Damage Waiver

Resources: Rental Protection Program

Rental Protection Program (RPP) 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 Kerrisdale Equipment. 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:

Fire
Theft
Vandalism

Accidental Damage, such as:

Collision damage (to the rented equipment only)
Equipment roll over
Hail damage
Impact damage. e.g. Collision, equipment driven over
Failure due to fluid leakage. e.g. Engine fails because radiator hose breaks
Engine over-speeds
Body damage

What Doesn't it Cover?

This is not liability insurance. The customer is still responsible for liability coverage through their own corporate policy or homeowner policy. No carrier will cover the liability for a third party.

Liability coverage for the cash customer should be covered by their personal/homeowner policy.
Account customers should be covered for liability by their general liability policy.

RPP does not cover:

Lack of maintenance
e.g. Running low on oil because of extended service intervals.
e.g. Not cleaning concrete products like mixers, trowels and vibrators.
Negligence
e.g. Not chaining down when hauling.
e.g. Over-spray on access equipment.
Misuse
Glass damage
Tire damage
Excess undercarriage wear
Wear items such as: Bucket teeth, Blades, Chains, Brushes

Manufacturer warranty issues such as:

Mechanical breakdown
Latent defect
Explosion

These are covered by the manufacturers' warranty, not RPP. There is no deductible on these items.

Where Does It Apply?

Cash customers

Mandatory for all non-account customers.

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.
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 Kerrisdale Equipment as loss payee.
Proof of insurance must be supplied to Kerrisdale Equipment before rental contract is opened or else RPP charges will apply.
Customers who have provided proof of insurance (discussed above) may still elect to be covered by RPP at their discretion.

How much does it cost?

The cost is only 10% of the rental charges. Examples as below.

On the daily rental of a mini-excavator of $300 the RPP charge is $30.00.
On the weekly charge of $900.00 for a boom lift the RPP rate is $90.00.
On the monthly rental of a diesel plate compactor for $2,500.00 the RPP rate is $250.00.

Deductible

On a claim, the customer has a deductible of 10% of the replacement cost of the rental unit to a maximum of $2,000.00.
e.g. On a $500.00 chainsaw the deductible would be $50.00.
e.g. On a $18,000.00 air compressor the deductible is $1,800.00.
e.g. On a $35,000.00 236 skidsteer it would be $2,000.00.
RPP 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.
e.g. 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.
On a $35,000.00 236 skidsteer which has sustained $8,000.00 in damage, the charge would be the deductible of $2,000.00, which is less than the actual charges.

Who Needs It?

It must be used when account customers cannot provide proof of insurance coverage.
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.

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