Dry Hire Insurance
Keep the assets or equipment you’re hiring out with Dry Hire Insurance, a tailored solution to cover your machinery while it’s in the hands of a third party.
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Understanding Dry Hire Insurance
Dry Hire Insurance is a specialised policy designed for businesses that rent out machinery or equipment without providing an operator.Â
Unlike wet hire, where you supply both the equipment and a trained operator, dry hire means the hirer takes full control of the machinery.
This setup is common in industries like construction, mining and agriculture across Australia, but it comes with unique risks.
Why Dry Hire Insurance is Crucial
When you hand over your valuable equipment to a third party, you’re trusting them to use it responsibly. But accidents happen, and without the right insurance, you could be left footing the bill for repairs or replacements.
Here’s why Dry Hire Insurance is essential for your business:
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Covers Expensive Equipment: Machinery, such as excavators or telehandlers, can cost tens of thousands of dollars. Dry Hire Insurance protects against financial loss from damage or theft.
Protects Against Third-Party Risks: Hirers might misuse equipment, leading to costly repairs. A good policy ensures you’re not out of pocket.
Includes Public Liability: If your equipment causes injury or property damage while on hire, Public Liability Coverage can handle legal and medical costs.
Peace of Mind: With the right policy, you can focus on growing your business, knowing your assets are protected.
Minimises Downtime: Covers lost income if your crane is out of action due to repairs or accidents.
Who Requires Dry Hire Insurance?
Below are the main groups who need dry hire insurance:
01
Equipment Rental Businesses: Companies that specialise in renting out machinery (e.g., excavators, cranes, forklifts or generators) need Dry Hire Insurance.
02
Construction Companies: Construction businesses that own equipment and occasionally rent it out to other contractors or firms need dry hire insurance. This is common for companies with surplus machinery, like scissor lifts or bobcats, during quieter periods.
03
Agricultural Businesses: Farmers or agricultural companies renting out equipment, such as tractors or harvesters, to other farms or contractors require Dry Hire Insurance to cover their assets during the hire period.
04
Event and Production Companies: Businesses renting out equipment for events (e.g., lighting rigs, sound systems or staging) need Dry Hire Insurance to cover damage or theft by event organisers or third parties.
05
Small Business Owners or Sole Traders: Individuals who own high-value equipment, like a landscaper renting out a stump grinder or a tradie leasing a cherry picker, should get Dry Hire Insurance to protect their investment.
06
Mining and Industrial Operators: Companies in the mining or industrial sectors that lease heavy machinery, such as drilling rigs or loaders, to other operators require Dry Hire Insurance to cover the high-value equipment used in demanding environments.
Key Features of Dry Hire Insurance
Not all policies are created equal, and standard Plant and Equipment Insurance often won’t cover dry hire activities. Here’s what you can expect from a comprehensive Dry Hire Insurance policy:
Accidental Damage
Covers repairs for unexpected damage during hire (e.g., a hirer dropping a tool or crashing a machine).
Theft Protection
Replaces stolen equipment which is critical in high-risk areas.
Malicious Damage
Protects against intentional damage by hirers or third parties.
Public Liability
Typically offers $10 million or more in coverage for third-party injuries or property damage caused by your equipment.
Attachments Included
Ensures all listed attachments, like buckets or drills, are covered alongside the main equipment.
Flexible Premiums
Often offers monthly payment options through premium funding to align with your cash flow.
Frequently asked questions
Does dry hire insurance cover all types of equipment?
Most policies cover common equipment like excavators, forklifts or generators, but you must list all items and attachments in the policy.
Can I get dry hire insurance for a single piece of equipment?
Yes, you can get Dry Hire Insurance for one machine. Premiums for a single item can vary.Â
Do I need a hire agreement with dry hire insurance?
Yes, a clear Dry Hire Agreement is just as important as your insurance policy. This contract outlines the terms of the hire, including who’s responsible for damage. Without a clear agreement, you might struggle to recover costs from a hirer. It’s recommended that you consult a legal expert and review it to avoid gaps.
Does Dry Hire Insurance cover equipment used interstate?
Yes, many policies offer nationwide coverage but you must inform your broker if equipment will be used in another state. Premiums may vary based on location due to differing risk profiles, such as higher theft rates in urban areas.
Can dry hire insurance cover equipment rented to inexperienced operators?
Yes, although premiums may be higher if hirers lack experience as this increases risk.