General liability insurance is a crucial form of protection for businesses. It helps cover the costs associated with third-party bodily injury and property damage claims. However, it is not all-encompassing and does not typically cover rented equipment or other specialized risks.
Coverage and Exclusions
General liability insurance covers third-party bodily injury and property damage claims. This means if your business is sued because of your actions or the actions of an employee, this insurance can help with the legal costs and any required payouts, provided the case falls under the covered risks.
Rented Equipment and Other Insurance Types
Rental equipment insurance is distinct from general liability insurance and is designed specifically to protect rented equipment from damage. A damage waiver may limit the amount a customer is charged for damaged equipment, but it’s not a substitute for insurance. Contractors should be aware that they might be held liable for damages to rented equipment and possible revenue losses that the rental company incurs while the equipment is being repaired.
Companies that rent out equipment typically have their own insurance to cover repair and cleanup costs, but this does not extend to damage caused by renters. Therefore, contractors may need their own rental equipment insurance to fully protect themselves against potential liabilities.
Insurance Options for Equipment Rental Businesses
For businesses involved in renting out equipment, it is important to consider various types of insurance:
- General Liability
- Commercial Auto
- Inland Marine
- Product Liability
- Workers Compensation
- Rental Equipment Insurance
The cost of insurance varies based on the type and amount of coverage necessary to safeguard the business. Workers’ compensation insurance, for instance, is mandatory in most states if a business exceeds employee minimums set by state law.
General liability insurance does not cover the costs associated with rented equipment damage. It is intended to protect against a broader range of risks that could impact a business’s operations. Understanding the coverage and exclusions of general liability insurance is essential for any business owner seeking to protect their assets and ensure the survival of their venture in the long term.