Why is Insurance So Crucial for Equipment Rentals?

Construction equipment is so crucial and essential to help humans execute construction work. It does not come cheap and the purchase value can span from a thousand dollars for light equipment such as pallet truck, material lift, plate compactor and etc, up to a hundred thousand worth of dollars for heavy equipment such as a big excavator, crane, and etc. 

Purchase of construction equipment may not be justified for most of the contractors as the user may not be frequent. It may not be affordable for every contractor looking at the high upfront cost of purchase commitment. Hence, it is extremely common for contractors to rent construction equipment from equipment rental companies whenever there is a need for equipment to be deployed in the project.

Construction equipment is never a cheap product. An accident can occur during activities such as:

1. Lifting, loading, and unloading of equipment on site
2. Manoeuver of equipment on an uneven surface
3. Overloading of equipment during operation

Any kind of accident may greatly cost into your pocket to compensate for equipment damages cost. Thus, it is important to cover the risk of equipment damage just like car/motor vehicle insurance. The insurance to cover the equipment damage is commonly called Equipment/Machinery All Risk Insurance.

Most of the equipment rental companies will purchase Equipment/Machinery All Risk Insurance to cover their equipment for their own use only. Upon handover of the equipment to the user for rental, the responsibility of insurance coverage for equipment will solely fall on the renter or equipment user. If you are a user, you need to purchase insurance to cover the equipment damage risk. Otherwise, any damage consequences due to your mishandling will need to be borne by you. 

Just imagine if you are renting a scissor lift of just a few hundred dollars rental fees, but exposing to the potential risk of equipment damages, accident and etc, which may cause you easily incur a cost of range from a few thousand dollars to more than S$10,000, or even higher cost for more valuable equipment.

You are unknowingly taking a very high equipment risk!  

Isn't it look normal for a user to purchase insurance to cover equipment risk just like you are buying car/motor vehicle insurance? 

In fact, it is extremely difficult or basically no way to get insurance cover for rented equipment for the “short term”. Many insurance providers in Singapore only prefer to underwrite Equipment/ Machinery All Risks on a certain fleet size and on annual basis only. The underwriting procedure will usually take a week up to a month. Not only the lengthy underwriting process, as a short-term hirer of single equipment, but it may also be expensive and difficult to buy EAR insurance individually. 

So, for equipment rental from a day, week to a month, if you are the renter will have no choice but to accept the fact that you are exposing to equipment damage risk throughout the entire rental duration. Any accident or major damage repair cost could easily cause a financial disaster to your company. Therefore, it is so crucial for you to ensure coverage of insurance during the entire rental duration to mitigate the potential risks. 

Up to S$15,000 Equipment Damage Loss Protection!

Antbuildz Team strives to make you're rental safer than ever! To facilitate convenience and cost-effectiveness, Antbuildz.com has partner with a well-known insurance broker to customize EAR insurance tailored for every rental made via the Antbuildz.com platform only.

Antbuildz Machinery All Risk is a custom-made Machinery All Risk to protect every equipment rental that you made online via Antbuildz.com. With up to a maximum of S$15,000 of first loss coverage, its can significantly lower down your risk expose during the rental period. Rent your equipment with peace of mind with Antbuildz.com today!

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