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If you own a business that rents out various types of equipment, you may want to explore the insurances available. This can be any equipment, including heavy machinery, gardening tools, party supplies or audio visual equipment; if you have invested heavily in the equipment you rent, you want to ensure protection.
You don’t just want to protect your gear, you also need to think about the liability risks associated with renting it. Read on and refer to Benzinga’s opinion on equipment rental insurance.
Compare equipment rental insurance
Companies like Lemonade, Progressive and Allstate offer quality rental equipment insurance to their customers. Lemonade is best known for allowing customers to customize their policies, pay claims quickly, and provide quotes within days. Property, liability and loss of use coverage options are available. Renter’s Insurance is rated 4.9 out of 5 stars based on over 30,000 reviews, and there’s no hassle or paperwork. Expect to be paid in three minutes.
Tiered Rental Equipment Insurance costs as little as $5 per month when combined with auto insurance. It provides financial protection for you and your equipment. You can get a quote and choose the policy that’s right for you.
Allstate’s policy protects you and your property. You’re entitled to a free quote anytime, and if something gets stolen, Allstate has you covered.
Rental Equipment Insurance for Businesses
For some businesses, such as contractor equipment rental businesses, the services consist of providing heavy equipment to customers who do not need the tools or items frequently enough to purchase them. Hot items like bulldozers, excavators, or cranes fall into this category. In some cases, the equipment may or may not be leased with an operator, depending on the company.
Equipment rental options include short or long term leases. Delivery and pick-up services are sometimes also offered. Most of the time, payments can be made at the time of rental for items that are only needed for a short time or even sporadically during the term of the lease. Only where the lease provides otherwise is the rental company responsible for maintenance and major repairs.
Owning a business that rents equipment comes with some serious perils. If a customer is injured while using the equipment you have rented to them, you may be liable for any resulting damages, including medical expenses and costs related to loss of property.
This is why equipment rental insurance and business income coverage are necessary. It protects you and your business from legal action. All insurance agencies are different, so researching and gathering information and quotes is key to finding the best-fit policy.
Property damage: Under this type of insurance, the costs of damage to your property due to specific perils such as fire, vandalism and theft are covered. In some cases, the contents of your business building may also be protected.
Home Navy: For commercial property and equipment rental insurance to provide coverage, the incident must have occurred on your business property. To get this coverage, you need to invest in inland marine insurance. This type of policy covers movable property that is in transit and stored at another location outside of your property. A perfect example is if your construction equipment is damaged, stolen, or vandalized while not on your property, inland marine insurance covers the cost of repairs or replacement.
General Liability and Umbrella: This insurance covers the costs of bodily and material damage to third parties. If a customer takes legal action against you and claims that your equipment injured them or damaged their property, liability insurance, legal fees, medical expenses and repair costs are covered by general policies and umbrella.
Loss of use coverage and replacement coverage: Under this type of insurance, the expenses you incur due to damage to your rental equipment are covered. Be sure to research what equipment qualifies for this form of protection. Only certain costs are covered under loss of use. This type of insurance also, for the most part, has a start and end date, which means that it is only a temporary solution.
Cybersecurity coverage: As crazy as it sounds, if the device is electronic or can be hacked, you could be a victim of attacks, hacks, or even Distributed Denial of Service (DDoS) attacks. Every business faces cyber risk, regardless of size, although larger businesses are more vulnerable to hacking. While the single standard is rarely met for most companies, cyber policies do contain a combination of specific protection elements.
Rental equipment insurance for consumers
You can offer rental insurance to customers through your carrier, so they are protected if they damage your equipment. With rental equipment insurance, you can mitigate losses and contribute to overall business growth, despite any claims or lawsuits that may arise.
Protect yourself, your business and your customer by investing in the right type of rental equipment insurance.
Rental Equipment Insurance — The End Result
Benzinga encourages you to work with a sales agent when choosing rental equipment insurance. An agent is knowledgeable in understanding your unique needs and can recommend the level and type of protection that is right for you and your business. An agent can explain the risks your customers face when renting equipment from you and help you determine the type of rental equipment insurance and level of protection your business needs.
Frequently Asked Questions
What type of insurance do I need to rent equipment?
General liability insurance provides coverage against claims for bodily or personal injury, advertising errors, and property damage. General liability insurance also helps pay for legal expenses such as attorney fees and court settlements.
Every business needs general liability insurance. A single claim or lawsuit could bankrupt your business. This type of policy might also be necessary to win business. Many companies and government agencies refuse to do business with a company unless they can prove they have a general liability policy.
Most states require you to have workers’ compensation and unemployment insurance if you own and operate a business. Some states require you to be insured even if you are the only employee.
Insurance agents can help you check applicable state laws so your business stays compliant with rules and regulations.
What insurance do I need for a rental business?
A multitude of insurance options are available for a rental business. All companies, regardless of their sector of activity, face risks that must be covered by insurance. The most common and comprehensive policy that business owners invest in is general liability insurance. Risks associated with a rental business include:
- Bodily injuries
- Property damage
- Medical payments
- Legal defense and judgment
- Personal and advertising damage
Businesses are not legally required to carry general liability insurance, but choosing to operate without it is risky. If your business is sued, you could end up paying hundreds or thousands of dollars in fees. Make sure you have sufficient liability insurance to help offset damages.
Other insurance options to consider for a rental business are construction, earthquake, flood, leasehold interest, real estate liability, computer fraud, customers, goods in transit, motor vehicle liability and physical damage.
Benzinga has developed a specific methodology to classify business insurance. We’ve prioritized carriers based on coverage options, types of businesses served, customer service experience, and how quickly and easily you can get insured, including using online tools . We’ve also included professional insurance quote aggregators in the listings to make it easier and better to compare quotes and policy options. To see a full breakdown of our methodology, please visit our Business Insurance Methodology page.
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