Dry Hire Insurance
Perth, Sydney, Melbourne, Brisbane & Canberra

Dry hire generally involves supplying equipment without an operator, but the actual arrangement should be explained to the broker. A plant owner hiring out a machine has different interests from a contractor hiring that machine for a job. State which role the business takes, the equipment involved and where it will operate. Identify attachments, trailers, accessories and any delivery service. If an operator is sometimes supplied as well, disclose that change in service. The label dry hire should not obscure the practical responsibilities for use, maintenance, storage and return under the agreement.

Describe the potential loss scenarios separately. A machine may be stolen, overturned, damaged in transit or returned with damage after an unknown event. It may also injure a third party or damage nearby property while the hirer operates it. Physical damage cover for the plant is different from liability arising from its use, and both are different from the hirer’s contractual obligation to keep paying charges while repairs occur. Ask how the selected policy treats each exposure. A hire company’s damage waiver or limitation arrangement is not necessarily an insurance policy and should be read on its own terms.

Provide the actual hire contract, including conditions about operators, geographical use, security, transport and damage. Check who bears the risk during collection and return and who can authorise subhire. The contract may require replacement value, recovery costs, continuing hire charges or compensation for lost availability. Those obligations can exceed the protection included in a general plant policy. Ask about theft by a hirer, fraudulent hire, unexplained disappearance and damage from misuse as distinct questions. The fact that equipment has not been returned does not by itself establish that an insured theft event has occurred.

Condition reports should identify the machine, serial number, hours, attachments and existing damage at handover. Photographs and operating records can help establish the starting and return condition. Keep maintenance information and evidence of agreed operator requirements where applicable. For the owner, compare sums insured with replacement cost and the maximum value on hire at one time. For the hirer, confirm the maximum value of hired plant and whether hired in equipment is included. Discuss excesses, recovery, salvage and any restrictions on work near water, underground or at unusual sites before the machine is sent there.

If hired equipment is damaged or missing, record the last known location, operator, use and contact history. Preserve tracking information, hire documents and condition photographs. Take appropriate recovery or safety steps and contact police where relevant, while keeping the broker informed. Avoid making unsupported assumptions about whether the event is theft, fraud, breakdown or accidental damage. Those distinctions may affect the policy response. Document urgent recovery and replacement hire costs, but seek guidance before committing to major expenses or accepting a demand for all charges under the hire agreement.

At renewal, review fleet changes, machine values, customer types and hire locations. A move into longer hires, remote sites or subhire arrangements can change the exposure. Check whether customer verification and return procedures remain workable as volume grows. Consider the effect of losing several machines from one yard or site, and how long replacement equipment would take to source. Owners and hirers should both revisit the contracts they now use rather than assume last year’s wording still applies. A useful review connects possession, operation and contractual responsibility to the actual cover being purchased for the equipment. Keep the agreed use and return location visible to dispatch and receiving staff.