Hired In Plant Insurance
Plant is insured on the annual hire charges and not the value of the equipment. The market value is required to ensure this does not exceed the policy limits for plant.
A hire agreement may request you to keep the equipment insured for full replacement value without restriction or excess, against loss or damage.
As the hirer does not own the plant or have an insurable interest, it is not possible to insure for the full replacement value. This contract could be termed as ‘unfair contract conditions’ and you should take advices before you sign this agreement.
The insurer will settle a claim under CPA (Contractors Plant Association) conditions, which will be on the basis of the value of the item of plant at the time of loss less any deduction for wear and tear.
You must also check the security on the plant. Has it got an immobiliser or a tracking device? This must be checked prior to accepting the equipment.
It is vital you have adequate cover when hiring plant or tools and you must make sure the security is up to standard. There are many claims which occur due to theft of equipment (see our previous post here). Making sure you have the correct security in place is essential and will help to keep your premium down.
Third Party Road Risks
Motorised plant such as a fork lift truck, dumper which can be driven on the highway or even on the forecourt of your premises must have third party road risks cover should the item of plant be involved in an accident with another vehicle or pedestrian. The plant can be added to your company fleet policy or a separate road risks policy can be taken out.
To discuss your hired in plant needs or if you have any queries please call us on 01707 883377 or email us on info@bromwall.com
Image courtesy of Chaiwat / FreeDigitalPhotos.netTags: Contractors All Risks, cover, Hired in plant insurance, in, plant
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