Insurance Coverage To Look For When Renting Construction Equipment
06 Oct 2017 in General
Major home renovation work may require special equipment such as excavators, cranes, blowers, and generators. For homeowners and contractors, it is more practical to source these machines from a rental company for two reasons:
- Construction equipment will only be used as needed for a specific project
- Maintenance and storage costs can be expensive
If you are looking for an equipment rental company, you should also consider getting insurance coverage. Renting construction equipment exposes you to liability risk so you must protect yourself with proper insurance.
Your project may take several weeks to a few months. During this time, you will be responsible for all rental equipment in your property. Equipment insurance coverage can protect you against damages, theft, or loss. It’s a small price to pay in case a problem arises down the line.
What is a Rental Equipment Insurance Policy?
An equipment insurance policy covers construction equipment, tools, and other inventory that is offered by an equipment rental company. Insurance coverage typically includes repair costs in case the equipment breaks down, and cleanup expenses in case an accident occurs. All equipment must be insured, whether they are stored at the business headquarters or transported to a construction site.
What Does Equipment Insurance Cover?
Renting out construction equipment is just like any other rental – it is important to protect your investment against natural and man-made damage. Most policies will cover equipment breakdown, equipment that is lost by the customer, and equipment that is destroyed by bad weather. They might also pay for the cleanup cost of a pollution or contamination accident.
Equipment insurance should cover any replacement cost for damaged, destroyed, or lost construction equipment. These machines are very expensive. As such, it is essential to acquire insurance for cases when you need to buy new equipment.
How Much Coverage Does Equipment Insurance Provide?
Equipment insurance policies make it easier for business owners to repair or replace a piece of construction equipment. You’ll be able to find insurance that will pay up to $10,000 for a quick repair or temporary replacement of covered equipment. Some equipment insurance policies offer coverage up to $25,000.
Let’s say you are renting a bulldozer to redesign your lawn. By the end of your rental agreement, the machine looks like it’s been through a minefield. It is your responsibility to get it back into shape before you return it to the equipment rental company. Equipment insurance can help you cover all of the extra expenses.
Written by Lindsey Rentals. Lindsey Rentals offers the best equipment rentals in Columbia, MO.