Like many organizations, your business may rent or lease equipment from time to time. You may be planning a special event and need a tent to accommodate a large number of people as part of a business activity. Or, perhaps you are renting a sound system for a concert, or leasing office equipment such as your copier. These kinds of events create added risk to an organization.
It is essential to have an understanding of who is responsible for the rented equipment and that your knowledge is consistent with the written agreement. Not all rental arrangements are the same. Some rental contracts will include property damage insurance as part of the rental fee while others place the responsibility for any damage on the business or individual renting the equipment. And finally, some rental contracts require you to pay a deductible if there is damage. This can all be very confusing especially if you are leasing or renting a high-value item.
There are many important things to remember when considering a rental agreement:
- Leasing companies can include banks, brokers, equipment specialists, as well as independents and each has a different level of flexibility and requirements when it comes to lease/rental agreements.
- Understand the agreement language regarding repairs, maintenance and upgrades if you have a long-term lease.
- It may be more cost-effective and in your best interest to insure the equipment yourself.
We offer a number of insurance options if you rent or lease equipment. Coverage is available for a wide variety of goods while in your care, custody, and control such as:
- Property located on or off-premises
- Property in transit
- Equipment held on display in showrooms or at other exhibitions
With our office you have the option to customize your coverage, limits, and deductibles. You may even select different deductibles for different coverages. When you are deciding to either purchase or lease equipment, be certain that you are aware of all the costs involved and then make the appropriate choice for you and your organization.
Des Armstrong, founder of Armstrong Timeshare Association, has more than 30 years of experience working with over 150 unique timeshares, timeshare management companies, timeshare homeowner associations and has direct experience with disaster management and related services associated with the timeshare industry. Des developed Armstrong Timeshare Association to provide a risk management resource to the industry as it specifically relates to asset protection. He believes that asset protection is achieved through a combination of information, education, loss control and insurance.