If I hire something - what is my legal liability for the equipment?

Insurance is such a dull subject. I know, my Dad has spent many years working in the IT industry for Insurance companies. But its really important because when things go wrong (and they can) it protects you financially.

 

All our equipment is insured - it has to be. The cost of a new digger is horrendous! But here is the kicker - did you know the insurance liability on a piece of hired equipment is with you - the hirer. Even the CPA (Constructors and Plant Hire Association) model terms and ocnditions, to which we follow and adhere to as members, makes it clear the insurance liability is on the hirer. So if something happens, a piece of equipment is stolen whilst on hire to you for example, our insurers will pay out to us and replace it. However the insurance company has the right to come after you to recover their losses. So suddenly you get a bill for a £30,000 digger.

 

That is not funny. Nor is it fair but most local hire companies will have it hidden in their terms and conditions. Many hire companies, particularly builders hiring out their own equipment to you when they aren't using it, don't even realise thats the situation - as far as they are concerned the machine is insured - they don't realise the liability is on you. Or worse - don't want to have that conversation for fear you won't hire their machine from them.  The brand name nationwide hire companies hide it in their terms and conditions or buried on their website (much like car rental companies) where they offer an attractive day rate but then load it up, as much as 30% for additional extras. 

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At 007 Diggers we don't think this is right and we want to be transparent. We also don't want you to be worrying about anything other than completing your project. 

We've teamed up with JCB Insurance Services to offer their HireMaxx policy. This means you, for a small additional fee, are fully covered should anything happen to any piece of equipment other than an excess (dependent on the value of the machine) in the event of a claim which will be detailed in your invoice or contract note. Small items such as broken windows, beacons, lights etc are charged at cost as per any type of rental agreement but normally this is nothing to be concerned about. 

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We debated adding in the cost of insurance to our total rental fees and not draw attention to the insurance part but because we want to be upfront and we know you need to be able to hire costs when you ring around, on a like for like basis. Whether you hire from us or not, please just make sure you understand what you are signing up for but we are pretty sure that even with the insurance premium we offer great value.   

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If you are a regular hirer of equipment it could be more cost effective to purchase your own cover - this is known as Hired In Plant Insurance and means you have the insurance cover and therefore you can opt out of our insurance. If this is of interest, JCB Insurance Services (along with others) can provide you with an annual or one-off style policy. 

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JCB Insurance HireMaxx is underwritten by Aviva, so you know that it is a reputable cover. All we ask is in the event of anything happening you are able to speak with Aviva if they ask you to. 

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Look, its really complicated and its pretty dry subject. If you got to this point, then we salute you! If you have any questions about how it all works, then please just ask! Otherwise, relax in the knowledge you don't have anything to worry about if something goes wrong. 

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Rory Hopkins-Bond, July 2025