Dry hire versus wet hire
Hiring out a machine without an operator (dry hire) and with your operator (wet hire) carry different risks. Insurers treat them differently, and some policies only cover one.
Plant and equipment insurance
Cover for mobile plant and machinery such as excavators, loaders, skid steers, cranes and generators, owned or hired.
The short answer
What is plant and equipment insurance?
Plant and equipment insurance, also called mobile plant and machinery cover, protects machines such as excavators, loaders, skid steers, rollers, cranes and generators against damage, theft and fire. It can also include liability while the plant is working and cover for plant you hire in from others.
What does plant and equipment insurance usually cover?
Every policy is different, so the wording always decides. These are the typical inclusions and exclusions.
Usually covered
- Accidental damage to owned plant, including overturning, collision and fire
- Theft of plant and attachments, subject to security conditions
- Hired-in plant you are responsible for under a hire agreement, when included
- Liability for damage the plant causes while operating, when the policy includes it
Usually not covered
- Wear and tear and gradual deterioration
- Mechanical or electrical breakdown, unless machinery breakdown cover is added
- Plant operated by people outside the policy's operator conditions
- Lost income while the machine is off the job, unless specifically included
Who uses plant and equipment insurance?
Earthmoving, civil, demolition, landscaping and construction businesses that own or hire machinery, and plant-hire businesses that hire machines out, with or without an operator. It is especially important when the machines are financed, since lenders usually require cover.
What do clients and sites ask for?
Hire companies typically require proof of cover for hired-in plant. Head contractors may also ask for proof that plant on their site is insured, and for liability limits that cover plant operations.
When it gets harder
When does plant and equipment insurance get more complicated?
Registered plant on the road and on the job
Registered plant can sit between a motor policy and a public liability policy. It is worth checking which policy responds when the machine causes damage while working.
Work in high-risk environments
Mines, waterways, tunnels and demolition sites can be excluded or limited, and may need specialist cover.
Cost
What affects the cost of plant and equipment insurance?
| Factor | Why it matters |
|---|---|
| Value and type of plant | Larger and more specialised machines cost more to insure. |
| Where it works | Civil, mining and demolition work are priced differently from landscaping or general construction. |
| Overnight security | Secure yards and tracking devices can help with theft risk. |
| Operator experience | Who operates the plant and their experience matters. |
| Claims history | Previous damage and theft claims affect pricing. |
Common questions
Questions about plant and equipment insurance
Is my excavator covered by my public liability policy?
Public liability may cover damage the excavator causes to other people's property, depending on the wording and whether it is registered. Damage to the excavator itself needs plant and equipment cover.
Do I need insurance for hired plant?
Usually yes. Most hire agreements make you responsible for the machine while it is in your care, and hire companies often ask for proof of cover or charge a damage waiver.
What is machinery breakdown cover?
It is an optional extension that covers sudden mechanical or electrical breakdown, which standard plant policies usually exclude.
Plant and equipment by trade
How plant and equipment insurance applies to specific kinds of work.
Other types of insurance
This page is general information only. It does not take into account your objectives, financial situation or needs, and it is not a recommendation to buy any insurance product. Always read the policy wording and, where applicable, the Product Disclosure Statement.
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