A well thought out insurance program will help to protect your business from the financial consequences that result from stolen or damaged property as well as defending lawsuits. If you are interested in obtaining a premium quotation, please complete our Equipment Rental House Application.

There are many coverage variables available to you which can have an impact on the scope of the coverage being offered, as well as on the policy premium.

Click on the Scope of Coverages tab to learn more about these important options.

When renting equipment to others, it is important that a contract is executed between the rental house (lessor) and the customer (lessee). Furthermore, it is the responsibility of the lessor to ensure that the lessee is in full compliance with all of the terms of the insurance section of the Rental Agreement. The insurance section of the Rental Agreement typically addresses the types and amounts of insurance coverage that the lessee is required to carry.

Click on the Terms & Conditions tab to find out more about the important terms and conditions that should be included in every Rental Agreement.

The following list provides an introduction to some of the valuable coverages that are available for an Equipment Rental Company.

Property

Accounts Receivable
Boiler & Machinery Coverage
Buildings (Real Property)
Business Interruption
Business Personal Property Owned By You (Contents)
Business Personal Property Owned By Others (Contents) for which you may be legally liable
Earthquake
Electronic Data Processing Equipment
Equipment (Owned and/or Rented Equipment)
Extra Expense
Flood
Improvements & Betterments
Leasehold Interest
Loss of Utilities
Ocean Cargo
Off Premises Power Failure
Ordinance or Law
Plate Glass
Signs, Canopies & Awnings
Valuable Papers

Commercial General Liability

Premises and Operations
Products and Completed Operations
Personal and Advertising Injury
Damage to Rented Premises
Employee Benefits Liability
Contractual Liability

Business Automobile

Non-Owned & Hired Automobile coverage including:

  • Non-Owned & Hired Automobile Liability
  • Hired Automobile Physical Damage

Owned Automobile coverage including:

  • Business Automobile Liability
  • Statutory Personal Injury Protection
  • Additional Personal Injury Protection
  • Uninsured Motorist
  • Underinsured Motorist
  • Comprehensive
  • Collision
  • Rental Reimbursement
  • Towing & Labor
  • Drive Other Car Coverage (DOC)

Employment Coverages

Workers Compensation & Employers Liability
U.S. Longshoremen & Harbor Workers Act
Jones Act
Voluntary Compensation
Statutory Disability Benefit Income Coverage (Mandatory in NY, CA, NJ, RI, HI & Puerto Rico)

Crime Insurance

Employee Dishonesty including:

  • Blanket coverage for all employees
  • Blanket coverage for a specific class of employee (Ex: Accounting Personnel)
  • ERISA compliance for pension plans
  • Monies & Securities
  • Depositor's Forgery

Liability Protection

Directors & Officers Liability
Employment Practices Liability
Errors & Omissions Liability
Fiduciary Liability
Intellectual Property
Non-Owned Aviation Liability
Non-Owned & Hired Watercraft Liability
Railroad Protective Liability
Umbrella Liability
Foreign Commercial General Liability
Foreign Non-Owned & Hired Automobile Liability
Foreign Hired Automobile Physical Damage
Foreign Business Automobile Liability
Pollution Liability
Product Recall Liability

Miscellaneous

Contractual Hold Harmless Agreements
Foreign Workers Compensation
Guild Travel Accident Requirements
Patent Infringement Benefits
Political Risk & Confiscation

The cost of insurance protection is only one of the factors that you should consider when inquiring into coverage for your business. Options are available that may reduce your policy premium while narrowing the scope of the insurance protection at the same time. Below are examples of some of the coverage options that are currently available:

Deductible

Property coverage is generally written with a flat deductible amount. As a general rule, as you increase the deductible amount, the property coverage premium will reduce. In other words, the property premium for Building coverage with a $10,000 Deductible will cost less than the same coverage written with a $1,000 Deductible.

Some coverages, such as Business Interruption and Extra Expense, may be written with a waiting period stated in hours rather than as a dollar amount. Generally, a longer the waiting period is less costly than a shorter period. Therefore, if your business were to sustain a covered loss that resulted in lost income, a policy written without a waiting period would respond immediately whereas a policy written with a 72 hour waiting period would not respond for three days from the time the claim occurred. In essence, your deductible would be the amount of income lost during the waiting period.

Valuation Clause

This option is utilized by the insurance company to determine the amount of money you would collect in the event of a loss.

  1. Replacement Cost
  2. Actual Cash Value (Depreciated Amount)
  3. Legal Liability
  4. Selling Price (on Sold Merchandise)

Coverage Forms

Basic Form —Is a "Named Perils" coverage form that enumerates each of the perils that coverage is provided for. For example: fire, windstorm, hail, smoke, explosion, etc. This coverage form provides the least amount of protection for your property and it is generally the least costly of the available forms.

