October 2, 2008
Vendor Night at Bobcat of NH
Saturday, September 27, 2008
Thursday, September 18, 2008
The Best Offense is a Good Rental Agreement
When getting an insurance quote for your rental business, the insurer will usually ask for a copy of your current rental agreement. (If they don’t, find a new insurance company.) Why is this document an important part of the underwriting process? What is the insurance company looking for? They are ensuring that you’ve done everything possible to protect your assets. And your rental agreement should contain key elements and verbiage that reduce everyone’s level of risk.
A well-written and clearly presented rental agreement creates a winning scenario for you as well as the renter and the insurance company. You win when your agreement addresses all of the contingencies and costs of operating the business. You win when customers understand and agree to abide by the agreement or the consequences of default. You win every time you avoid a legal dispute or insurance claim.
A good rental agreement does not ensure everyone will be satisfied in the event of an unfortunate incident. But when the rules are outlined, the outcome of the incident is clear, leaving little room for dispute or blame. The significance of the rental agreement is just like any other contract. A rental agreement is really a list of previous problems that can hopefully be avoided. All of the “legalese” are included in the agreement because business owners want assurance of protection, especially if they have been burned in the past. In addition, a good agreement also protects the insurance company. Remember, your insurer sees more problems annually than you will see in your business lifetime so they are well aware of the relative risk. But other business owners have unfortunately discovered the hard way that all the bases weren’t covered the way they should be.
A typical rental agreement contains several key provisions designed for your protection. Some provisions are so important that an insurance company will not insure you without them. Other provisions work together to eliminate or contain your liability for loss or damage to property or to persons at your store.
Key Provisions:
• Hold-Harmless Agreement - the rentee agrees to assume responsibility for all personal injury and property damage caused by the rental equipment.
• Indemnity Agreement - the rentee is agreeing to reimburse you the rentor for any liability the firm incurs, even liability to the rentee.
• Inspection Clause – creates a duty to inspect the equipment by the rentee, making them share in this responsibility along with the rental company.
• Merger Clause – should be on the front of the contract, preferably in bold print. This clause (which should be signed by the rentee) basically states that the rentee has read all of the terms and conditions of the contract and agrees with them. In order to validate your rental agreement, always obtain a “signed rental contract" from the rentee.
• Conversion Warnings – informs the rentee that failure to return the rented goods may constitute conversion, larceny, or other form of theft designated in their state statue.
The best way to avoid legal disputes is to be clear in your rental agreement as well as your disclosure of rentee responsibility. The contractual provisions described here will help protect you. Your attorney as well as national and state rental associations are good sources of information about the laws that affect the actual language used in your rental agreement.
Steer clear of the blame game. Rather than burying important clauses in small print or glossing over them during the rental presentation, thoroughly educate customers before they sign on the dotted line. Correctly handled and worded, your rental agreement can protect your business and renters and keep your insurance company happy. Now that’s a win-win-win situation. As the saying goes, “the best offense is a good defense.” And your rental agreement is your first line of defense.
A well-written and clearly presented rental agreement creates a winning scenario for you as well as the renter and the insurance company. You win when your agreement addresses all of the contingencies and costs of operating the business. You win when customers understand and agree to abide by the agreement or the consequences of default. You win every time you avoid a legal dispute or insurance claim.
A good rental agreement does not ensure everyone will be satisfied in the event of an unfortunate incident. But when the rules are outlined, the outcome of the incident is clear, leaving little room for dispute or blame. The significance of the rental agreement is just like any other contract. A rental agreement is really a list of previous problems that can hopefully be avoided. All of the “legalese” are included in the agreement because business owners want assurance of protection, especially if they have been burned in the past. In addition, a good agreement also protects the insurance company. Remember, your insurer sees more problems annually than you will see in your business lifetime so they are well aware of the relative risk. But other business owners have unfortunately discovered the hard way that all the bases weren’t covered the way they should be.
