Tractor Rental Service Insurance

Finding the Best Tractor Rental Service Insurance

Protect your tractor rental business with comprehensive coverage.

Tractor Rental Service Insurance

The tractor rental service industry consists of establishments that are primarily engaged in construction equipment rentals. Most of these businesses rent tractors and other equipment including tractors, excavators, loaders, skidsteers, and forklifts that are used for construction purposes.

Tractor rental service insurance is one way to protect your business from property losses and lawsuits that result from your operations. A local independent insurance agent can help you find business insurance that covers you in a variety of situations.

Why Do You Need Tractor Rental Service Insurance?

Tractor rental services are exposed to a variety of risks that can cost you a tremendous amount of money. You need tractor rental service insurance to protect your livelihood from things like the following.

  • Property damage, theft, or vandalism to your tractors and other rental equipment
  • Worker injuries
  • Lost income due to property damage or some other type of work stoppage
  • Lawsuits for causing damage to someone’s property or causing injuries to a third party
  • Car accidents involving your business-owned vehicles

Your tractor rental service insurance should help you cover the costs to repair or replace damaged property and compensate anyone who you harm as a result of doing business.

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What Does Tractor Rental Service Insurance Cover?

Your tractor rental insurance program will likely include inland marine insurance. It covers your rental tractors and other equipment on or off your business premises, regardless of who’s handling it. Inland marine policies normally provide broad protection on covered items, and you’ll have to pay a deductible on each.

It’s best to assume that, even despite your rental agreement, if anyone is injured while using one of your rental tractors, you could have to defend yourself from a lawsuit—even if the allegations are unfounded.

That’s where your commercial general liability insurance comes in. This policy, if written in a way that considers your unique risks, may cover you for any bodily injury or property damage that results from your operations, including rental tractors or other equipment that are in the possession of a customer.

Other Insurance Considerations for Your Tractor Rental Service

When developing your rental agreement with the help of your attorney, the rental agreement should assign responsibility to the customer for loss or damage of the tractor, and for any bodily injury or property damage liability coming from the use of the tractor. You still need to take a variety of steps to protect yourself even further, including the following.

  • Customers should be property trained in using the tractor or any other construction equipment that you rent out.
  • You should have a clear understanding with your insurance carrier about any rules or restrictions concerning the rental of potentially dangerous or hazardous equipment.
  • If you’re renting high-value equipment, or renting a tractor for a long period of time (e.g., to a contractor), you may want to insist that the customer purchase an insurance policy on the equipment and/or a liability policy to cover its use. 

You should also consider investing in excess liability insurance, also called commercial umbrella insurance. Commercial umbrella insurance provides liability insurance limits above and beyond certain other liability policies (CGL, commercial auto) at a more affordable cost than increasing the limits of several individual policies. 

Basic Insurance Policies That Every Business Needs

Most tractor rental services will need a variety of additional business insurance policies that are common for all businesses. These include the following.

  • Workers’ compensation insurance: This covers work-related injures and illness for your employees.
  • Commercial property insurance: This covers your buildings, workspaces, and all kinds of commercial property including equipment, tools, office furniture, computers, and more if they’re damaged or destroyed by fire, smoke, theft, vandalism, or a weather event.
  • Business interruption insurance: This reimburses you for lost income and helps pay for certain ongoing expenses if you are temporarily unable to operate due to a covered loss (fire, weather, vandalism, etc.).
  • Commercial auto insurance: This covers your business-owned autos (cars, trucks, vans, etc.) when they’re involved in an accident. It’ll help you pay for injuries and property damage to third parties, and can help you repair and replace your own vehicles that are damaged as well.
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How Much Does Tractor Rental Service Insurance Cost?

Tractor rental service insurance costs will vary depending on the size of your business, the number of employees you have, and how much business property (buildings, tools, and equipment) you have. Your costs are also influenced by your location and its crime and weather risks, and the types and amounts of coverage you need to appropriately cover your risks.

Benefits of an Independent Agent

Independent agents can work with numerous, reputable insurance companies who specialize in your type of business. Together you can review a variety of proposals and choose the best mix of coverage that meets your needs and budget.

What’s more, your agent will be there for you when claim time comes. They know the ins and outs of the process and will make sure your claim is handled appropriately.

Find and Compare Quotes for Tractor Rental Service Insurance

Instead of getting an online quote, find an independent insurance agent now, and get one-on-one consultation and affordable options for the best coverage for your unique needs.

Your agent will work with you free of charge to get quotes from multiple insurance companies so you can make the best choice.

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TrustedChoice.com Article | Reviewed by Paul Martin

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