What is hired in-plant insurance and how to get it
Find out everything you need to know about hired-in plant insurance in the UK, including key cover details, typical costs, top providers, and how to choose the right policy for your business.
Renting machinery like diggers, dumpers, scaffolding, or generators keeps your business agile and protects your cash flow. However, if that rented machinery gets damaged, stolen, or destroyed while under your control, the hire company will hold you legally and financially responsible.
That’s where hired-in plant insurance steps in. It acts as a financial safety net for tradespeople, contractors, and small businesses, shielding you from expensive repair costs, replacement fees, and ongoing hire charges while equipment is out of action.
What is hired-in plant insurance?
It’s a commercial insurance policy that covers equipment, machinery, and tools that you rent for business use. In the UK alone, the plant-hire industry contributes £14 billion to the economy and over 191,500 jobs – so it’s a sector that’s probably bigger than most people realise.
Unlike “owned” plant insurance (which protects equipment you own), hired-in cover protects items you lease temporarily. Under most standard UK hire agreements, you are contractually responsible for the equipment from the moment it leaves the hire depot until it is safely returned.
Why use it?
Here are some of the key reasons why you might want to consider hired-in plant insurance:
Financial protection. It covers the total cost to repair or replace stolen or damaged rented machinery.
Contractual compliance. Satisfies hire company terms requiring mandatory insurance before equipment leaves the yard.
Continuing hire charge protection. Covers the daily rental fees you must keep paying the hire firm while the lost or damaged machine is being replaced or repaired.
Who needs it?
Any business or individual renting plant or machinery in the UK needs hired-in plant insurance to avoid paying out-of-pocket for damages or theft:
Construction contractors and builders. Renting excavators, telehandlers, or scaffolding for building projects.
Landscapers and grounds maintenance teams. Hiring mini-diggers, chippers, or turf cutters.
Civil engineers and utility workers. Leasing heavy compressors, trenchers, or generators.
Event organisers. Hiring mobile staging, sound rigs, or temporary lighting towers.
Sole traders and limited companies. Any self-employed tradesperson taking on short-term machinery rentals to complete a contract.
What does hired-in plant insurance cover?
A standard hired-in plant policy covers accidental loss, damage, or theft of rented machinery while on site, in transit, or stored securely overnight.
Here’s an overview of the key coverage most policies provide along with an example:
Coverage feature
What it protects
Common example
Accidental damage
Physical damage caused by accidents on site.
An excavator boom strikes a wall during demolition.
Theft and vandalism
Loss or deliberate damage by third parties.
A mini-digger is stolen overnight from a secured site.
Fire and flood
Damage caused by environmental hazards or fires.
A generator catches fire or is damaged in a site flood.
Transit cover
Damage occurring during loading, unloading, or transit.
Equipment falls off a trailer while being moved to site.
Continuing hire charges
Rental charges owed while equipment is repaired
Paying the hire firm daily fees for 2 weeks after theft.
Who offers hired-in plant insurance?
Several major commercial insurers and financial platforms provide hired-in plant insurance in the UK. Comparing providers helps ensure you get flexible terms that suit your project frequency.
Tide: With Tide, you can get a quote in minutes and up to £50,000 of cover for up to 90 days. Cover starts from just £16 per month and can provide protection for equipment liability, ongoing hire charges, theft protection, and recovery costs.
Simply Business: Can help compare tailored quotes from multiple UK underwriters to help tradespeople find short-term or annual hired-in plant cover with over £57 million in claims paid out in 2025.
Hiscox: A specialist insurer offering tailored plant and tool policies designed for small-to-medium contractors and specialised trades.
AXA: Provides flexible plant and machinery policies for construction firms.
Aviva: Delivers comprehensive commercial plant coverage options ideal for larger fleets and heavy industrial machinery.
Allianz: Offers dedicated specialist plant and machinery policies suited for complex construction and civil engineering projects.
How much does it cost?
The cost of hired-in plant insurance varies based on several factors, but annual premiums typically start around £150 to £300 per year for small contractors, while short-term policy rates depend directly on the total value of the gear hired.
Key factors influencing the price of hired-in plant insurance
Maximum limit of indemnity. The total monetary value of plant hired at any one time (e.g., £20,000 versus £100,000).
Annual hire spend. How much money your business spends on equipment rentals over 12 months.
Type of machinery. The cost of heavy machinery like cranes or large excavators means they carry higher risk premiums than items such as small generators or power tools.
Site security measures. Secure storage, GPS trackers, and immobilisers can reduce premium costs with some insurers.
Policy excess. Selecting a higher voluntary excess lowers your overall premium cost.
How to choose the right policy
To select the best hired-in plant insurance policy for your business, evaluate your operational needs using this step-by-step checklist:
Calculate maximum plant values. Determine the highest combined value of hired gear you will have on any single site at one time.
Check rental contract terms. Ensure your policy limit covers both the replacement cost of the machine and continuing hire charges required by Construction Plant-hire Association (CPA) contracts.
Choose between short-term and annual cover. If you hire gear more than 3 or 4 times a year, an annual policy is almost always more cost-effective than buying single-use policies.
Review security conditions. Check policy clauses regarding overnight storage, vehicle security, and unattended site rules to avoid invalidating claims.
Look for multi-policy convenience. Consider managing your insurance alongside your main business finances. Some digital-first platforms like Tide enable sole traders and SMEs to consolidate business banking and insurance administration in one place.
Bottom line
Hired-in plant insurance is an essential business expense if you rent machinery or heavy equipment for work in the UK. Standard plant hire contracts make you fully accountable for lost, stolen, or damaged equipment – as well as ongoing rental charges while the gear is out of commission.
Selecting an insurance policy with adequate indemnity limits keeps your business protected against unexpected liabilities and ensures your projects run smoothly without any costly financial setbacks.
Frequently asked questions
It depends on the specific policy but standard policies tend to exclude damage caused by general wear and tear, intentional misuse, gradual deterioration, war, nuclear hazards, and losses resulting from leaving machinery unlocked or unmonitored in unsecured areas.
Mechanical or electrical breakdown due to normal age and usage is not covered by plant insurance. In most cases, mechanical maintenance is the responsibility of the plant hire company, provided the fault was not caused by operator misuse or an external accident.
Yes, short-term policies do exist for single-day or weekly hires. However, if you rent machinery multiple times throughout the year, an annual policy typically offers better value and continuous protection.
Yes. Standard hired-in plant policies cover machinery while on site, stored overnight (subject to security terms), and during loading, unloading, or transit between job sites using your business vehicles.
Yes, standard hired-in plan insurance policies usually exclude road-registered motor vehicles (which require motor insurance), watercraft, aircraft, underground boring equipment, and specialist high-risk plant like tower cranes unless explicitly added via policy endorsements.
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George is a deputy editor at Finder. He has previously written for The Motley Fool UK, Nasdaq, Freetrade, Investing in the Web, MoneyMagpie, Online Mortgage Advisor, Wealth, and Compare Forex Brokers.
He's focused on making personal finance and investing engaging for everyone. To do this he draws from previous work and his Level 4 Diploma for Financial Advisers (DipFA), sharing what he’s learnt. When he’s not geeking out about money, you’ll find him playing sports and staying active.
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