How to Insure Hired-in vs Owned Plant – What’s the Difference?

If your construction business uses heavy machinery, understanding the difference between hired-in plant insurance and owned plant cover is essential. Many UK contractors assume their policy protects everything, but if your cover doesn’t match how the plant is acquired, you could be exposed to major financial risk.

Here’s a simple breakdown of how these two types of plant insurance work, and how to choose the right one for your business.

What Is Owned Plant Insurance?

Owned plant insurance protects machinery that your business owns outright. This includes diggers, dumpers, forklifts, cherry pickers, or any other equipment that you have purchased and registered under your company name.

It typically covers:

  • Accidental damage on-site or in storage

  • Theft or vandalism

  • Fire or weather-related loss

  • Damage during transit between job sites

  • Optional: business interruption, public liability, and breakdown cover

Owned plant policies can be set up for individual items or as part of a fleet. It’s ideal for firms that invest heavily in machinery or operate long-term equipment.

What Is Hired-in Plant Insurance?

Hired-in plant insurance protects equipment that you rent or lease short-term, often from plant hire companies under CPA terms or similar.

When you hire equipment, you’re usually liable for any damage or loss while it’s in your possession. This means if a mini digger is stolen overnight or damaged on-site, you may have to pay the hire company the full replacement cost plus ongoing hire charges.

This policy type typically includes:

  • Damage, theft or total loss of hired plant

  • Continuing hire charges (while the machine is out of use)

  • Transit risks

  • Optional: legal liability for plant damage

Many site managers now require contractors to show evidence of hired-in plant cover before working.

Why the Difference Matters

Here’s the critical distinction:
Owned plant insurance won’t cover hired equipment, and hired-in plant cover won’t apply to your owned machines.

If your policy doesn’t match the status of the machine, any claim could be rejected, leaving you to cover thousands in damages or replacement costs.

What If You Use Both?

Many contractors do. You might own a small fleet of diggers and hire in a crane or access platform as needed. In this case, a combined policy is the best solution. These policies include both hired-in and owned plant under one plan, with tailored cover limits for each.

This helps you:

  • Avoid duplicate or missing cover

  • Manage one renewal and premium

  • Get competitive rates across all your machinery

An experienced broker can structure this based on your hire frequency, equipment value, and site locations.

Final Word: Always Match Insurance to Ownership

Whether you’re renting an excavator for a week or managing 20 company-owned machines, always insure based on who owns the plant. If you’re not sure, check the hire agreement or speak to your broker.

With the right cover in place, you can focus on getting the job done, knowing your equipment is protected, however it’s acquired.

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Excavator loading soil into a tipper truck on a construction site, representing insured plant and commercial vehicles

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