A typical rental agreement contains several key provisions designed for your protection. Some provisions are so important that an insurance company will not insure you without them. Other provisions work together to eliminate or contain your liability for loss or damage to property or to persons at your store.
Key Provisions:
• Hold-Harmless Agreement - the rentee agrees to assume responsibility for all personal injury and property damage caused by the rental equipment.
• Indemnity Agreement - the rentee is agreeing to reimburse you the rentor for any liability the firm incurs, even liability to the rentee.
• Inspection Clause – creates a duty to inspect the equipment by the rentee, making them share in this responsibility along with the rental company.
• Merger Clause – should be on the front of the contract, preferably in bold print. This clause (which should be signed by the rentee) basically states that the rentee has read all of the terms and conditions of the contract and agrees with them. In order to validate your rental agreement, always obtain a “signed rental contract" from the rentee.
• Conversion Warnings – informs the rentee that failure to return the rented goods may constitute conversion, larceny, or other form of theft designated in their state statue.
The best way to avoid legal disputes is to be clear in your rental agreement as well as your disclosure of rentee responsibility. The contractual provisions described here will help protect you. Your attorney as well as national and state rental associations are good sources of information about the laws that affect the actual language used in your rental agreement.
Steer clear of the blame game. Rather than burying important clauses in small print or glossing over them during the rental presentation, thoroughly educate customers before they sign on the dotted line. Correctly handled and worded, your rental agreement can protect your business and renters and keep your insurance company happy. Now that’s a win-win-win situation. As the saying goes, “the best offense is a good defense.” And your rental agreement is your first line of defense.
Friday, September 12, 2008
Disaster Preparedness Alert
National Equipment Register
Disaster Preparedness Alert
HURRICANE IKE LIKELY TO BRING DEVASTATION TO TEXAS AND OTHER GULF AREAS
EQUIPMENT OWNERS AND RENTAL FLEETS ADVISED TO BE ON GUARD FOR THEFTS GENERATED BY ANTICIPATED STORM CLEAN UP
Equipment owners, Dealers and Rental Companies throughout the gulf region should make machine security an aspect of their preparation for Hurricane Ike's landfall. When the clean up efforts begin, the vulnerability of and demand for equipment will undoubtedly result in increased thefts- owners that take steps to address this will be less likely to be targeted.
For Equipment Owners in the Impacted Areas:
Do not allow crews to abandon machines on job sites- if possible, return all equipment to yards.
Machines that must be left on sites should be disabled
Have operators document specifically which machines were left where, and how they were disabled. If parts were removed, document where they are stored for reinstallation.
Normally, NER suggests machines be parked in highly visible areas to deter vandalism and theft. The storm will reduce traffic volumes and the deterence of public observation in some areas. If this is the case, machines should be concealed or parked out of view as well as disabled
Clearly post your contact information on and in your equipment- should emergency responders need access to your equipment, be sure they have the means to contact you
Update your NER registration- be sure your emergency contact details are current on your registration profile, and your inventory is current
Advise local Law Enforcement that you have equipment in the area and will assist emergency responders- they should contact you instead of commandeering the machines
After the storm- survey your equipment, be sure all machines are accounted for and report any thefts as soon as local law Enforcement is able to respond. NER can record thefts on the NER system even if a police report cannot be made yet.
For Equipment Owners in Adjoining Areas:
Con men, fraud artists, and unscrupulous contractors will descend on the areas impacted by the storm. Past storms show that they will collect equipment along the way, by theft and fraud.
Specialty equipment like Brush Chippers, Stump Grinders, and especially generators should particularly be protected- Rental Companies and Dealers should keep these machines inside your yards.
Generators should not be left on job sites- rental companies should work with clients to educate them on machine security and the heightened theft threat.
Do not let machines called off rent languish- get machines back to the yard or on to the next client as soon as possible. If pickup cannot be arranged, work with your client to secure the machine until you can retrieve it.
Rental Companies and Dealers must be wary of out of state customers and local customers you have no business history with.
