EXCAVATION INSURANCE GROUP
Does My Policy Cover a Rented Excavator?
Excavation Insurance Group explains when hired equipment coverage applies to a rented excavator, and why the coverage limit matters as much as having it at all.
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Quick answer: Excavation Insurance Group on this: Only if your equipment floater specifically includes hired equipment coverage, and only up to whatever limit that coverage carries. It is not automatic on every policy, and a limit sized for a small skid steer won’t stretch to cover a rented excavator worth several times more.
WHY RENTAL AGREEMENTS PUT THE RISK ON YOU
Nearly every equipment rental agreement makes the renter responsible for damage or theft while the equipment is in their care, custody, and control, regardless of who’s at fault. Rental companies know this, which is why most now charge a damage waiver fee by default unless you can show proof of your own coverage. Assuming the rental yard’s insurance handles it is one of the more expensive assumptions a contractor can make.
CHECK THE LIMIT, NOT JUST WHETHER IT’S THERE
Confirming hired equipment coverage exists on your policy is step one. Step two, the one people skip, is checking whether the limit actually matches what you tend to rent. If your policy’s hired equipment limit was set years ago around smaller rentals and your jobs now call for larger excavators, that gap doesn’t show up until a claim does.
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Related: Is Equipment Covered in Transit Between Job Sites? | Do I Need Separate Coverage for Each Piece of Equipment?
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