Insurance policies
always come with fine print, clauses and exclusions, often leaving you confused and concerned about coverage. It's better to ask your representative all the questions you can and to read your policy thoroughly.
Significance
When you have a business that requires you to rent equipment in order to complete a project, be sure you are covered. Even though you have insurance, you may not be fully covered. Be sure you're covered on all ends before something happens, rather than after the fact--when it could cost you a lot of money and possibly your business. When you buy insurance for your business, be sure you read the entire policy--including the fine print--and ask your representative all of the questions you have to be sure that the reasons you chose the insurance are met.
Function
Liability insurance covers the equipment your business owns, to an extent. However, it doesn't cover rented equipment in any form. There's a clause in insurance policies called "Exclusion J." It's located under Coverage A and says that any property that is rented or occupied by the insured is excluded from the Bodily Injury and Property Damage Liability Coverage. It also goes on to say that any property that is "loaned" to the insured is also excluded.
Solution
Because of this exclusion, it's a good idea to ask your insurance representative for further coverage or get the extended insurance that's offered by the rental company. Always be sure that your business is insured the way you assume. Always ask questions and be prepared to take the correct precautionary measures.
Considerations
Just because most general liability insurance policies don't offer the protection you would like doesn't mean you don't have the option of creating a policy made to fit your businesses-specific needs. If you've already bought an insurance plan, you're not stuck with it; you can have the policy rewritten to fit your businesses needs. A good site for ideas of the types of insurance policies available is Business Insurance Now.
Warning
Never assume coverage or take the risk of not knowing whether you're covered or not. It took you time to build and create your business. You don't want to waste it all by carelessly choosing the proper coverage.
