Construction Plant Insurance (Owned & Hired-In Plant): The UK Contractor’s Complete Guide

What is construction plant insurance?

Construction plant insurance (often called contractors’ plant insurance) protects the machinery, tools, and equipment you use on site—whether you own it or you hire it in. “Plant” can mean anything from a mini digger to a telehandler, from a generator to specialist cutting equipment.

For UK contractors, plant is a major investment and a major risk. Theft, accidental damage, fire, flood, vandalism, and transport incidents can wipe out cashflow fast. Plant insurance is designed to keep projects moving by paying for repair or replacement (and sometimes hire costs) when the unexpected happens.

Owned plant vs hired-in plant: what’s the difference?

Plant insurance is usually split into two key areas:

• Owned plant: equipment you own (including leased/HP plant if you’re responsible for insuring it).

• Hired-in plant: equipment you rent from a hire company.

They’re related, but the insurance need is different.

Owned plant insurance (contractors’ plant)

Owned plant cover is typically arranged on an “all risks” basis (subject to exclusions). It protects your plant against sudden and unforeseen loss or damage.

Common examples of owned plant:

• Excavators and mini diggers

• Dumpers

• Telehandlers and forklifts

• Rollers and compactors

• MEWPs/cherry pickers

• Generators, compressors, lighting towers

• Site cabins (sometimes covered separately)

• Specialist tools and equipment

Hired-in plant insurance (hired plant)

Hired-in plant insurance protects you when you’re responsible for hired equipment. Hire agreements usually make the hirer liable for loss or damage while the plant is in their care, custody, or control.

This cover typically includes:

• Damage to hired-in plant (repair/replacement costs)

• Continuing hire charges while the plant is being repaired or replaced

Some policies also include cover for hire agreement liability and may extend to accessories and attachments.

Why plant insurance matters in construction

Plant is one of the most frequently stolen and damaged asset types in UK construction. Even a “small” loss can be expensive:

• Replacement lead times can delay projects

• Hire charges can continue even when plant is unusable

• Contract penalties can kick in if you miss deadlines

• You may need to pay for alternative hire at short notice

Plant insurance is not just about replacing a machine—it’s about protecting your ability to deliver work.

What does construction plant insurance typically cover?

Cover varies by insurer and wording, but most good policies can be built around these core protections.

1) Theft and attempted theft

Plant theft is a top concern, especially for:

• Diggers and dumpers

• Attachments (buckets, breakers)

• Portable tools and generators

Insurers will often require minimum security standards (more on this later). If those conditions aren’t met, theft claims can be declined.

2) Accidental damage

This includes sudden, unforeseen damage—think:

• Striking hidden services

• Rollovers and collisions

• Operator error

• Dropping plant during loading/unloading

3) Fire, flood, storm, and vandalism

Construction sites can be exposed environments. Flooding, arson, and malicious damage can be catastrophic, particularly for plant stored overnight.

4) Transit and off-site storage (optional or included)

Many contractors assume plant is only insured “on site.” In reality, you may need cover for:

• Transit between sites

• Storage in a yard

• Temporary storage at a lock-up

If you move plant regularly, make sure your policy includes transit and specifies any conditions (e.g., locked vehicle, attended loading).

5) Third-party liability (separate policy)

Plant insurance is about the plant itself. If your plant injures someone or damages third-party property, that’s typically handled under:

• Public liability insurance

• Employers’ liability insurance (for employee injury)

Some insurers can package these together, but they’re different covers.

Key cover options you should consider

Plant insurance can be tailored. The right options depend on your trade, contract type, and how you use equipment.

Continuing hire charges (especially for hired-in plant)

If a hired machine is damaged or stolen, the hire company may continue charging until it’s repaired or replaced. This can be a nasty surprise.

A strong hired-in plant section can cover:

• Ongoing hire costs

• Additional hire costs for a replacement machine (sometimes)

Hired-in plant limit and “any one item” limit

Policies usually have:

• Total hired-in plant limit (e.g., £50,000)

• Any one item limit (e.g., £25,000)

If you hire a £60,000 telehandler but your any-one-item limit is £25,000, you’re exposed. Review limits each time your hire pattern changes.

Owned plant sum insured and valuation basis

Owned plant is usually insured on:

• Replacement as new (for new-ish plant)

• Indemnity/market value (for older plant)

Underinsurance is common. If your sums insured are too low, insurers may apply “average” and reduce claims payments.

Tools and portable equipment

If you rely on high-value tools (laser levels, breakers, welding gear), you may need:

• A separate tools section

• Higher single item limits

• Cover away from site (e.g., in a van)

Plant attachments and accessories

Buckets, grabs, breakers, augers, and specialist attachments can be expensive and easy to steal. Make sure they’re:

• Listed

• Included in sums insured

• Covered in transit and storage

Hired-in plant liability (contractual liability)

Hire agreements can be strict. Some include clauses that increase your responsibility beyond “reasonable care.” Your insurance should align with typical hire terms.

Loss of hire (for plant hire businesses)

If you own plant and hire it out to others, you may need loss of hire cover (different from continuing hire charges). This protects your income if your plant is out of action.

Common exclusions and claim pitfalls

Plant insurance is often described as “all risks,” but exclusions matter. Here are frequent issues that cause claims disputes.

Wear and tear, breakdown, and gradual deterioration

Most policies won’t cover:

• Mechanical breakdown

• Electrical failure

• Wear and tear

• Rust, corrosion, cracking

However, if breakdown leads to an insured event (e.g., fire), that resulting damage may be covered. If you want breakdown cover, ask for it specifically.

