4 min read · Updated . Reviewed by James Rock (National Partnerships Director).
On this page 9
- What is wet hire?
- What is dry hire?
- What’s the difference between wet hire and dry hire?
- Who is responsible for safety on wet hire and dry hire?
- How does dry hire affect your insurance?
- What should a dry hire agreement cover?
- Can you hire out financed equipment?
- Wet hire or dry hire: which suits your business?
- Hiring out your plant?
What is wet hire?
Wet hire means hiring out equipment with an operator. The owner supplies the machine and the person who runs it, and is paid for both. In earthmoving and civil work it’s the usual way a contractor puts an excavator and a driver on someone else’s job.
What is dry hire?
Dry hire means hiring out the equipment only. The hirer supplies the operator, and the machine is in their hands for the hire period. It’s common for access equipment, compaction gear, generators and smaller plant, and for owners who have more machines than operators.
Both are standard ways to buy plant. South Australian councils, for example, buy plant hire through a panel contract with separate dry hire and wet hire categories, covering heavy plant such as loaders, excavators and rollers as well as smaller plant like saws and vibrating plates.
What’s the difference between wet hire and dry hire?
| Feature | Wet hire | Dry hire |
|---|---|---|
| What’s supplied | The machine and an operator | The machine only |
| Who operates it | The owner’s operator | The hirer’s people |
| Who controls day-to-day use | Mostly the owner, through their operator | Mostly the hirer |
| Where the risk sits | Largely with the owner’s business and operator | Shared, and set out in the hire agreement |
| What the owner should check | That cover applies while the operator works on another site | That cover applies while the machine is out on hire, and what the agreement says |
Who is responsible for safety on wet hire and dry hire?
Plant is machinery, equipment, appliances and tools used at work, and a business has a duty to eliminate or minimise risks from plant so far as is reasonably practicable. On wet hire the owner’s operator runs the machine. On dry hire the hirer’s people do, so check that operators are trained and hold any licence the machine requires before it leaves your yard.
How does dry hire affect your insurance?
On dry hire your machine is out of your hands and in someone else’s. Through EquipCover, dry hire is covered when a contractual hire agreement is in place. Read the policy wording for exactly what dry hire cover includes before you hire a machine out, and keep the agreement on file.
What should a dry hire agreement cover?
- Who the parties are, with ABNs.
- The machine, its serial number, attachments and condition at handover, with photos and hour-meter readings.
- The hire period and where the machine will be used.
- Who supplies the operator, and that they’re trained and licensed where required.
- Who is responsible for fuel, servicing, damage, loss and theft during the hire.
- Insurance: what each party holds, and certificates of currency exchanged.
- The condition the machine must be returned in.
Can you hire out financed equipment?
Check your finance agreement first. The lender’s security is the machine, and some agreements limit how it can be used or who can use it. If hiring out is allowed, make sure your insurance covers the machine while it’s on hire.
Wet hire or dry hire: which suits your business?
| Feature | Wet hire suits | Dry hire suits |
|---|---|---|
| Machines | Large or specialised plant that needs an experienced operator | Simpler machines that hirers can run themselves |
| Your team | Owners with operators available | Owners with more machines than operators |
| Control | Keeping the machine in your operator’s hands | Accepting the hirer runs it, under a written agreement |
Dry hire insurance for plant and equipment explains the cover in more detail, and our dry hire agreement checklist lists what to put in writing. To work out what to charge, use the machine hourly rate calculator.
Hiring out your plant?
Get your insurance indication in about 90 seconds.
Frequently asked questions
What is the difference between wet hire and dry hire?
Wet hire means the equipment is hired out with an operator. Dry hire means the equipment only, and the hirer supplies the operator.
Is dry hire covered by EquipCover’s insurance partner?
Yes, when a contractual hire agreement is in place. The policy wording sets out the specific dry hire cover.
Do I need a written hire agreement?
For dry hire cover, yes: cover applies when a contractual hire agreement is in place.
Who supplies the operator on dry hire?
The hirer. Check their operators are trained and licensed where the machine requires it.
Can I dry hire a machine that is under finance?
Check your finance agreement first, as some limit how the financed machine can be used.
Sources
- Local Government Association of SA Procurement: Plant & Equipment Hire (Wet & Dry Hire), contract LGAP 25082
- Safe Work Australia: Plant in agriculture
- Product information and approved item list from our specialist insurance partner (August 2026)
General information only, not personal advice. Read the policy wording before you buy.
