FAQ

Everything You Need to Know About Equipment Rental Insurance

With over thirty years of experience in equipment, JT Bates Insurance Group has been built with a strong understanding of what equipment dealers and renters need to reduce risk and maximize value. Our equipment rental insurance programs are designed, not only to help our customers protect their assets, but to help their businesses grow, as well. Below, we’ve answered some of the most frequently asked questions about our products and how they benefit our customers’ rental businesses.

Frequently Asked Qustions

Protecting rental equipment while it is out of the care, custody and control of the equipment dealer is a critical component of risk management and has direct impact on profitability for every dealer. While many damage waivers are quite limited in coverage, Rental Equipment ProtectionTM (REP) from JT Bates Insurance Group provides all-risk protection with great limits and low rates. It was designed to be a profit-driving program for rental dealers and a value-added program for rental customers.

If you self-insure, you should contact your state department of insurance to determine whether your are even legally allowed to do so. Many states require a licensed insurance producer to be on staff, and in the equipment industry, the risk of loss is very high. It’s not a question of if, but when. Just one catastrophic loss can make a huge dent in the profitability of a rental business. Self-insuring could be exposing your dealership to a huge legal and financial risk. REP and Physical Damage ProtectionTM (PDP) from JT Bates Insurance Group mitigate that risk by improving profitability with every sale without increasing the exposure to risk.

Business insurance premiums are negatively impacted when losses are filed through the carrier. REP and PDP from JT Bates Insurance Group are separate policies that do not impact business policy premiums, so a loss (even catastrophic) will not have a negative impact on business premiums. The risk is transferred to a secondary policy, losses are processed in a timely and convenient fashion, and the business is more profitable.

Additionally, if a rental company is collecting a fee for a self-funded insurance program and then filing losses with its business insurance carrier, thereby deferring the risk to the insurance company, the business insurance coverage may be subject to cancellation or non-renewal. Check with the business insurance carrier for guidelines.

Certificates of insurance are an effective way to manage risk, provided the certificates are managed appropriately. JT Bates Insurance Group can also help with certificate tracking, powered by StraightDocs. We assign a certificate manager to each account who researches every certificate and makes the calls to the insurance company on behalf of our clients. Our goal is to ensure that our clients’ businesses are adequately protected in the event of a loss, their rental customers can get back to work quickly and efficiently, and we make this process pain-free for the clients we serve.

Collecting Certificates of Insurance is great, but they’re not all created the same. In fact, many are missing important coverage which could leave you at risk.

It saves money for the rental customer. Although a rental customer may be protected by a business insurance policy, the customer is at risk of cancellation or at least increased premiums in the event of a major loss. With REP or PDP, a loss will not affect the customer’s insurance and will enhance protection by providing all risk coverage rather than just named perils.

Additionally, REP and PDP pay replacement cost, which is better than actual cash value. This alone may save the customer thousands of dollars. Further, for REP the rental customer only pays a premium for the time the equipment is on rent as opposed to an entire year as most policies require. Finally, with REP, the deductibles or customer contributions are much lower than the standard $5,000 deductible required by most insurance companies.

We’re constantly looking for ways to better serve our clients and meet their needs.

Jayme Bates, CEO

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