Insurance on Rental Equipment

[Haoleguy]

This past week I looked into renting a 6 ton excavator. Before I started into this I contacted my insurance company and asked if there was any coverage for the rental under my home owners insurance. The answer was no but my agent suggested that rental companies do offer insurance coverage. This was not the case when I visited the rental agency. For those who rent construction equipment and do not run a contractors business how do you get the insurance coverage?

 

[Scooby074]

I assume your talking about machine damage coverage and not liability?

Maybe try another rental place?

Homeowners or even rental insurance wont cover liability.

If your renting through a machinery dealer, theyre likely not set up for coverage as they usually only rent to businesses who already have coverage, especially with larger machines, or longer term leases.

I know that United Rentals and other rental places that cater to contractors and homeowners offer renters coverage so maybe try one of them?

Cat rentals offers coverage on their excavators and skids. I called to get a quote on a rental and it was listed on the sheet. Something like 12% of the daily rental / day IIRC.

http://www.catrents.ca/Services/Business_Services/Rental_Equipment_Coverage.aspx

 

[rj's barn]

Your auto/homeowners insurer should offer some sort of "operators" policy that covers anything you sit in and drive. Ask em if that covers industrial heavy equipment. Chances are slim, but it never hurts to ask.

 

[Robert_in_NY]

When we rent equipment we just have the rental yard insure it. It cost 9% of the rental fee but to try and put that piece of equipment on our own business insurance is a hassle and will cost a little more in the end so it makes sense for us to pay the rental yard to insure it.

 

[Haoleguy]

All - Thanks for the quick replies. Based on your feedback I ranged out a bit more to check other regional rental companies and found the offering of damage insurance with the rental. I was being a bit myopic and looking for Kubota rentals as a prelude to a future purchase. I must admit that my view is opening towards CAT and Deere/Hitachi. Both of these dealers have a regional presence in CT/RI.

 

[conner33]

Opps, Just read your reply, good all worked out.

"You might want to reach out to other rental places that offer the insurance."

 

[Pops15]

Rental agencies already have insurance on their equipment as well as liability insurance. That doesn't get the customer off the hook though since the insurance carrier will try to recoup its costs from the rental customer if they can.
If you're using the equipment at home your homeowners policy will cover you but probably not the equipment itself.
When you're hauling rental equipment your personal auto coverage should cover you. Or as my insurance agent put it...."with personal auto coverage anything you pull is covered for liability, but if the vehicle is covered on a commercial policy anything you pull needs to be listed on your policy". So if you're using your company truck to pull a boat the boat isn't covered. I specifically asked about rental equipment. He said there shouldn't be a problem if I rented a tractor for a day, but if it was a long term lease (30 days or more???) I should add it to my policy or buy the insurance from the rental yard. This probably varies by state but thats how it is in IL (according to my agent).

 

[GreatWhitehunter]

Since your in Ct I can give you first hand advice. You can rent from Sunbelt rentals and they automatically add the insurance into the rental. You can also call WI Clark they will treat you good also. But they tend to rent longer terms than sunbelt. I just rented a 6ton mini with hammer from sunbelt for $500 a day. My contractors policy covers me for anything I rent so all I needed to do was provide proof to sunbelt so I didn't have to pay for there coverage. Look up both on google. PM me if you have any questions.

Matt

 

[Ken45101]

Rental agencies already have insurance on their equipment as well as liability insurance.

Not necessarily! When I rented a Kubota excavator the dealer wanted a fax from my insurance agent stating that my farm policy covered the rental.

Ken

 

[ultrarunner]

A local Tree Equipment Company has great rates on Chippers... all the way up to the crane size units...

I called them up to reserve a Vermeer for Friday AM pick-up... when I arrived I was prevented from renting it because I don't have a contractors Liability Policy...

I'm a Property Owner so why would I have a contractor's policy?