A lot of people don’t understand the policies that insure them, and this is particularly true of commercial enterprises. Business owners often get commercial insurance and assume that everything in their business is covered. While this is true of tools and buildings that the company owns, this is not true for rented equipment–that requires a different type of coverage.
The equipment that contractors use, items such as loaders, backhoes and bulldozers, is usually very expensive–often too expensive to buy. Unfortunately, when you rent this kind of equipment, you need a special type of coverage called a contractor’s equipment policy. This type of policy is designed to cover big, expensive equipment, but smaller hand tools can be grouped together and included in a policy, as well. Just the policy is not always enough to insure rented equipment, however–you will sometimes need to include a rider called a "rented and leased equipment rider." Sometimes it is included automatically with the policy, but sometimes you have to ask for it.
You may also have the option to purchase insurance directly from the rental company on a per-item basis. The advantage is that the coverage is tailored to the equipment you’re using for the exact time that you’re using, but the disadvantage is that the price is not always competitive with other insurers.
Renting and insuring contractors equipment can be complicated, but it is very important to make sure that the equipment is insured because it is so expensive to repair or replace. Before making a decision, you should contact us. As your independent agent, we can make sure that your rented equipment is properly covered and that you are getting the best possible rate.