Many companies find that renting equipment is an attractive alternative to owning because you are only paying for equipment when you need it. But what happens if accidental damage occurs, or the equipment is stolen? Some customers provide their own insurance for physical damage on rental equipment that will help curb the financial burden, but others don’t have these policies in place.
Partner Rentals offers Rental Protection Plan, or RPP, which is a protection for the customer from being responsible for the full cost of repairing or replacing a piece of equipment in the case of accidental damage or theft. By enrolling in RPP upon renting equipment from Partner Rentals, the customer is saving themselves from the risk of a costly bill if things go awry because many of the pieces of equipment we use on our job sites are very expensive.
How does it work?
If you do not carry your own insurance policy with physical damage coverage for rental equipment, Rental Protection Plan can be added to the contract at a rate of 15% of the rental charges. If something does go wrong, you will be responsible for only 25% of the damage or replacement bill or $1,000, whichever is less. That’s it – plain and simple.
What does RPP cover?
Rental Protection Plan can be broken down into two major parts for protection.
- Accidental damage to the equipment or its parts*
- Theft of a vehicle or equipment
*Note: RPP does not cover tire, track, or glass damage.
How do the financials work in a real-life scenario?
For example, you place an order to rent a piece of equipment for your next job. You decide that the right choice for your specific job is a backhoe, a piece of equipment that is expensive. During the rental, the backhoe is stolen. You, and the related authorities, are unable to locate it and you submit a police report determining that it is stolen. Let’s break down the cost and savings realized by enrolling in RPP.
| With RPP | Without RPP | |
|---|---|---|
| Backhoe Rental | $450.00 | $450.00 |
| Cost of RPP (15%) | $67.50 | $0.00 |
| Initial Out-of-Pocket | $517.50 | $450.00 |
| Cost to Replace Backhoe | $100,000.00 | $100,000.00 |
| Your RPP Liability | $1,000.00 | $0.00 |
| RPP Benefit | ($99,000.00) | $0.00 |
| Total Cost to Customer | $1,517.50 | $100,450.00 |
Wrapping up
RPP plays an important role in keeping customers’ damage liability cost down. It is for customers who don’t provide their insurance with physical damage coverage for rental equipment, so that they are not held responsible for a costly repair bill or full replacement value of stolen equipment. The cost is 15% of the rental and then if the equipment is damaged it is 25% of the damage or replacement bill or $1,000, whichever is less. With the example of the cost analysis of a backhoe, it is very apparent that enrolling in RPP is a safe way to protect yourself or your business from the risk of paying the full bill for equipment that was accidentally broken or stolen. RPP saves money in case anything ever happens to the equipment you’re renting.
Keywords: Partner Rentals, RPP, Rental Protection Plan, Service, Accidental Damage, Equipment Theft