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Fri May 27 2022

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Short term plant hire insurance solutions in a shrinking market

30 Nov 21 Research indicates that plant hire thefts increased by as much as 50% in the first few months of the pandemic shut down.

While shocking, this statistic is hardly surprising as lockdown left sites mothballed and items of plant exposed.

The plant hire industry contributes an estimated £4bn income to the UK economy annually. However, reports claim that more than £400m of machinery is stolen in the UK every year and this challenge is on the rise.

Plant hire companies can benefit from facilities that offer the customers separate short-term insurance protection for hired-out plant. This type of cover enables hirers to meet their obligations under the hire terms of the Construction Plant-hire Association or Hire Association Europe without running the risk of incurring a claim on their own business insurance policy, which could significantly impact their insurance costs in the future.

Darren Jarmin, a specialist plant hire and construction broker at Tysers Insurance Brokers observes: “Hire companies need to be able to allow their customers to arrange their own separate insurance policy cover. If their customers take out a separate policy any losses incurred won’t impact on their own business protection. Losing the option to offer access to short-term separate policies will be an increasing challenge for plant hirers. The companies must be able to leave their own business insurance policy claims free, otherwise they are likely to be subjected to the payment of increased premiums in the future.”

Short-term hire policies, sold directly to customers at the point of hire, offer a welcome solution to plant hirers. Unfortunately, however, the market for this type of product is contracting with some insurers withdrawing their support for such short-term policies because of the hardening markets.

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Jarmin works with plant hirers across the UK, and as part of Tysers service to the plant sector offers a simple online ‘Hireshield’ facility to clients.

There is no Financial Conduct Authority regulatory approval required, nor any legal requirements to be able to offer your customers access to Hireshield. Plant hirers are not selling an insurance product but merely pointing customers towards an online portal where they can quickly and easily independently purchase adequate protection for plant and equipment.

Customers log on to the platform using a dedicated username supplied by the plant hirer and can take out the cover in just a matter of minutes.

Jarmin invites plant hirers to contact him to learn more

This article was paid for by Tysers. 

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