Accidental Damage to Hired-Out Equipment

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Specialist insurance covering accidental damage to tools and plant while on hire to customers

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We compare quotes from leading insurers

  • Allianz
  • Aviva
  • QBE
  • RSA
  • Zurich
  • NIG

ACCIDENTAL DAMAGE COVER FOR HIRE EQUIPMENT

Why Accidental Damage Cover Is Essential

When equipment is hired out, it is used by people outside your direct control. Even experienced contractors can cause accidental damage through impact, incorrect operation, overloading, water exposure or poor handling. For hire businesses, damage is often more frequent than outright theft.

Accidental Damage to Hired-Out Equipment Insurance helps protect your cashflow when tools or plant are returned damaged, unserviceable or unsafe to rehire. Without this cover, repeated repair costs can quietly erode margins.

What Is Accidental Damage to Hired-Out Equipment?

This cover protects hired-out tools and equipment against sudden and unforeseen physical damage that occurs during the hire period. It focuses on damage events rather than theft or total loss.

Accidental damage insurance is commonly added as an extension to hire stock cover, but can also be structured as a defined section with its own excesses and limits depending on your fleet and claims history.

  • Impact and collision damage
  • Damage caused by incorrect operation
  • Water ingress and electrical damage
  • Dropped equipment during use or handling
  • Damage discovered on return from hire
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Common Accidental Damage Scenarios

Most damage claims fall into predictable categories. Understanding these helps you structure cover and set realistic excesses.

  • Breakers and drills damaged by incorrect bits or overload
  • Water damage to electrical tools used outdoors
  • Dropped equipment during lifting or transport
  • Impact damage from site vehicles or plant
  • Internal damage from lack of lubrication or incorrect fuel
  • Damage during loading and unloading on return
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FREQUENTLY ASKED QUESTIONS

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Is accidental damage covered automatically under hire insurance?

Not always. Some policies limit cover to theft and insured perils unless accidental damage is specifically included. It’s important to check whether damage during use is covered and what excess applies.

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Does this cover misuse by customers?

Policies usually cover sudden accidental damage, but not gradual wear and tear or deliberate misuse. Clear hire terms and condition checks help support claims.

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Is wear and tear covered?

No. Wear and tear, gradual deterioration and maintenance issues are typically excluded. Accidental damage relates to sudden, unforeseen events.

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Can excesses be adjusted for damage claims?

Yes. Many hire businesses choose higher excesses for accidental damage to control premium, while retaining lower excesses for theft or total loss.

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Does this apply to all hired equipment?

Cover can apply to most hired tools and small plant, but higher-risk items or specialist equipment may have specific conditions or sub-limits.

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