2007Legal / Business Practices forum
Equipment insurance coverage gaps for rented or loaned gear
19 years old. Gear and prices may have changed since.
DisputedParticipants disagreed and reached no conclusion. Read the findings as positions, not as an answer.
What the thread found
- Standard equipment insurance policies typically do not cover gear that is out of your physical care and control, such as rented or loaned equipment.
- Obtaining a certificate of insurance from the renter does not guarantee coverage if the renter disappears with the equipment, as insurers may deny the claim by arguing insufficient due diligence on your part.
- To protect yourself when renting out equipment, require the renter to list your company as both additionally insured and loss payee on their certificate so any claim payment goes directly to you.
- If you rent equipment from another party, miscellaneous rented equipment coverage on your own policy can protect against theft, loss, or damage caused by the renter.
- Equipment remains covered under your personal policy if you personally use it on a job, even if you bill the client for the gear rental.
- A police report documenting theft is necessary for an insurance claim to be processed when rented equipment goes missing.
Depends on
- The thread discusses primarily one insurance provider's policies without confirming whether all insurers follow identical practices.
- The specific circumstances under which an insurer will deny a claim for rented equipment theft versus damage remain unclear and potentially disputed.
- The discussion does not resolve definitively whether a renter's theft coverage would apply if the original owner's claim is denied.
- Recommendations about credit card deposits and specific policy deductibles are based on individual anecdotes rather than systematic research.