Construction companies need to protect their equipment. Whether you rent or own your construction equipment and machinery, insurance can help mitigate costs and decrease legal liability on job sites for better financial security and increased trust with partners. While renting offers many benefits to construction companies, you can help keep your business's assets safe with construction equipment rental insurance.
Jump to a section:
Construction equipment rental insurance is a protection policy that covers the cost of damages and replacements required for rentals. Renting can offer construction companies many benefits, like access to newer models and increased functionality, but the risk of damages from sites leaves teams financially vulnerable. This insurance policy type helps decrease financial liability in the event of certain accidents or theft, allowing companies to only pay their determined deductible.
This insurance is often very flexible. When searching policies, you can find temporary, short-term options or permanent coverage. Varying lengths can help match your company's rental history and frequency, ensuring you always have protection throughout your entire project timeline.
Construction companies interested in equipment rental insurance can purchase it from different providers depending on their needs. Many property insurance providers offer equipment rental insurance plans to add to existing plans, allowing companies with this policy to increase their coverage easily. Investing in construction equipment rental insurance with your current provider can simplify policy management and payments. When you need to look up information regarding your coverage or deductibles, you'll know where to look.
For companies without property insurance or looking for a more short-term rental plan, most rental organizations offer equipment rental insurance policies with their rental agreements. This offer will last the entirety of your rental period, ensuring complete coverage over projects. It is also great for companies who rent more infrequently but still want financial and liability protection when they do.
Equipment rental insurance covers many costs and situations. Most equipment rental insurance policies cover the following:
Equipment rental insurance aims to provide comprehensive financial and asset protection. When accidents with rental equipment damage or harm your facilities or other machinery, your policy can help you cover repair costs. Because each provider and plan offers unique protection, reading through coverage can ensure you get the level of protection you need.
While each provider covers different situations, they omit similar factors from coverage. You can expect equipment rental insurance not to cover costs related to accidents caused by equipment misuse or abuse. For example, equipment damage from overloading past the model's limits can qualify as misuse, leaving companies liable for covering costs for repairs and part replacements. Failing to store or protect equipment during the rental period can qualify as abuse, making renters responsible for related damage and theft.
Construction equipment rental costs will vary depending on the provider and the included coverage. Many rental companies calculate their rental deductibles based on the equipment's value, the equipment's age and the type of construction work. Companies and providers have various limits, so exploring different options can help you find the choice that matches your construction budget.
Construction teams have many options when choosing protection plans, including general liability insurance. Understanding the difference can help your construction business find the option that can offer the best protection for your needs.
A general liability insurance plan will cover the costs of damages and repairs caused by rented and owned equipment. This insurance policy is essential for protecting your properties, assets and finances when working on projects. However, general liability insurance will not include damages to your equipment or necessary repairs in the event of an accident.
When you want comprehensive protection that covers your property and equipment, you might consider investing in general liability and construction rental equipment insurance policies.
Damage waivers are another option to protect your finances, but they differ from construction equipment rental insurance policies. Like many rental insurance plans, construction equipment rental companies will offer these waivers with rental contracts as a protection method. A damage waiver will set a determined amount or percentage in the event of equipment damage or theft, limiting how much money you are financially liable for.
Most rental companies will provide different damage waiver limits depending on the equipment you rent. They might take a percentage of the total equipment worth to help them cover repairs and replacements while reducing your financial burden. However, you should expect a higher damage waiver limit if renting more expensive equipment.
A damage waiver can be an excellent option for companies with a limited budget, but construction equipment rental insurance offers more comprehensive financial protection, and insurance coverage will typically come from the provider rather than your company.
When renting from The Cat® Rental Store, dealers offer Rental Equipment Protection (REP). REP lasts throughout your rental timeline, and it's separate from your equipment coverage. This straightforward, all-risk policy means loss or damage is covered, unless it's listed as excluded.
When you choose REP with your local Cat dealer, you'll receive extensive coverage that protects your business from various scenarios. REP will cover equipment damage or loss from:
With REP, you'll receive comprehensive coverage over multiple situations. Your business can better protect itself from unforeseeable issues, so you can continue offering your clients the best construction services.
REP can protect your construction company from many threats. In some situations, your company might be liable and have to cover the costs of damages and equipment loss. Some exclusions under REP can include:
Understanding what REP includes and excludes can allow construction companies to identify what kind of protection they need and whether this option is right for them.
When you sign up for REP, you will pay a deductible for any covered repairs and replacements. Your Cat dealer will determine your REP deductible based on your rental's value.
A Certificate of Insurance (COI) proves that someone holds an insurance policy. Insurance providers will issue COIs to policyholders, outlining essential information about your insurance coverage. In construction and equipment rentals, COIs can ensure your rental dealer that you have protection from common risks and won't be a liability. Some dealers might require a COI before renting if you don't want to purchase their provided equipment rental insurance or add-ons.
COIs might also be called a certificate of liability or proof of insurance.
A COI will include several pieces of information to provide to partners, like your rental dealers. Some data your insurance provider will list on a COI include:
Whether you are receiving your COI or checking a potential business partner's, knowing what should be on a COI can ensure it is valid and legitimate. Insurance providers should always issue COIs that serve as authentic proof of insurance.
COIs are crucial documents for construction businesses. They help you build trust with others in your industry. Some benefits and purposes of obtaining a COI include:
COIs protect your construction business on several sides. Whether you are trying to secure bids or reduce financial liability, a COI can offer some assurance in this industry. When renting construction equipment, a COI can allow you to work with dealers.
When you need a COI, you can request one by contacting your insurance provider. Your provider will send you a version that complies with their policy and state legislation. After receiving your COI, you should check that all information is correct and nothing is missing.
Insurance for rental equipment can protect your business from the costs of repairs and replacements when the unexpected occurs on job sites. While you can add a renter insurance policy through another plan, using REP from your local Cat dealer can offer you comprehensive coverage and meet your needs. REP can function as a stand-alone coverage option or additional protection to existing plans.
The Cat Rental Store has locations worldwide, so you can rent your construction equipment from a dealer close to home. Local dealers make transporting and storing your construction rentals easy, and they'll understand your location's unique needs and requirements for better care. The Cat Rental Store dealers offer a wide selection of construction equipment and attachment rentals for increased functionality.
Find a Cat dealer near you today for quality rental equipment to boost your job site operations.Find The Cat Rental Store Near You