Finding the Right Insurance Policy for Your Rental Equipment
By: Lauren Castillo, Assistant Vice President at Athos Insurance
Published on: 1/19/2021 7:45:00 AM
When you’re renting equipment, insurance is crucial. You don’t want to be responsible for any damages or losses to equipment that you don’t even own. But navigating the different insurance policies and trying to figure out what insurance plan you need can get very confusing.
Rental houses always require renters to purchase Inland Marine Insurance. This is the policy that will cover the rented gear for accidental damages and theft so it’s really important to have this coverage
Many rental houses also require General Liability Coverage in addition to Equipment Rental Insurance. General Liability covers you for bodily injuries to third-parties.
For example, if you rent a light from a rental house and it falls and hits someone who is not part of the production crew, that person can sue everyone involved in the project for their injuries (including the rental house, since technically, they are deemed the “owner” of the equipment.)
Remember, you’re just the renter. This is why many rental houses will require General Liability Coverage in addition to Equipment Insurance.
Here are a couple more important things to remember when you are shopping for equipment rental insurance:
Look out for common exclusions like theft from an unattended or unlocked vehicle, water damage, transit, worldwide coverage if you will be traveling outside the US.
If you’re renting equipment from multiple rental houses or equipment owners, make sure to add the total replacement cost value of all the gear. This should be the minimum insurance limit you purchase. You’re taking a big risk if you don’t insure everything because if you have a total loss like a fire or a theft where everything is stolen you will be personally responsible for the difference. You may think this won’t happen to you, but we’ve seen this happen before.
Business personal property does not cover rented production equipment.
Always make sure you have a rental contract in place to legitimize the rental. Claims may get denied if you do not have proof of a rental contract.
Always be sure the name on your rental contract matches the name on your insurance policy.
If you’re renting any vehicles in addition to the equipment, it’s important to note that the rented vehicle is not considered equipment, so you may also need to buy a Non-owned Hired Auto Policy as well.
There are so many factors to keep in mind and so many scenarios that could make you liable for damages and theft if you don’t have the right insurance. Every rental house has their own insurance requirements, so we highly recommend that you ask all rental houses you rent from for their insurance requirements to ensure your rented equipment is covered properly.
Fortunately, we get that rental insurance may be confusing, which is why we are always here to help answer any questions you might have! You can call us directly at 626-716-9800 or contact our always friendly customer service team.