Equipment Rental Reimbursement

What is equipment rental reimbursement and why would I want it? Equipment Rental Reimbursement is coverage for equipment that you cannot use due to a claim for damage or loss. So the time lost due to failing to have the necessary fuel or tools to keep the equipment working is not considered a claim. It has to be some type of direct damage.

An example would be a contractor who runs an excavating business. It would be usual for the contractor to have equipment such as a bobcat or a skidsteer that is necessary to his work. This contractor goes to start his day on the jobsite and finds the unit has been vandalized during the night. This is not good. To get paid the work has to be done so the damaged item needs to get repaired quickly. Often the necessary repairs will not happen overnight. In the case of a claim for theft it will take some time to get delivery of new equipment.

There is usually a waiting period on the insurance but once that has passed then part of the rental fees can be claimed on the insurance. This would be part of the claim for the repair or replacement of the damaged or destroyed equipment.

If your work requires that you provide equipment to perform your job then you need to consider equipment rental reimbursement coverage. Consider the likelihood of something happening. If your jobsite is open to the public then there could be a higher chance of vandalism. At any time there could be an overturn or impact with other structures or equipment. If this does happen, how will it affect you? Is your equipment specialized or readily available? What is the cost to rent a unit and have it delivered to your site?

Your safety plan will help to prevent accidents. The accidents that you cannot control nor avoid will need insurance coverage. Talk to your broker or agent about your specific needs. Tailor-make your insurance to best fit you. Take control.