Business Strategies From Strive Insurance
Like many organizations, your business may rent or lease equipment from time to time. You may be planning a special event and need a tent to accommodate 250 people as part of a business activity. Or, perhaps you are renting a sound system for a concert, or leasing office equipment such as your copier. These kinds of events create added risk to the organization.
It is essential to have an understanding of who is responsible for the rented equipment and that your knowledge is consistent with the written agreement. Not all rental arrangements are the same. Some rental contracts will include property damage insurance as part of the rental fee. Other rental contracts may require the business to be responsible for all damage. And finally, some rental contracts may expect you to pay a deductible if there is damage. This can be very confusing especially if you are leasing or renting a high-value item.
There are many important things to remember when considering a rental agreement:
• Property located on or off-premises
• Property in transit
• Equipment held on display in showrooms or at other exhibitions
• Generally all risk of direct physical loss including earthquake
With our agency, you have the option to customize your coverage, limits, and deductibles. You may even select different deductibles for different coverages. The bottom line is when you are deciding to lease equipment, be certain you are aware of all costs involved in the transaction. Then, balance the costs against the benefits to make the appropriate choice for you and your organization.
As an Independent Insurance Agency we represent many insurance companies to fit your businesses dynamic needs. Whether you're a new business or a small business, we can help. Being an Independent Agent means we are not only your agent, but we are your insurance broker as well. We understand every business and industry is unique, so we will work with you to find the best business insurance coverage at the lowest rate. Contact us today for a free quote.
5/21/2018 07:22:51 pm
Thank you for pointing out the importance of understanding the agreement regarding maintenance and repairs when renting an equipment for a long time. I will share this with my parents who plan on getting a building constructed. After all, I am sure they know that we will be the one held liable if the equipment breaks while under our care. Thanks!
3/14/2019 05:08:15 pm
Thanks for the advice about renting equipment or leasing it instead of buying it. Paying attention to maintenance requirements when signing a long-term lease is good advice. If you are only renting for a few hours or a few days, I assume the company you choose will maintain the machines for you.
7/16/2020 04:37:19 pm
It was interesting to learn about how property damage should be a part of the rental fee or they might pay a deductible. I can understand how a business can be faster and more productive with better equipment. Renting the equipment they need from a professional could be really useful and allow them to be more effective and get the job done faster.
11/12/2020 10:42:22 pm
You made a good point when you mentioned understanding the agreement carefully in order to ensure that you are getting the best deal to rent construction equipment. It is very important to check what are the rules and regulations, as well as insurance in case there are any damages to it. I would like to think if a company needs to get some construction equipment, it should find a reliable supplier and make sure to understand the contract well.
2/23/2021 07:15:01 am
I need to get some cut branches to be pushed into a pile. It makes sense that getting the right equipment would be important! I'll be sure to rent one for this, since I shouldn't need it too much.
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