This insurance is very vital if you rent out equipment to customers. It works to safeguard the items you rent out, which would include tools, equipment, and other inventory.
Note that this particular insurance can be purchased to cover any kind of equipment and will ensure that your business can avoid losses and downtime. This sort of coverage can insure pieces as large as excavators, along with the tools and inventory you rent out like bounce houses.
As an Equipment Rental Business, obtaining the appropriate insurance coverage will safeguard you if anything happens to your equipment, be it theft or a major accident. You can also find other alternatives that will help safeguard your business beyond just lost equipment.
When putting together your equipment rental insurance, note that the specific policies you choose will depend on the sort of equipment you rent out. Don’t also forget that there may as well be limits on the duration you can rent out equipment, because the longer the rental period, the higher the possibility of damage or loss.
Ensure to take into account your personal business factors when putting together your insurance coverage and business rental contract. Ideally, there are two primary types of equipment rental insurance coverage: covered property and replacement cost.
Covered property is primarily for things you rent out, while replacement cost coverage covers the equipment that will have to be replaced.
Best Insurance Policy for Equipment Rental Business
General Liability Insurance
Although insurance for equipment rental tends to come with the covered property and replacement cost coverage, it is still imperative to get general liability insurance to ensure you and your business are protected beyond rental-specific issues. Note that this insurance seeks to protect you from lawsuits clients institute against you.
The possibility of a lawsuit in this line of business is high and you wouldn’t want your business to suffer as a result. Have it in mind that General liability insurance will shield your business from lawsuits, damages, lost equipment, negligence, slander, errors and omissions, and contractual liability.
Product Liability Insurance
Truth be told, regardless of the item your business rents to clients, it will remain relatively safe as long as they are used as directed. Howbeit, there exists a good chance that a customer will get hurt or claim to have been injured from one of your rented items.
This is where this coverage comes into play. Product liability insurance will cover the expenses associated with your legal defense in such a situation.
Commercial Property Insurance
This is a very important insurance to have as an equipment rental business. You must have put in so much money to obtain the equipment you rent and if it were to get damaged or get lost in an unexpected event, like a fire, you will have a hard time replacing everything.
With this particular insurance, you can get help with replacement costs as long as the damage was caused by a covered event.
Workers’ Compensation Insurance
This is a must in most states in the United States as long as you have employees. Most places make it mandatory for businesses with employees to carry workers’ comp insurance. A workers’ comp policy caters to the medical expenses in the event your employee is injured performing job-related duties. They will also provide cover for lost wages if they cannot work while they recover.
Commercial Umbrella Insurance
While the general liability insurance policy you possess will be substantial enough to cover your business under most circumstances, have it in mind there is a possibility that its limits might be exceeded—like if you have to deal with a major loss like a civil lawsuit.
If your general liability insurance limits are exceeded, this umbrella policy would come into place and cushion the effects.
Factors That Determine the Cost of Insurance for Equipment Rental Business
You have to understand that the cost of your business insurance will vary depending on the sort of items you rent or even the policies you purchase. Here is a comprehensive breakdown.
1. Type of rental business
- The cost of insurance for camera rental is $41 a month or $492 a year for a $1 million general liability coverage
- For film equipment rental businesses, this will be around $46 a month or $552 a year for a $1 million general liability coverage
- The cost of insurance for rental businesses that rent production equipment is $51 a month or $612 a year for $1 million general liability insurance
- The cost of insurance for rental businesses that rent party equipment would be around $48 a month or $576 a year for $1 million general liability insurance
- Ski rentals pay $31 a month or $372 a year for equipment rental insurance having $1 million general liability insurance
- Tent rentals tend to pay around $42 a month or $504 a year for equipment rental business insurance having $1 million general liability insurance
- Bike rental businesses pay around $57 a month or $684 a year for $1 million general liability insurance
- Kayak rental businesses will have to pay about $44 a month or $528 a year for a $1 million general liability insurance
- The cost of insurance for rental businesses that rent gold equipment will be around $61 a month or $732 a year for a $1 million general liability insurance
- Trailer rentals businesses tend to pay around $85 a month or$1,020 a year for a $1 million general liability insurance
- Heavy equipment rental insurance will cost around $102 a month or $1,224 a year for a $1 million general liability insurance
2. Policies purchased
- General liability insurance for equipment rental businesses will cost around $47 a month or $564 a year for a $1 million coverage
- Commercial property insurance for these businesses will cost around $53 a month or $636 a year for a $1 million coverage
Equipment rental businesses tend to pay around $19 a month or $228 a year for inland marine insurance
Insurance Companies that Offer Equipment Rental Business Insurance
Note that this is one of the most recognizable insurance companies in the United States. They are known to offer workers’ compensation insurance, commercial property insurance, and liability policies you can bundle at an affordable price. Also, note that you choose to purchase stand-alone policies that CoverWallet offers.
This particular company provides top-of-the-class services to party rental businesses and other equipment rental businesses. Its basic leased rented equipment insurance comes with general liability, inland marine, business property, commercial auto, and excess liability coverages.
Insure My Equipment
Note that this company provides coverage for equipment rental businesses in partnership with Thimble. According to reviews, they only offer general liability coverage. Nevertheless, it’s available as short-term insurance and is comfortably perfect if you don’t need coverage for a long time.
The insurance policies they provide cover AV equipment rental businesses only. Note that it mainly includes general liability insurance, commercial property insurance, workers’ compensation, and commercial auto insurance. Same as with CoverWallet, this company allows policyholders to get COI for rental equipment.
Note that the less you have to worry about as an equipment rental business owner, the more you can focus on offering premium services to clients.
Having the right insurance coverage can ease your mind especially when considering how your equipment will fare in the hands of customers. Nevertheless, ensure to only work with an experienced and well-versed expert to ensure you have the right coverage.