What is Equipment Rental and Leasing, nec (Class Code: 735900)?
This classification includes businesses primarily engaged in renting or leasing heavy construction equipment, excluding finance leasing. These operations may provide equipment with or without an operator. Companies whose main activity is finance leasing fall under a separate classification within the finance industry (Industry 6159). Typical insurance programs for this class address exposures such as commercial liability, inland marine equipment coverage, commercial auto exposure for transport, and workers’ compensation for employees.
Who Needs It
Insurance coverage under this class code is essential for businesses that rent or lease heavy equipment such as bulldozers, cranes, backhoes, loaders, and other large machinery. These businesses may serve construction companies, infrastructure projects, or other industrial operations. Whether you operate a regional rental company or serve clients nationwide, insurance helps protect your assets and operations. Operators, contractors, equipment distributors, and yard-based rental firms commonly seek tailored policies like Equipment Rental and Leasing Insurance to address their specific fleet, storage yard, and customer exposures.
What It Typically Covers
Insurance coverage for equipment rental and leasing businesses may include:
- General Liability: Covers third-party bodily injury or property damage claims related to your operations.
- Commercial Property: Protects your business property, including offices, storage yards, and equipment.
- Inland Marine Insurance: Covers mobile equipment while in transit or at a job site.
- Workers’ Compensation: Required in most states if you have employees, covering job-related injuries or illnesses.
- Commercial Auto: Covers vehicles used in your business, including transport trucks for equipment delivery.
Insurers will consider underwriting factors such as equipment values, maintenance practices, operator training, claims history, and geographic exposures. For operations focused on heavy construction fleets, see Heavy Construction Equipment Rental Services Insurance for more specialized considerations.
Common Exclusions and Limitations
While insurance offers broad protection, there are common exclusions to be aware of:
- Intentional damage or illegal activity
- Wear and tear or mechanical breakdowns
- Damage to equipment while in the care, custody, or control of the lessee (unless specified)
- Unlicensed operators or misuse of machinery
Factors That Influence Cost
Several factors can affect the cost of insurance for this class code:
- Type and value of equipment rented or leased
- Whether equipment is operated by your staff or leased without operators
- Business size, number of employees, and payroll
- Claims history and safety practices
- Location and service area
Other risk considerations include transportation risks, theft exposure, job-site hazards, and the presence of loss-control programs such as operator training and preventive maintenance.
Proof of Insurance & Compliance
Most clients and project owners will require proof of insurance before working with your business. You may need to provide a Certificate of Insurance (COI) as part of contract requirements. State and local regulations may also mandate specific coverages, especially if you operate vehicles or employ workers. Always verify requirements in the states where you operate.
How to Get a Quote
Protect your equipment rental or leasing business with the right insurance coverage. Start your free quote today.
Frequently Asked Questions
Is insurance required for leasing heavy equipment?
While requirements vary by state, most clients and job sites will require you to carry liability and property coverage to lease or rent heavy equipment.
Does my policy cover equipment while at a job site?
Yes, inland marine coverage typically protects equipment while it's in transit or on location, but check with your provider for specific terms.
What if the customer damages rented equipment?
Standard policies may exclude damage caused by the lessee unless you've added coverage or required the renter to carry insurance. Review your policy for details.
Can I add additional insureds to my policy?
Yes, many policies allow you to add clients or contractors as additional insureds, which is often required by contract.
Do I need coverage if I lease equipment without providing operators?
Yes, even if operators aren't provided, you still face risks related to property damage, theft, or liability during the lease period.
Still have questions? Talk to a local insurance expert.