Hire Contract Liability / Contractual Liability Insurance

Protect your plant hire business against liability assumed under hire agreements and contracts

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We compare quotes from leading plant & hire insurers

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

Insurance for Contractual Risk in Plant & Tool Hire

Hire contracts are essential to protect plant hire and tool hire businesses, but they also create significant legal exposure. Many hire agreements transfer responsibility for loss, damage or third-party claims through contractual clauses that go far beyond standard public liability insurance.

If your business signs hire contracts, issues hire terms to customers, or operates under CPA Conditions or bespoke agreements, you may be assuming liabilities that are not covered unless specifically insured.

Insure24 provides specialist Hire Contract Liability / Contractual Liability Insurance designed to protect plant hire yards, tool shops and equipment rental businesses against liabilities arising purely because of contract wording.

What Hire Contract Liability Insurance Covers

  • Liability assumed under hire contracts
  • Indemnities given to customers or third parties
  • Contractual responsibility for hired equipment
  • Claims excluded under standard liability policies
  • CPA Conditions contractual exposure
  • Damage or loss liabilities transferred by contract
  • Legal defence costs arising from contract disputes
  • Contractual claims following equipment incidents
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Why Contractual Liability Is a Major Risk

Standard public liability insurance only covers your legal liability under common law. Many hire contracts impose liability regardless of fault, meaning insurers can legitimately decline claims unless contractual liability extensions are in place.

  • Contracts often transfer risk without negligence
  • CPA terms can override standard policy exclusions
  • Loss or damage claims can be enforced contractually
  • Third-party claims may be passed back to you
  • Legal costs can escalate quickly

Who Needs Hire Contract Liability Insurance?

  • Plant hire businesses using CPA terms
  • Tool hire shops issuing hire agreements
  • Equipment rental companies
  • Construction businesses hiring equipment out
  • Event & temporary equipment hire firms
  • Multi-site or national hire operators

Common Hire Contract Liability Scenarios

  • Customer damaged hired equipment but disputes liability
  • Contract requires you to indemnify a site owner
  • Hired plant causes damage and contract passes responsibility
  • Loss of hired equipment with no negligence involved
  • Legal costs defending contractual claims
  • Claims excluded by standard public liability wording

Why Choose Insure24

  • Specialists in plant hire contractual risk
  • Understanding of CPA and bespoke hire terms
  • Policies structured to avoid contract gaps
  • Clear explanation of what is and isn’t covered
  • UK-based advisers and claims support
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FREQUENTLY ASKED QUESTIONS

+-What is hire contract liability insurance?

Hire contract liability insurance covers liabilities that arise purely because of contractual terms in hire agreements, which would otherwise be excluded under standard liability policies.

+-Does public liability insurance cover contract terms?

Not always. Public liability typically excludes liabilities assumed under contract unless the liability would have existed anyway under common law.

+-Are CPA hire conditions covered?

CPA terms can be covered, but they must be disclosed and agreed with insurers to ensure the correct contractual liability extensions are in place.

+-Does this insurance cover damage to hired equipment?

It can cover contractual responsibility for damage or loss where liability is imposed by contract, subject to policy limits and wording.

+-How much does hire contract liability insurance cost?

Cost depends on contract wording, turnover, equipment type and risk profile. Insure24 compares specialist insurers to secure competitive pricing.

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