Rental Equipment Coverage (REC)
What Is Rental Equipment Coverage (REC)?
Rental Equipment Coverage (REC) is the coverage we provide to our customers in order to reduce their risk. It limits your risk in relation to both destruction and damages of the equipment you rent from The Cat Rental Store. Account customers may opt out of this program if proof of insurance is provided.
What Does It Cover?
All Risks Physical Damage Coverage on Rental Equipment (includes Re-rentals) includes:
- A police report or fire report will be required in any of these claims.
- Accidental Damage, such as:
- Body damage
- Hail damage
- Engine over-speeds
- Equipment roll over
- Collision damage(to the rented equipment only)
- Impact damage(collision, equipment driven over)
- Failure due to fluid leakage(engine fails because rad hose breaks)
What Doesn't It Cover?
This is not liability insurance.
The customer is still responsible for liability coverage through their corporate policy or homeowner policy. No carrier will cover the liability for a third party.
- Account customers should be covered for liability by their general liability policy.
- Liability coverage for the cash customer should be covered by their personal/homeowner policy.
The customer is responsible to ensure the operator or operator's are adequately trained and competent.
REC does not cover:
Maufacturer warranty issues such as:
- Lack of maintenance
- (EG. Running low on oil because of extended service intervals.)
- (EG. Not cleaning concrete products like mixers, trowels and vibrators.)
- (EG. Not chaining down when hauling.)
- (EG. Over-spray on aerial equipment.)
- Glass damage
- Tire damage
- Excess undercarriage wear
- Wear items such as: - Bucket teeth, Chains, Blades, Brushes, Retrieval of Equipment and Ground Engaging Tools
- Environmental Contamination or Cleanup
- Mechanical breakdown
- Latent defect
These are covered by the manufacturer's warranty, or REC. There is no deductible on these items.
Where Does It Appy?
- Mandatory for all non-account customers.
- Account customers will take the same coverage but have the option of waiving the coverage by providing proof of insurance coverage from their agent.
- REC coverage will be charged until proof of insurance is provided in writing.
- Proof of insurance consists of:
- Certificate of property insurance showing specific or blanket rented equipment coverage, or
- Letter of insurance confirming coverage on specific equipment showing The Cat Rental Store as loss payee.
- The proof of insurance MUST be faxed, photocopied, or e-mailed before the rental contract is closed out.
- Proof of insurance MUST be supplied to The Cat Rental Store before the rental contract closes or else REC charges will apply.
- Customers who have provided proof of insurance (discussed above) may still elect to be covered by REC at their discretion.
How Much Does It Cost?
The cost is only 14% of the rental charges.
- (EG. On the daily rental of a mini-excavator of $300 the REC charge is $42.00.)
- (EG. On the weekly charge of $900.00 for a boom lift the REC rate is $126.00.)
- (EG. On the monthly rental of a diesel plate for $2,500.00 the REC rate is $350.00.)
- On a claim, the customer has a deductible of 10% of the replacement cost of the rental unit to a maximum of $2,500.00.
- (EG. On a $500.00 chainsaw the deductible would be $50.00.)
- (EG. On a $35,000.00 236 skidsteer it would be $2,500.00.)
- REC does not exempt the customer from payment of damages, it limits their risk.
- The deductible applies to both damages and repairs, as well as total loss of the unit.
- In relation to damages and repairs, the lesser of the actual repair cost or the deductible would be charged.
- (EG. On a $500.00 chainsaw which has sustained $40.00 in damage, the charge would be the $40.00, as the damages were less than the deductible.)
- (EG. On a $35,000.00 236 skidsteer which has sustained $8,000.00 in damage, the charge would be the deductible of $2,500.00, which is less than the actual charges.)
Who Needs It?
- This program is mandatory for all non-account customers (Cash).
- Account customers who don't want to have to contact their insurance agent every time they want to add or take a piece of equipment from their policy.
- It must be used when account customers cannot provide proof of insurance coverage.
Why Do I Need REC?
- Peace of mind.
- Provides certainty of coverage.
- For cash customers we can offer a lower deposit requirement when they take REC. As opposed to a one month deposit minimum we take today.
- Recommended for the rental of pumps (reduced risk if an oversized object is inhaled).
- Recommended when small equipment is used with the larger mobile equipment (drive overs).
- Provides an option for account customers who are able to provide proof of insurance coverage.
- Easier than contacting your insurance broker with equipment change notices, especially on short term rentals.
- Reduces the need to claim something on your own policy. Can reduce increases in premiums in the event of a claim.
View REC Information Booklet (PDF)
For our more information call: 1-866-285-5550