Equipment Rental Insurance Cost

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Equipment rental can be a very profitable enterprise, whether you are dealing with common supplies or specialized machinery. While the up-front cost to purchase your assets may be very high, it could only take a couple of rental periods to recover that initial investment. But each new customer brings a new risk. You are relying on their ability to operate the equipment without damaging it or harming anyone. If something happens, you could be held liable. Equipment rental insurance is an essential coverage for any company operating a rental business and the best way to protect yourself.

This guide will ensure you have all the information you need about equipment rental insurance cost to choose the right policy for your business.

We Cover in This Guide

  • How much does equipment rental insurance cost?
  • What is equipment rental insurance?
  • Equipment rental insurance coverage
  • Benefits and risks
  • Tips for buying
  • All types of Insurance you may need
  • FAQ
  • Summary

How Much Does Equipment Rental Insurance Cost?

Equipment rental insurance cost varies depending on factors like your location, type of equipment rented, payroll, sales, and experience. The premium prices for common policies are as follows:

How much does equipment rental insurance cost?

When you have specific needs, you can customize your policy to cover your particular risks. These specialized policies may be more costly.

What is Equipment Rental Insurance?

Running an equipment rental business involves various risks. Each time a customer rents your equipment, while you are bringing in income, you are also putting your assets and your company in jeopardy. They could steal or damage your equipment, the equipment could malfunction or someone could operate it without proper knowledge resulting in damaged property or even injuries. Could your business afford to replace the equipment you just purchased? What if your client or a third party sues you for damages? Equipment rental insurance covers the cost of replacing equipment and protects you from the financial toll of potential lawsuits by paying for legal defense and damages if you are found liable.

Equipment Rental Insurance Coverage

There are countless things that can go wrong when you rent equipment to a customer. Whether it’s a result of improper maintenance or user error, if something happens, you could be found responsible and held liable for damages. Most equipment rental insurance policies provide coverage for scenarios that fall into the following categories:

  • Bodily injury
  • Property damage
  • Personal injury
  • Product/completed operations
  • Third party property damage
  • Business personal property
  • Lost business income
  • Equipment breakdown
  • Work-related injuries and disease
  • Ongoing medical care (such as rehab)
  • Missed wages during recovery

While basic equipment rental insurance covers most of your potential risks, there are certain scenarios that are not included in most policies. Some examples are:

  • Equipment stolen or damaged while in transit
  • Accidents involving business vehicles
  • Exposure of customer information from a data breach
  • You can often get protection from these potential claims by adding additional coverage to your policy.

Benefits and Risks

Equipment rental insurance offers various benefits to cover risks, including:

  • Protecting business assets: The nature of a rental business involves allowing third parties to operate your equipment. This policy covers you for repair and replacement in case anything is damaged or breaks down.
  • Cover legal expenses: If a client or third party sues you, you are protected from the costs of fighting lawsuits and the damage if you are found liable.
  • Peace of mind: ​Knowing that your business is covered in the event of an unexpected occurrence gives peace of mind to you and your customers. Clients are more likely to rent from a company that is adequately protected.

Tips for Buying

When considering equipment rental insurance cost, keep the following in mind before making your decision:

  • Work with an independent agent: An independent insurance agent will help direct you toward providers that have the most experience in your industry.
  • Bundle policies: Companies will often provide discounted rates when you combine certain key policies.
  • Compare quotes: Policy costs vary between insurance providers. Consider several quotes to find the best rates and coverage.
  • Identify your risks: Be sure to thoroughly analyze your business, considering your equipment and customers, to know all potential risks. After that, choose the proper limits and include all the applicable coverages.

All Types of Insurance You May Need

General liability insurance Business Owner Policy Cyber liability insurance
Commercial auto insurance Inland marine Workers' compensation


How will a financial crisis impact my business?
If companies are making less money, they may choose to reduce costs by renting as opposed to buying. This may increase your business and your potential risks. Make sure your coverage accounts for such a scenario.

Do I need workers’ compensation insurance?
Depending on your location, workers’ compensation insurance might be mandatory. Most states require coverage for any company that employs at least two people.

If a piece of equipment is highly technical, should I provide an operator?
Yes. If your equipment requires special training and your customer does not have it, you might need to provide someone to operate it. Renting your equipment to someone knowing they do not have proper certification could lead to your insurer dropping your coverage.


Equipment rental insurance protects your company against the potential of financial ruin resulting from damaged equipment or lawsuits relating to your business activities.

By understanding equipment rental insurance costs and determining your needs, you can know that your policy covers potential risks and feel secure knowing that your business is safe.

Typical cost is


Monthly premium rates range from $39 to $89 depending on your coverage, location, type of equipment rented, payroll, sales, and experience.

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