also provide comprehensive plant & equipment policies and motor vehicle insurance as well. We provide a holistic approach to your business needs.
Contact us today to discuss this further.
Your Frequent Dry Hire Questions Answered
Having a dry hire agreement is a crucial step to protect your machinery from loss or damage from your customers whilst out on hire. Your insurance is also void without a signed and completed dry hire agreement.
Our suggestion is that you contact a legal firm to assist you in creating a tailored dry hire agreement for your business.
In a dry hire agreement, you typically find details such as the
• Hire period/dates,
• Hire fees,
• Terms of payment
• Responsibilities of both the hiring party and the owner
• Insurance details
Depending on the items that are for hire, these can vary greatly and we always suggest contacting a solicitor for legal advice. As tempting as it may be to download free dry hire agreement templates online, this could expose you and your business.
An important consideration under your insurance that will need to be expressed clearly in your drafted dry hire agreement is that your insurance company will seek recourse/subrogation from your customers/hirers of your equipment for any damage done to your equipment whilst out on hire in which you make an insurance claim for. In short, subrogation is your insurers right to recover any amounts they’ve paid out for a claim from a third party who may be responsible for causing the loss or damage.
If you wish to have this clause removed where the insurance company does not follow through with collection action against your clients, you can opt to have them insured under your policy in which is called a “damage waiver extension”. This is usually more costly for you, and also could mean rising insurance premiums each year for you as it allows your insurer to recoup the funds.
- Ensure that your hirer is qualified to use the equipment
- Ensure that an overview of the safety features and handling of the equipment is done prior to
- A dry hire agreement must be in forceHave your dry hire agreement drafted or reviewed by a solicitor
- Public Liability Insurance for both you and your hirer is crucial to protect both parties
- Making sure that your insurance policy does not have any sneaky clauses that could result in any unexpected financial losses to your business
Monthly Instalments is available for your dry hire equipment insurance
Flood is covered standardly. However, if you’re in a flood prone area, additional excesses could be imposed.
Yes, wet hire can be added to your cover.
Yes, own use of equipment can be covered.
It is important to note all of your acccessories and attachments on your insurance policy to ensure that in the event of damage, that they are covered. Even if they are inclued in the total purchase amount when you bought your equipment, it’s still best practice to itemise these.
If you have a registered trailer that you are using as part of your business, it is important to note that most motor vehicle insurance policies do not extend to cover liability from damages caused by the trailer. Meaning that because this item is road registered, it will need to be treated as it’s own individual item and will need to be insured. This can be included on your dry hire insurance policy.
