Everything You Need to Know About Insurance for Rental Equipment


The right amount of insurance on rental equipment protects both the company or individual that rents the machinery and the company they rent it from. No one wants to be responsible for the full value of the equipment in the event that it’s accidentally damaged during use. Take a look at some of the specific requirements needed when purchasing insurance for your rental equipment.

Is insurance optional?

No, insurance is not optional. You can either provide a Certificate of Insurance that proves you have adequate insurance to cover the repair or replacement of the machinery if it’s damaged in your possession, or you can pay for a Loss Damage Waiver (LDW) through the company renting the equipment.

I have Liability insurance. what proof do I need?

In order to use your own insurance for equipment rental with Papé Rents, your Certificate of Insurance has to include:

  • Inland Marine/Physical Damage specifically covering short-term rental equipment with limits of at least $100,000 per item.
  • Inland Marine/Physical Damage must list Papé Machinery, Inc., Papé Material Handling, Inc., and Papé Rents as a Loss Payee.
  • Comprehensive General Liability with limits of $1,000,000 per occurrence.
  • Comprehensive General Liability with Papé Machinery, Inc., Papé Material Handling, Inc., and Papé Rents shown as an additional insured.

I Don’t have Liability insurance. How much is the Loss damage waiver and what does it cover?

The LDW through Papé Rents is 18% of the rental cost. It covers collision, fire, hail damage, theft (a police report is required), roll-overs, flood, wind damage, and vandalism. It doesn’t cover equipment abuse or neglect.

Is There a Deductible?

There is a $1,000 deductible per machine when using the Papé Rents LDW. That means in the event the rental equipment is damaged and determined to be covered under the LDW, the maximum you’ll have to pay out of pocket is $1,000. If you’re using your own rental liability insurance, check with your provider for more information on your deductible.

Should I use Papé Rents Loss Damage waiver in addition to my insurance?

Many of our customers find when comparing our LDW to their rental liability insurance that our coverage is better. There is no limitation on double coverage and all customers can opt for the LDW in addition to their primary coverage if they choose.

What Do I Do If Rental Equipment Is Damaged While In My Possession?

Don’t worry - as long as you were using the equipment as it was intended to be used and there is no evidence of abuse or neglect, you’re covered. Just contact the salesperson you worked with and report the damages. Our rental team will then assess the damage, make sure it’s covered by the LDW, and handle the paperwork to submit a claim. Once the paperwork is submitted, we’ll collect your deductible and set you up with another rental if needed.

Renting equipment is easy and worry-free with Papé Rents. Visit your nearest Papé location today for a rental or to speak with our team about equipment rental insurance.



Visit a Papé Dealership

We have more than 70 locations in the West.

View our Locations
Your browser is out-of-date.

It has known security flaws and may not display all features of this and other websites. Please upgrade to one of these free browsers:

Firefox Internet Explorer    Opera     Chrome