3 min read · Updated . Reviewed by James Rock (National Partnerships Director).
On this page 7
- What is a dry hire agreement?
- What do I need before handing over the keys?
- What should a dry hire agreement include?
- Do I need a dry hire agreement for a mate or subcontractor?
- Who is responsible for safety on dry hire?
- Does insurance cover a machine on dry hire?
- Get an insurance indication for your hire machine
What is a dry hire agreement?
It’s the contract between you and the hirer for a machine that goes out without your operator. It sets out what’s being hired, for how long, what it costs, who looks after it and who pays if something goes wrong. In the multi-year policy, dry hire means hiring out a machine or property to third parties without your employee as operator.
What do I need before handing over the keys?
The policy wording excludes theft by a hirer unless all three of these are in place before the hirer takes possession:
- A written agreement for hire between you and the hirer.
- A copy of a valid driver licence of the hirer, or of anyone the machine is entrusted to.
- A copy of a valid credit card of the hirer, or of anyone the machine is entrusted to.
Make those three steps part of your handover, every time. It’s easy to skip them for a regular customer, and that’s when it matters.
What should a dry hire agreement include?
| Section | What to cover |
|---|---|
| The parties | Your legal name and ABN, the hirer’s legal name and ABN, and who is authorised to sign. |
| The machine | Make, model, serial number, hour meter reading and attachments. |
| The term | Start and end dates, and what happens if it comes back late. |
| The rate | Hourly, daily or weekly rate, minimum hours, delivery and GST. |
| Condition | Photos at handover and return, and who signs them off. |
| Operators | Who may operate it, and the licences and training they must hold. |
| Use | Where it can be used, and what it can’t be used for. |
| Servicing | Daily checks, fuel, greasing and who to call about a fault. |
| Damage and theft | What the hirer pays, including your excess, and how quickly they must tell you. |
| Insurance | What the hirer must hold, and a certificate of currency before handover. |
| Security | Where it’s kept overnight, and any tracker or immobiliser. |
| Ending it | When you can take the machine back, and any dispute process. |
Do I need a dry hire agreement for a mate or subcontractor?
Yes. The wording applies to anyone the machine is entrusted to, not only paying customers. A one-page agreement is better than none.
Who is responsible for safety on dry hire?
Both of you can have duties. As the supplier you should hand over a safe machine with its manuals and service history, and the hirer must use it safely. Your state’s work health and safety regulator can explain the duties for plant.
Does insurance cover a machine on dry hire?
Through EquipCover, machines on dry hire can be covered when a contractual hire agreement is in place. Dry hire insurance has the details. Wet hire, where your operator goes with the machine, is a different arrangement. Wet hire vs dry hire explains it.
Get an insurance indication for your hire machine
Get your insurance indication in about 90 seconds.
Frequently asked questions
What is a dry hire agreement?
A written contract for hiring out a machine without your operator. It sets out the machine, the term, the rate, who looks after it and who pays for damage.
Is there a dry hire agreement template?
We don’t publish one, because it needs to suit your business and state. Use the checklist in this guide, and have a solicitor prepare or review your template.
What documents should I get from a hirer?
A signed hire agreement and copies of their driver licence and credit card, before they take the machine.
Is a hired-out machine insured?
Through EquipCover, dry hire can be covered when a contractual hire agreement is in place.
Who pays the excess on a dry hire claim?
Whoever your agreement says. Spell it out, or you may end up paying it.
Sources
- Policy wording from our specialist insurance partner: Multi-Year Plant & Equipment Insurance (6 October 2025)
- Local Government Association of SA Procurement: Plant & Equipment Hire (Wet & Dry Hire), contract LGAP 25082
General information only, not personal advice. Read the policy wording before you buy.
