With damage waivers being an area of uncertainty for many hire and rental industry professionals, Gallagher is urging those in the industry to consider a Hire Agreement review to confirm their insurance program covers all bases.
Gallagher has been the insurance partner to the Hire & Rental Industry Association (HRIA) for more than 20 years. Gallagher’s HIREPAC insurance product incorporates ‘Extended Dry Hire’ cover, which automatically covers loss or damage to any equipment caused by the hirer – meaning the end hirer is comprehensively insured.
However, Joseph Siliga from Gallagher’s National Product Development team, says that not all insurance policies offer the same cover, and failure to understand your insurance policy wording and further more your own hire contract (the agreement signed by your customers) could have major consequences in the event of a claim.
“If plant or equipment is lost or damaged while on hire, the insurer would traditionally look to recover from the party who hired the equipment,” said Siliga.
“If your damage waivers are not appropriately worded, the ‘Extended Dry Hire’ cover in your policy may not respond at claims time, simply for the reason that it can restrict and override the cover provided in your insurance policy. That can mean insurers beginning the recovery process with your client, which is a situation that most hire and rental professionals would prefer to avoid.”
Siliga recommended seeking advice from an insurance broker on Hire Agreements to avoid being caught out.
“Insurance policies can be complicated to understand, but it’s vital to know what your insurer will do in the event of a claim,” he said. “The best way to be sure you’re covered is to ask an experienced hire and rental insurance broker to conduct a Hire Agreement review.
“Although this takes a little time, and there is a cost attachment, the benefit is that it can take away a lot of uncertainty around the damage waivers process, and provide peace of mind for hire and rental business owners and their clients.
“It’s important for all HRIA members to make an informed decision on their insurance,” added Siliga. “Like most things in life, you get what you pay for. Choosing insurance based solely on price could mean you’re business isn’t properly covered at claims time.”
If you would be interested in a Hire Agreement review, or in finding out how the Gallagher HIREPAC insurance product would benefit your business, contact your nearest Gallagher Hire & Rental broker:-