Dry Hire Insurance

Dry Hire Insurance

Why dry hire insurance cover matters

Dry hire insurance is immensely important for individuals and businesses that rent equipment, as they are solely responsible for the equipment. In a dry hire arrangement, the hire company hands over the equipment to the customer without an operator or a dedicated employee to oversee the use. Having dry hire insurance provides peace of mind to hirers ensuring that they can hire out their equipment without worrying about financial losses in the event of unforeseen events, such as theft, damage, and accidents. It is crucial for customers to invest in dry hire insurance to mitigate risks and protect their financial interests.

Dry hire can expose your business to potential risks. It is important to note that allowing individuals of the public to operate equipment may increase the likelihood of accidents and subsequent public liability insurance claims. In addition, if your clients are unfamiliar with the equipment they are renting, they may misuse it, causing damage or injury to themselves or others. As a business owner, it is important to ensure that you have an adequate Dry Hire Insurance policy that includes Public Liability Insurance to protect you.

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Do I need Public Liability Insurance for my Dry Hire Business?

Public Liability Insurance covers personal injury claims to a third party - for example if a third party is unjured whilst using your equipment. Public Liability Insurance also can cover you for damages that are caused to third party property whilst your customer is using your equipment.

Personal Injury

Property Damage

Vibration, Removal, Weakening of Supports

Property in Physical and Legal Control

Comprehensive Insurance for your equipment

Insurance for your plant & equipment is a crucial to protect you from the costs associated for own damages.


Windscreen Damage



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.

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Furthermore, Morgan Insurance Brokers has a partnership with Sprintlaw, an innovative online legal firm, which allows us to offer you even more benefits. By mentioning Morgan Insurance, you will receive a generous 10% discount on your dry hire agreement. We understand the importance of providing our clients with comprehensive services, and this collaboration ensures that you not only receive top-notch insurance coverage but also access to expert legal advice.

Sprintlaw is a trusted name in the legal industry, known for their expertise in various areas of law, including contract drafting and review. Their team of experienced lawyers are dedicated to providing efficient and cost-effective legal solutions tailored to your specific needs.

To take advantage of this exclusive offer, simply reach out to Sprintlaw via email at partnerships@sprintlaw.com.au or going directly to their website https://sprintlaw.com.au/construction/dry-hire-agreement/

Their friendly and knowledgeable staff will be more than happy to assist you with any inquiries or legal concerns you may have.

At Morgan Insurance, we strive to go above and beyond for our clients, and our collaboration with Sprintlaw is just one example of our commitment to providing exceptional service. We believe that by offering this additional benefit, we can further enhance your experience with us and ensure that you have all the resources necessary to protect your business and make informed decisions.

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.