Do you need insurance for your equipment rental company?

insurance for your equipment rental company

Accidents can be dangerous. They’re usually expensive. If you own and operate an equipment rental company, it’s important to understand the liabilities and – most importantly – your insurance obligations.

Depending on the type of equipment, you’ll want to research different kinds insurance for your equipment rental company. In this article, we’ll detail a few different types of insurance and provide actionable tips on how to prepare an insurance claim for your equipment rental company, should you ever need to.

Types of insurance for your equipment rental company

General Liability Insurance

General Liability Insurance covers your business when faced with claims of bodily injury, associated medical costs and damage to property that occurred because of your business operations. With this coverage, you won’t have to pay for medical expenses of property damage from your pocket. General Liability insurance is also referred to as “Business Liability Insurance” or “Commercial Liability Insurance” for your equipment rental company.

Commercial Auto Insurance

From accidents to injuries, having a commercial vehicle for your business comes with risks. However, for many businesses having a company vehicle is crucial, which means having the right protections in place are just as crucial as having the vehicle itself.

Business Automobile Liability Insurance for your equipment rental company was purposefully designed to help protect businesses from the unknown. With higher coverage limits than personal auto insurance, it helps safeguard businesses and improves a business’ chances of continual operations.

Workers Compensation

Often called “Workman’s Comp,” this insurance covers the occurrence of employee injuries. It provides wage replacement and medical benefits to employees who are injured at work.

It’s your job to keep employees safe at work. However, work-related injuries happen. Sometimes employees get injured on the job, and that’s why we have Workers Compensation Insurance.

This insurance covers medical costs and lost wages, as well as rehabilitation or physical therapy. It’s mandatory in many states and highly recommended for all employers, especially those in need of insurance for equipment rental companies.

Hopefully, you’ll never have to use insurance for your equipment rental company…

But, at some point, you probably will – and when that day comes, you’ll be glad you have it!

Still, with proper planning and care, most accidents are at least preventable.

Below, we provide a few tips so that (hopefully) you won’t need to use insurance for your equipment rental company very often!

Tip 1: Know your equipment and how it’s going to be used

Depending on what type of equipment you rent out, any number of things can go wrong.

If you rent moving trucks, boxes and furniture can slide around and potentially fall on a hapless customer.

If you rent rototillers, the equipment operator could hit a gas or telephone line under the ground, potentially causing thousands of dollars in damage.

When you rent equipment out to customers, ask questions about how they plan to use it, whether they’ve investigated permits, and whether the equipment matches the job performed. Knowing how your equipment is going to be used could help you avoid the need to use insurance for your equipment rental company.

Tip 2: Look into specialized insurance coverage

While you should definitely get insurance for general liability (and auto insurance, if your equipment rental process involves the use of vehicles), most insurance companies provide a smattering of specialized insurance coverage. Depending on your business, you may want to look into property-in-transit insurance, loss of use, accounts receivable or cyber security insurance coverage. The latter is particularly important if you’ve digitized your operations.

Tip 3: Add subcontractors to your insurance policy

If, like many equipment rental companies, you work with subcontractors, it’s worth asking whether your insurance for your equipment rental company includes subcontractors. In fact, many insurance policies don’t cover them, unless you specifically ask. Contact your insurance agent to discuss coverage for current and future “subs” – it’s better sooner rather than later!

For more information on insurance for your equipment rental company, check out the following resources. These agencies have robust insurance coverage for equipment rental businesses like yours:

Do You Need Rental Equipment Insurance? – Allied Insurance Brokers (

Equipment Rental Insurance: Finding the Best Coverage | Trusted Choice

Small Business Insurance – State Farm®