You have a quote for a crane, excavator or forklift and a delivery date. Three parties each hold part of the insurance answer: the supplier, your own insurer and the site owner. This guide gives the equipment rental insurance questions for each one, in the order to ask them. It lists questions, not what any policy covers.
Why settle insurance before the machine arrives, not after an incident?
After an incident, everyone reads the paperwork for the first time. That is the worst moment to find a gap.
Before delivery you still have choices. You can ask for a different certificate, change the contract, add cover through your broker, or choose another supplier. Once the machine is working on site, none of this is quick.
Insurance also changes what a quote is worth. Two similar prices may leave very different risks with you. Check the insurance terms together with the other terms in the equipment rental contract checklist.
Note. This guide is general information, not insurance advice. Policies differ by insurer, supplier and project. Your insurer or broker can tell you what applies to you.
What are the main risks when you hire a machine?
Most insurance questions fall under one of four risks. Use them as headings in every conversation and every email.
| Risk | The question behind it | Who usually holds the policy |
|---|---|---|
| The machine itself | If it is lost, stolen or damaged while on hire, who pays? | Usually the supplier, but the contract may pass some of it to you |
| Other people's property | If it damages a neighbour's wall, a buried pipe or a client's building, who pays? | Depends on the hire type and contracts: supplier, you, or both |
| Injury to people | If the operator or anyone on site is hurt, whose cover responds? | Depends on who employs the operator and who controls the site |
| Transport and loading | If it is damaged on the truck or while loading, who pays? | Depends on who arranges the transport |
The last row is often forgotten. Damage can happen on the trailer, at the ramp and during unloading. Ask who arranges that leg, and whose cover applies to the machine and to the carrier's vehicle while it moves.
Who holds which policy in wet hire and in dry hire?
The difference is the operator. In wet hire, the operator usually belongs to the supplier. In dry hire, you supply or appoint the operator. Our guide to wet hire vs dry hire explains the commercial difference. Here is what changes for insurance.
- Wet hire: ask whose insurance covers injury to the operator and injury caused by the operator. Ask who controls the lift or the dig on site, because that can matter in a claim.
- Dry hire: the operator is your responsibility, so the questions move to your own cover. Ask whether your policies respond to a hired-in machine run by your own person, and whether that person holds suitable certification.
Whichever type you choose, write the answer into the contract. A verbal "we are covered" is hard to rely on later.
Which equipment rental insurance questions should the supplier answer?
Ask for documents, not statements. Use this list:
- The policy certificate or schedule for the machine.
- The name of the insurer.
- Which risks are covered.
- The period of cover and its expiry date. Check it runs for your whole hire, including any extension.
- Whether the cover applies to the way you will use the machine on your site, and whether the attachments you need, such as a breaker or forks, are included.
- Who pays the excess (deductible) on a claim.
- Whether you are responsible for damage to the machine while it is on hire, and for what, as the contract states it.
- Which conditions apply to the cover, such as certified operators or a valid inspection certificate.
Items 6 and 7 are contract terms. If they are not written down, ask for them to be added.
For example, say the hire runs for 30 days from 1 March and the certificate expires on 20 March. The machine is then uncovered for the last 10 days unless a renewed certificate arrives. Ask for it now, not on day 20.
Tip. Note the certificate's machine details, such as model and serial number, and check they match the machine that arrives. See the handover checklist.
What should you ask your own insurer or broker?
Your project or contractor insurance may or may not cover hired-in machines. Do not assume that it does. The insurer or broker can say, so ask before the machine is booked.
Useful questions:
- Does my policy cover equipment that I hire in? Under what conditions?
- Does it cover damage to other people's property and injury to third parties caused by that machine?
- Does it respond when the supplier's operator is on my site (wet hire)? What about my own operator (dry hire)?
- Is there anything I must tell you before hiring, such as the type of machine, the work or the site?
- Does the cover continue if the hire is extended or the machine moves to another site?
Take the answers in writing. Then compare them with what the supplier showed you and look for gaps.
Which cover conditions and exclusions should you ask about?
A claim can be affected by a condition that was not met, even when a policy exists. Ask the supplier and your insurer how each of these is treated:
| Condition or exclusion | Question to ask |
|---|---|
| Use outside intended work | Is there cover if the machine is used for a different task than the one it was hired for? |
| Operator without suitable certification | What certification must the operator hold? Who checks it? |
| Lifting beyond rated capacity | What happens to the cover if a lift goes past the machine's rated capacity? |
| Expired inspection certificate | Does cover depend on a valid inspection certificate? What is its expiry date? (To read one, see what to check on a lifting equipment inspection certificate.) |
| Site or ground conditions | Are soft ground, slopes, overhead lines or buried services a condition of cover? |
| Unattended machines and theft | What security or supervision is required when the machine is left on site overnight? |
Do not read this as a list of what is excluded. These are the places to ask. The answer is in the policy wording, so ask to read the relevant part.
Watch out. Insurance is never a substitute for safe practice. Keep to the manufacturer's load chart, the lift plan, the operator's certification and the machine's inspection, whatever the policy says.
What do site owners and clients usually ask for?
Site owners and clients can set their own insurance requirements for contractors and for hired-in equipment on their site. These differ by project, so ask before the machine is booked, not at the gate.
Ask the site owner or client:
- Do you require proof of insurance for hired equipment? In what form?
- Do you need to be named on any policy?
- Do you need the operator's certificates or the machine's inspection certificate before it enters the site?
- Who must receive these documents, and how many days before arrival?
Then pass these requirements on to the supplier. If a document is missing at the gate, the machine may be turned away and your schedule slips.
Watch out. Requirements differ by project, site owner, municipality and insurer. Confirm each one before mobilising.
How to do this on Maedah
When you post a request, you can state that insurance is required, along with driver, inspection and other requirements. Suppliers that offer the lifting equipment or excavation equipment you need can then answer with sealed quotes.
Maedah does not insure machines or suppliers, and it does not check insurance. You and the supplier agree the details between yourselves. In the chat tied to each quote, ask for the certificate and the excess terms. Compare the quotes side by side, as described in how to compare equipment rental quotes, before you accept.