Broad Form —Is a "Named Perils" coverage form that enumerates each of the perils that coverage is provided for. This form generally provides coverage for all of the perils that are covered under the Basic Form plus glass breakage, falling objects, weight of snow, ice or sleet and specific types of water damage claims.

Special Form or All Risk Form —Covers all direct physical damage to property unless excluded. This form provides you with the broadest amount of coverage currently available.

The two biggest differences between the "Named Perils Form" and the "Special Form" or "All Risk
Form" are as follows:

  1. Theft coverage is included in the "Special Form" and "All Risk Form"
  2. The burden of proof to show where coverage exists is on the insured with the "Named
    Perils Form." The burden of proof to show where coverage is excluded is on the insurance
    carrier with the "Special Form" or "All Risk Form."

PLEASE NOTE THE "SPECIAL FORM"/ "ALL RISK FORM" CONTAINS NUMEROUS EXCLUSIONS such as flood, earthquake, political risk & confiscation, boiler and machinery explosions or defects, war, extreme temperature changes, insects and vermin just to name a few.

Coverage Territory

Where your Property is covered:

  1. United States only.
  2. United States and Canada only.
  3. United States its possessions and territories and Canada only.
  4. Worldwide.
  5. Worldwide excluding listed countries.

Important Terms and Conditions

Policy exclusions which you may wish to avoid:

  1. Theft from unattended vehicles.
  2. Damage to property stored in the open caused by rain, hail, sleet, or snow while at a location not under your control.
  3. Theft of equipment by the person to whom you rented the equipment.
  4. Loss resulting from riot and civil commotion.
  5. Terrorism

Coverage terms and conditions that we recommend:

  1. Transit coverage.
  2. Unnamed Locations coverage.
  3. Insure generators mounted on motor vehicles as personal property rather than as part of the vehicle.

Our experience proves that all of these are important and not readily available from agents or brokers not accustomed to handling your unique insurance needs.

The preceding is a general summary of the insurance coverages that you should consider. It is interpretive only and is not intended to replace or supersede any of the terms and/or conditions of the policies comprising the insurance program. In case of specific interpretation of coverages, you need to refer to the actual policies. Please contact us for a copy of the policy.

Film & Video Equipment Rental Contract Terms

Your rental contract should include the following terms and conditions:

  1. A Hold Harmless and Indemnification clause making the lessee responsible for any and all damage or injuries resulting from the use of the equipment by the lessee.
  2. Where the equipment is owned by the lessor or another, the lessee will provide evidence of the following coverages:
    1. Coverage is to be written on an All Risk or Special Form Basis including Transit, Unnamed Locations Locations, Breakage and Theft from Unattended Vehicles.
    2. The valuation of the insured equipment is to be Replacement Cost or Legal Liability without deduction for depreciation. Vehicles will be insured on an Actual Cash Value basis.
    3. Third Party Property Damage Liability.
    4. Commercial General Liability.
    5. Workers Compensation & Employers Liability.
    6. Non-Owned & Hired Automobile Liability.
  3. The lessee will be responsible for the equipment from the moment it leaves the rental location, or the sub-rental facility, until it is returned to the respective rental facilities during normal business hours.
  4. The lessee is also responsible for damage to the equipment while stored at the rental facility, as a courtesy to the lessee, and during the camera check out procedure. The lessor shall be acting as agent for the lessee for any property stored or transported on behalf of the lessee and shall be free from any responsibility for damage to such property.
  5. The lessee shall be responsible for the loss of rental income during the period of time it takes to repair or replace the destroyed, damaged or unreturned property or until the payment of the damage charges is made, whichever is later.

Additional coverage requirements for equipment which leaves the United States, vehicle rentals or the transportation of props, sets & wardrobes:

  1. Foreign Liability.
  2. Physical Damage on Hired Vehicles. Vehicles will be insured on an actual cash value basis.
  3. Props, Sets & Wardrobe coverage including Transit and Unnamed Locations.
  4. Political Risk & Confiscation.

Other Considerations:

  1. The coverage carried by the lessee will be deemed the primary coverage and issued on a noncontributory basis.
  2. The lessee will name the lessor as an Additional Insured on the liability policies listed above and as a Loss Payee, as their interest may appear (ATIMA), on the property policies listed above.

This website provides a general summary of the insurance coverages that you should consider. It is interpretive only and is not intended to replace or supersede any of the terms and/or conditions of the policies comprising the insurance program. In case of specific interpretation of coverages, you need to refer to the actual policies. Please Note: You cannot contract for coverage by means of e-mail or by requesting information or coverage through this website. Coverage will only become effective after your account has received approval by the insurance company and a deposit premium is received in our office.