Common Exclusions & What’s Not Covered

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Understand the exclusions in plant hire shop insurance - and avoid costly surprises at claim time

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Why Understanding Exclusions Is Critical for Plant Hire Shops

Insurance is designed to protect your plant hire business - but it does not cover every possible scenario. Every policy contains exclusions, conditions and limitations that define when a claim will and won’t be paid.

Many disputes arise not because cover was absent, but because exclusions were misunderstood. This is particularly common in plant hire, where equipment is hired out, transported, operated by third parties and stored in open yards.

This guide explains the most common exclusions in plant hire shop insurance and how Insure24 helps you avoid unexpected gaps in cover.

Common General Policy Exclusions

Most plant hire insurance policies share a core set of exclusions that apply across property, plant, liability and business interruption sections.

  • Wear and tear or gradual deterioration
  • Mechanical or electrical breakdown (unless specifically insured)
  • Defective workmanship or faulty repairs
  • Pre-existing damage
  • Deliberate acts by the insured
  • Consequential loss not insured elsewhere

These exclusions mean insurance is not a maintenance contract - it responds to sudden, unforeseen events rather than predictable failures.

Hire-Related Exclusions Plant Hire Businesses Must Watch

Hiring equipment introduces additional exclusions that do not apply to owned-use machinery. These are among the most common causes of declined claims.

  • Use outside agreed hire terms
  • Operation by unqualified or unauthorised users
  • Sub-hiring without consent
  • Use for excluded activities (e.g. demolition, forestry, marine work)
  • Failure to follow operating instructions
  • Damage caused by misuse rather than accident

Clear hire agreements and customer vetting are essential to maintaining cover.

Security-Related Exclusions

Theft, vandalism and malicious damage claims are commonly affected by security conditions. If these are not met, insurers may refuse to pay.

  • Failure to secure premises or yards
  • Keys left in unattended machinery
  • Alarms not set or maintained
  • CCTV not operational
  • Equipment left outside agreed storage areas
  • No evidence of forced entry

Insurers expect security to match what was declared at quotation stage.

Unoccupied Premises Exclusions

When a plant hire shop, depot or yard is left unoccupied, standard policies often restrict cover automatically.

  • Theft cover removed after a set vacancy period
  • Escape of water excluded unless systems are drained
  • Reduced cover for vandalism or malicious damage
  • Inspection requirements not met
  • Fire-only cover applied by default

Specialist unoccupied premises insurance is often required to maintain protection.

Common Liability Exclusions

Public and employers’ liability policies also contain exclusions that plant hire businesses must understand.

  • Contractual liability beyond common law
  • Injury to employees (under public liability)
  • Professional advice or design liability
  • Pollution unless sudden and accidental
  • Fines, penalties and punitive damages

Hire contracts should be reviewed to ensure liability is not unintentionally extended.

Business Interruption Exclusions

Business interruption insurance does not respond to every trading disruption.

  • No insured damage trigger
  • Under-declared gross profit
  • Indemnity period too short
  • Supplier failure not insured
  • Losses outside the policy period

Accurate financial declarations are essential for valid BI claims.

How to Avoid Exclusion-Related Claim Issues

  • Use clear, insurer-approved hire contracts
  • Maintain security and inspection logs
  • Notify insurers of changes in use or occupancy
  • Declare machinery values accurately
  • Review exclusions annually at renewal

Many exclusions can be reduced or removed through correct structuring of cover.

Why Insure24 Helps You Avoid Gaps in Cover

  • Specialists in plant hire insurance
  • Policy wording explained in plain English
  • Hire contracts reviewed
  • Security requirements clearly documented
  • Claims support when exclusions are questioned
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FREQUENTLY ASKED QUESTIONS

+-Why do insurance policies have exclusions?

Exclusions define what insurers will not cover and help keep premiums affordable.

+-Can exclusions be removed?

Some exclusions can be amended or covered by extensions, depending on the risk.

+-What is the most common cause of declined claims?

Security breaches and hire misuse are among the most common reasons.

+-Should I read the full policy wording?

Yes. Insure24 also explains key exclusions before cover starts.

+-Can Insure24 help review my current policy?

Yes. We regularly review existing policies to identify hidden gaps.

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