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Question for people who rent equipment

Discussion in 'Heavy Equipment' started by Little Jon, Dec 12, 2008.

  1. Little Jon

    Little Jon Senior Member
    from Buffalo
    Messages: 139

    Ok, so I dont own my own business, so I've never been involved with the details of renting equipment. However, as time goes on and I see how stupid some people are with things (my current company included), Im more and more convinced that I can find my own niche in this industry and strike out on my own. Right now Im just in the information phase, to see if its realy something I can tackle.

    One question that keeps comming up in my head is equipment rentals...I know the company I work for has to pay insurence on the loader that they own. However, if one rents a piece of equipment, like a loader, do they need to pay insurence on that machine, or is this included in the monthly rental fee and the rental co covers that?

    I know about general liability insurence and all that so I dont need a spiel on that, im just talking insurence for if like the thing gets stolen or something.
     
  2. cat320

    cat320 2000 Club Member
    Messages: 2,223

    You have to have insurance binder (not sure if i'm wording it right) basicly you have to list that rental co Just go to your agent and have them send over your commercial coverage to them and list them on the sheet your agent will know what to do. you do not have to indivdually insure if it was your own because it's not. I never had a long term lease or rental just 2-3 day rental so it might be differnt long term .
     
  3. snow game

    snow game Senior Member
    from RI
    Messages: 255

    Usually if its a small Skid (I rent them with Hammers so I don't crack my own in half) or just a quick rental they don't ask me for it. But when we are renting excavators and loaders for a month or so they do ask for it.
     
  4. tuney443

    tuney443 PlowSite.com Addict
    Messages: 1,847

    It's called a damage waiver.Some rental companies will let you opt out of it if you can prove to them that your ins. co. has you covered on rental iron if there's an oopsy or a theft.If you don't have that coverage with your carrier,you had better pay for that damage waiver fee.It's relatively cheap--just pass it on to the client. Simple.
     
  5. Mike W

    Mike W Junior Member
    Messages: 22

    At the place I work for, the damage waiver only covers damage to the equipment. Not theft, fire, getting stuck. So make sure you check to see what theirs covers. May be less than you think...
     
  6. Jdeerekid

    Jdeerekid Member
    Messages: 44

    The place I used to work for had to rent a loader for a couple months when ares went down. We had to list the loader on hour insurance for the replacement price of the loader. I cant remember what type of ins. it was, our ins. company took car of it. Just need to have all the info (vmodel#, vin# and such) of the loader for the ins company.
     
  7. SGC08

    SGC08 Member
    Messages: 71

    Most rental places have the damage waiver option but as was previously stated, this will not cover it if the equipment is stolen, etc. If you plan to rent equipment often, it is cheaper to carry equipment rental on your own policy than it is to pay the waiver.

    I can rent up to $100,000 of equipment at a time on my insurance policy. I just have the rental place call my insurance carrier and give them the serial numbers of the equipment I am going to rent so they can add it to my policy for the dration it is being rented. Some rental companies just want a certificate of insurance showing you have rental coverage. If I rent more than $100,000 at a time, my insurance carrier will add the equipment and charge me a small price.

    The damage waiver is usually a percentage of the rental price, 10%-20%. The rented equipment insurance on my policy is only a few hundred dollars for the year.

    Also, some rental places, usually equipment dealers that also rent, will not rent to anyone that doesn't have rented equipment insurance on their own policy. They want to eliminate home owners that are going to destroy their equipment. In my area, I can rent from the equipment dealers for much cheaper than the rental house but I have to insure the equipment. I get brand new machinery for a cheaper price.

    It all comes down to how often you are going to rent.