Dry Hire Insurance

Dry hiring is when you hire out your machine without providing an operator to do the work. 

Wet hire is where the client is hiring the machine and the operator to perform the required work. 

Wet hire is usually the default assumption when you’re insuring your plant and machinery. If you are doing the wet hire work as well then make sure your public liability insurance covers you for earthmoving activities.

To put a dry hire insurance policy in place, most insurers will require a dry hire agreement to be signed by the hirer.

The dry hire agreement will usually be provided to the insurer for their approval.

Most insurers will check the agreement to ensure that it has an applicable clause that advises the hirer that they are now solely responsible for the plant and machinery until it is returned. 

Your level of risk and exposure is up to you however, if you go down this route than assume that you have no cover in place what so ever. The additional premium to cover dry hire is minimal and should be considered even if the hiring component is quite small.

The consequential damage can be covered however, the initial failure or component that has broken down usually isn’t covered under a material damage type policy.

No, most insurers will require a dry hire agreement to be in place which holds the hirer liable for damages caused to your machine. Some insurers will accept a damage waiver option to be in place but will charge a higher premium for the reduced chance of recovering costs. Damage caused by negligence is solely on the operator of the machine.

It is expected that the machines be well kept and regularly maintained however, personal injury or property damage caused due to something occurring with the machines would typically be covered under your public liability insurance. For example, if nut or bolt was to fly off the machine and damage someone’s eye and this was due to the maintenance and upkeep of the machine that you are responsible then this type of incident would be covered under your public liability insurance.

The dry hire insurance cover is typically for the machine and it’s attachments along with any other items specifically noted on the policy.

For good order you should regularly check your machines when they are signed in and out by the hirer to ensure you further damage isn’t caused.

Only some insurers will offer cover for theft by hirer or the hiring party failing to return the items as agreed. Some insurers may charge a slightly higher premium to offer a more broad level of cover so it’s important to assess your own risk tolerance to determine which option is better suited for you.

Yes, on a dry hire insurance policy you should have the equipment and all attachments listed and included under the cover. The reason for this is if they needed to be replaced and you didn’t have the items listed an insurer will not approve an invoice for purchase with additional items on it. As most attachments are sold in addition, it’s best to include them on your policy.