Party Equipment and Rental Equipment Insurance and Loss

Rental equipment companies, ranging from scaffolding services to party goods and equipment outlets, can experience significant equipment loss as a result of theft and vandalism. National Equipment Register (NER) estimates that over $1 billion a year in rental equipment and party rental equipment is stolen. Unfortunately, the rate of recovery for this equipment is usually low.

By registering your equipment the National Equipment Register, you increase the chances of having stolen items returned to you. This database is also made available to law enforcement officials, so they can track and retrieve your equipment. The Scaffold Industry Association (SIA) is a similar type of affiliation, which works to promote safety for rental equipment companies who distribute scaffolding and aerial platforms.

How can you protect your rental equipment? Insure it, and monitor it.

• Acquire proper equipment insurance for your needs: scaffolding insurance, party goods insurance, etc.
• Ask the police to drive by the premises during non-business hours.

* Have the VIN number etched or stamped into the rental equipment in multiple places, especially hidden places. Keep thorough records that include the equipment’s VIN number, model number, year and manufacturer.

• Take photos of your rental equipment from multiple angles.
• Register your equipment in a nationally recognized database, like the National Equipment Register.

Equipment theft on a job site can be deterred by security systems, fencing around the perimeter of the property, barriers, secured gates, and strong lighting. Having only one entrance to the rental yard will also help prevent theft. Make sure to keep all site and building keys secured -- and do not use combination locks, because those numbers can be given to unauthorized people. Theft can also be prevented by posting warning signs around the property notifying thieves that the equipment is documented and registered. Take inventory of your equipment often, so you will notice when a piece is missing or when something out of the ordinary happens.

You must take the first step to verify a customer’s identity. Keep a copy of his or her driver’s license, which will help you track the customer down later and also give him or her subtle notice that rented equipment is monitored. Comparing the license with other forms of identification, like a credit card or car registration, gives you further proof of identity. Some companies even go as far as to ask for a thumb print on the rental equipment agreement. If your customer fails to return the equipment he or she rented, try not to jump to the conclusion that it has been stolen with criminal intent. You are right to take action, but being negligent to return equipment on time does not automatically mean theft. Make calls to the customer or go to the construction or entertainment site �" the equipment might still be there.

What do you do when equipment is stolen?

*Use a prepared security plan with your staff. Delegate tasks for each to complete in the event that rental equipment is reported stolen.

*Call law enforcement officials as soon as you notice the rental equipment has gone missing.

*Call your insurance broker and notify him or her.

*Notify other local equipment dealers.

Why is it so easy for construction, scaffolding, and party equipment to get stolen? Because often, there is very little security on rental sites �" be they phased development sites, heavy construction project, and so on, especially in the evenings. Low security means low risk, from the perspective of a thief. Because stolen rental equipment is rarely recovered, take precautions by purchasing rental equipment insurance through a trusted broker. This will save your time, your money, and your sanity.

Allied Insurance Brokers specializes in rental equipment and party good rental equipment insurance and has specialized crane and scaffolding insurance brokers, as well. For more information, visit Allied Insurance Brokers online at www.alliedinsbrokers.com.

Article by : Kristin Kronstain