Unattended vehicle theft conditions

If tools are stolen from a van, insurers may require:

• Forced entry evidence

• Approved locks

• No overnight storage in the vehicle (or stricter conditions)

Theft from open sites

Many theft claims fail because security conditions weren’t met, such as:

• Plant left with keys in

• No immobiliser or tracker where required

• Site not secured as per policy conditions

Employee dishonesty

Theft by employees may be excluded unless you have a fidelity/employee dishonesty extension.

Unlicensed or unauthorised operators

If plant is used by someone without the correct training/competence, insurers may challenge the claim. Maintain training records and plant operator authorisations.

Who needs construction plant insurance?

Plant insurance is relevant for most construction and allied trades, including:

• Groundworkers and civil engineering contractors

• Builders and general contractors

• Demolition contractors

• Landscaping and paving firms

• Roofing contractors (MEWPs, hoists)

• Utilities and drainage contractors

• Scaffolding firms (specialist equipment)

• Plant-intensive subcontractors

Even if you “don’t own much plant,” hired-in plant exposure can be significant.

How much does construction plant insurance cost?

Premiums depend on:

• Type of plant (diggers and telehandlers often higher risk)

• Total sums insured (owned and hired limits)

• Claims history

• Security measures (trackers, immobilisers, storage)

• Where you work (theft hotspots, urban sites)

• How plant is transported and stored

• Excess level

There isn’t a single “typical” price, but the fastest way to control cost is to reduce theft risk and keep valuations accurate.

Practical ways to reduce plant theft and lower premiums

Insurers love evidence. If you can show robust controls, you often get better terms.

Site security basics

• Lockable compounds and fencing

• Lighting and CCTV where possible

• Secure key management (keys removed, locked away)

• End-of-day plant positioning (bucket down, against obstacles)

Tracking and immobilisation

• Fit GPS trackers on high-value plant

• Use immobilisers and deadlocks

• Consider forensic marking (e.g., microdot/SmartWater)

Storage and yard controls

• Store plant in a secure yard with gates, lighting, and CCTV

• Use lockable containers for attachments and tools

• Keep an inventory with serial numbers and photos

Documentation and maintenance

• Keep service records and inspection logs

• Document operator training/competence

• Record daily checks (helps with both safety and claims)

Plant insurance and contract requirements

Depending on who you work for, you may be asked to evidence:

• Public liability limits (often £5m or £10m)

• Employers’ liability (legal requirement if you employ staff)

• Contractors’ all risks (for works in progress)

• Plant insurance (owned and hired)

If you’re working on larger sites, main contractors may require specific endorsements, such as:

• Principal contractor interest

• Waiver of subrogation (less common)

• Higher hired-in plant limits

Construction insurance vs plant insurance: how they fit together

“Construction insurance” is often used as an umbrella term. In practice, many contractors need a package that may include:

• Public liability: injury/property damage to third parties

• Employers’ liability: injury/illness to employees

• Contractors’ all risks (CAR): damage to the works in progress and materials

• Contractors’ plant: owned plant and tools

• Hired-in plant: hired equipment and continuing hire charges

• Professional indemnity (if you design/specify)

• Contractors’ legal expenses

• Personal accident

Plant insurance is a crucial piece, but it doesn’t replace the others.

What to check before you buy (or renew)

Use this checklist to avoid the most common gaps.

1) Your owned plant schedule

• Are all items listed (or covered under a blanket sum)?

• Are values up to date?

• Are attachments included?

• Is the valuation basis correct (new-for-old vs market value)?

2) Your hired-in plant exposure

• What’s the maximum value you hire at any one time?

• What’s the maximum value of any one item?

• Do you hire specialist kit seasonally?

3) Transit and storage

• Is plant covered in transit?

• Is it covered in your yard and at temporary locations?

• Are there conditions about unattended vehicles or overnight storage?

4) Security conditions

• Do you have trackers where required?

• Are keys removed and stored securely?

• Are compounds and yards compliant with policy conditions?

5) Excesses and claim process

• Are theft excesses higher than accidental damage excesses?

• Do you have a clear incident reporting process?

Claims: what to do if plant is stolen or damaged

If you need to claim, speed and evidence matter.

• Report theft to the police immediately and obtain a crime reference number

• Notify your insurer/broker as soon as possible

• Take photos of the scene and any damage

• Provide proof of ownership/hire agreement

• Provide service records and plant details (serial numbers, tracker data)

A well-documented claim is usually a faster claim.

Frequently asked questions (FAQ)

Is hired-in plant insurance included automatically?

Not always. Some contractors’ plant policies include it as standard; others require it as an add-on. Always check your hired-in plant limit and any-one-item limit.

Does plant insurance cover theft from site overnight?

It can, but it’s usually subject to security conditions. If the policy requires immobilisers, trackers, or a secured compound, you must comply.

Does plant insurance cover tools in a van?

Sometimes, but it’s often restricted and subject to strict unattended vehicle conditions. If tools are critical to your work, ask for dedicated tools cover.

Do I need plant insurance if I only hire equipment?

Yes—hire agreements commonly make you responsible for loss or damage. Without hired-in plant cover, you may have to pay repair/replacement and continuing hire charges.

Is plant covered while being transported?

Only if transit is included. If you move plant between sites, confirm cover for loading/unloading and road transit.

Final thoughts: build plant cover around how you actually work

Construction plant insurance works best when it mirrors real life: what you own, what you hire, where you store it, and how you move it. The right policy can mean the difference between a minor disruption and a major cashflow crisis.

If you want a quote-ready checklist, start by listing your top 10 items (owned and hired), where they’re stored overnight, and what security you use. That information will drive better terms and fewer claim headaches.

Need this tailored to a specific trade (groundworks, roofing, demolition, landscaping) or a specific plant list? Tell me your typical plant and maximum hired-in value and I’ll adapt the blog to match.