Read the damage obligation
Identify responsibility for theft, breakdown, wear, recovery, loss of use and replacement cost. Determine when responsibility begins and ends, including transit and return. A contractual promise to reimburse the rental company is not evidence that a contractors equipment policy covers the same obligation.
Check the insurance extension
Review limits, reporting requirements, maximum values and restrictions for rented or borrowed property. Ask whether attachments and replacement units are included and whether a loss payee is required. A rental company’s damage waiver also needs review; it should not be assumed equivalent to comprehensive insurance.
Document possession and condition
Keep the signed agreement, delivery condition, serial numbers, values and return records. Clarify who operates and maintains the unit and whether sub-rental is permitted. Bring unusual terms to the broker and legal adviser before mobilization rather than waiting for a damage dispute.
Illustrative review scenario
A rented unit is damaged and the lessor demands repair costs plus rent during the repair period. The contractor reviewed only the limit for rented equipment. Compare the agreement with the physical damage and loss-of-use provisions, including any conditions or exclusions. The lessor’s invoice establishes its demand, not the insurer’s obligation to pay every component. Does the rental agreement require continued rental payments while a damaged unit is repaired? Compare that obligation with any loss-of-use or rental reimbursement provision instead of assuming physical damage coverage includes it.