Equipment use insurance

[RobS01]

Hi,

I have a question about what insurance should be in place in a particular situation.

If my company buys a piece of equipment that will be used by another company making a product for my company, what do I need to check, insurance-wise, before buying said piece of equipment?

If I own the equipment that they use on their premises, who’s responsible in case of an accident?

Thanks.

 

[Frank the Insurance guy]

Hi @RobS01 ,

Sorry but the answer is "it depends" - who is responsible for the accident?

It could be the company you have given the equipment to (eg. employee is injured due to a Health & Safety Issue whilst using the equipment) - they would need Employers Liability cover for this. They should also have Public Liability in case they injure someone who is not an employee!

It could be you - As you have provided them with the equipment, you may be legally liable if an injury or damage is caused by a fault in the equipment (in this case, you would be able to pursue your equipment supplier - but make sure you retain all rights of recourse against them!). - This would be products liability.

what do I need to check, insurance-wise, before buying said piece of equipment?

Without knowing what the product is, I would suggest Products Liability Insurance is the key one.

 

[WaveJumper]

Sounds like an extremely tricky scenario, your equipment in someone else’s premises, how are you going to “police it” ie regarding H&S checks before use each day, training of those using the equipment etc etc sounds like a bit of a nightmare to me is there any reason why this company does not buy and own the machinery to supply you with what you require.

 

[Socio South West]

This is one of those 'devil is in the detail' questions, and best protected by an arrangement in writing.

Question to all - would a lease be more appropriate in this case?

 

[RobS01]

Hi @RobS01 ,

Sorry but the answer is "it depends" - who is responsible for the accident?

It could be the company you have given the equipment to (eg. employee is injured due to a Health & Safety Issue whilst using the equipment) - they would need Employers Liability cover for this. They should also have Public Liability in case they injure someone who is not an employee!

It could be you - As you have provided them with the equipment, you may be legally liable if an injury or damage is caused by a fault in the equipment (in this case, you would be able to pursue your equipment supplier - but make sure you retain all rights of recourse against them!). - This would be products liability.



Without knowing what the product is, I would suggest Products Liability Insurance is the key one.

Thanks Frank. Will have to discuss it with the other company.

 

[RobS01]

Sounds like an extremely tricky scenario, your equipment in someone else’s premises, how are you going to “police it” ie regarding H&S checks before use each day, training of those using the equipment etc etc sounds like a bit of a nightmare to me is there any reason why this company does not buy and own the machinery to supply you with what you require.

Are daily H&S checks required?

 

[RobS01]

This is one of those 'devil is in the detail' questions, and best protected by an arrangement in writing.

Question to all - would a lease be more appropriate in this case?

Interesting, who would do the leasing?

 

[WaveJumper]

Are daily H&S checks required?

You tell me, what sort of equipment are purchasing to let someone use, basically unsupervised by the owner, you. How are you going to know there's no fault on the equipment, malfunction, person using equipment is suitably trained etc etc