Equipment Rental Insurance and Damage Waivers: The Basics

This is general information, not insurance or legal advice. Terms vary by yard and policy, so read your rental agreement and talk to your insurer.

Who is responsible for damage?

Rental agreements commonly make the renter responsible for loss or damage to the equipment while it is in their care. Read that section before signing.

Damage waivers

Many yards offer an optional damage waiver for a fee. A waiver is usually not insurance: it is the yard agreeing to limit what it will charge you for certain damage. Ask what is excluded (for example misuse, theft, tires, or glass) and whether there is a deductible.

Your own insurance

Businesses may already carry coverage for rented equipment (often called rented or leased equipment coverage, or inland marine coverage) and general liability coverage. Homeowners' policies may not cover rented construction equipment. Ask your agent before you rent.

Certificates of insurance

Some yards ask business customers for a certificate of insurance naming the yard. Ask early so your agent has time to issue it.

General information only, not legal, safety-certification or insurance advice. Always follow the manufacturer's instructions and the rental yard's terms.