What insurance do I need when hiring an excavator in NSW?

## Insurance Requirements for Dry Hire Excavator in NSW Understanding your insurance obligations when hiring an excavator is essential — particularly in a dry hire arrangement where you, not the hire company, are operating the machine. ### What Insurance Does BuildHire Carry? BuildHire carries insurance on the machines themselves — covering the physical asset against damage during transit and while in BuildHire's possession. However, once the machine is delivered to your site and in your care, custody, and control, your insurance obligations begin. ### What Insurance Do You Need as the Hirer? **Public Liability Insurance (mandatory):** Public liability insurance covers third-party bodily injury or property damage caused by the excavator during your hire period. If the machine damages a neighbour's fence, strikes an underground service, or injures a bystander, your public liability insurance covers the claim. BuildHire recommends a minimum of $10 million public liability cover. Most home and contents policies do not cover commercial equipment hire — check your policy before hiring. **Owner builders:** NSW owner builder permits require public liability insurance as a condition of the permit. Your owner builder public liability policy should cover the use of hired plant on your site. **Contractors and tradies:** Your existing public liability policy (typically $5–20 million) should cover hired plant. Check your policy wording — some policies exclude hired-in plant or require a specific endorsement. **Hired-in Plant Insurance (optional but recommended):** Hired-in plant insurance covers damage to the excavator itself while it's in your care. If the machine is damaged during your hire period — struck by another vehicle, rolled on a slope, or damaged by operator error — hired-in plant insurance covers the repair cost. Without hired-in plant insurance, you are liable for repair costs. Minor damage (bucket teeth, hydraulic hose) can cost $500–$2,000. Major damage (structural, engine) can cost $10,000–$50,000. BuildHire offers an optional damage protection waiver at the time of booking. This is not insurance — it limits your liability for accidental damage to the machine during normal operation. It does not cover wilful damage, misuse, or operation outside the machine's rated capacity. ### What Insurance Does NOT Cover - Damage caused by operating the machine outside its rated capacity - Damage caused by operating the machine in conditions it's not designed for (deep water, extreme slopes) - Damage caused by wilful misuse or negligence - Consequential losses (project delays, lost income) caused by machine breakdown ### Practical Steps Before Hiring 1. Check your existing public liability policy covers hired plant 2. Contact your insurer to add a hired-in plant endorsement if needed 3. Consider BuildHire's optional damage protection waiver 4. Ensure your site is safe before the machine arrives — remove obstacles, mark underground services, and brief any workers on the exclusion zone Call BuildHire on 1300 157 882 if you have questions about insurance requirements for your specific hire.