Verify local references- do not rely solely on names and phone numbers provided by the customer.
Verify all credit account rentals by company employees unfamiliar to you- call a contact you know at the company to confirm authorization for the employee to rent.
Get detailed information on where machines will be used, and check out the site. Contact the general contractor or property owner.
Don't assume a credit card is valid because the deposit pre-authorizes. Call the issuer to ensure there is no potential problem. Contact your card services fraud department for advise and assistance.
Be very cautious if clients want to provide their own transportation- this is a common trend in both rental and purchase frauds. Insist on delivering machines, and educate your delivery personnel to recognize a suspicious drop off location.
Think about how you will locate and retrieve the machine if the transaction ends up fraudulent.
Insist on a maintenance check on the machine.
Require 24 or 48 hour rental renewal for unknown customers
Conduct a spot check on machines to ensure the drop off location was not just a staging area to load your machines onto the thieve's transport.
Most importantly- go with your gut, and communicate with your local industry. If something suspicious occurs, contact other local companies to keep a look out.
· All owners should take this opportunity to be sure your NER registration is up to date- be sure your emergency contact information is current, and update any new machine additions.
· Communicate with local Law Enforcement- let them know thefts potentially will be on the rise due to the storm so that there patrol personnel can be on alert for break ins and odd hour transport.
Please report thefts to NER as soon as possible- simply reply to this message with theft details, call NER at 866-663-7872 option 2, or submit a theft online at http://nerusa.com/submit_theft.asp
GOOD LUCK TO ALL OUR CLIENTS AND LAW ENFORCEMENT IN IKE'S PATH- OUR PRAYERS ARE WITH YOU!!
National Equipment Register
David Grant Mossman
Senior Analyst
866-663-7872
dmossman@nerusa.com
www.nerusa.com
Disaster Preparedness Alert
HURRICANE IKE LIKELY TO BRING DEVASTATION TO TEXAS AND OTHER GULF AREAS
EQUIPMENT OWNERS AND RENTAL FLEETS ADVISED TO BE ON GUARD FOR THEFTS GENERATED BY ANTICIPATED STORM CLEAN UP
Equipment owners, Dealers and Rental Companies throughout the gulf region should make machine security an aspect of their preparation for Hurricane Ike's landfall. When the clean up efforts begin, the vulnerability of and demand for equipment will undoubtedly result in increased thefts- owners that take steps to address this will be less likely to be targeted.
For Equipment Owners in the Impacted Areas:
Do not allow crews to abandon machines on job sites- if possible, return all equipment to yards.
Machines that must be left on sites should be disabled
Have operators document specifically which machines were left where, and how they were disabled. If parts were removed, document where they are stored for reinstallation.
Normally, NER suggests machines be parked in highly visible areas to deter vandalism and theft. The storm will reduce traffic volumes and the deterence of public observation in some areas. If this is the case, machines should be concealed or parked out of view as well as disabled
Clearly post your contact information on and in your equipment- should emergency responders need access to your equipment, be sure they have the means to contact you
Update your NER registration- be sure your emergency contact details are current on your registration profile, and your inventory is current
Advise local Law Enforcement that you have equipment in the area and will assist emergency responders- they should contact you instead of commandeering the machines
After the storm- survey your equipment, be sure all machines are accounted for and report any thefts as soon as local law Enforcement is able to respond. NER can record thefts on the NER system even if a police report cannot be made yet.
For Equipment Owners in Adjoining Areas:
Con men, fraud artists, and unscrupulous contractors will descend on the areas impacted by the storm. Past storms show that they will collect equipment along the way, by theft and fraud.
Specialty equipment like Brush Chippers, Stump Grinders, and especially generators should particularly be protected- Rental Companies and Dealers should keep these machines inside your yards.
Generators should not be left on job sites- rental companies should work with clients to educate them on machine security and the heightened theft threat.
Do not let machines called off rent languish- get machines back to the yard or on to the next client as soon as possible. If pickup cannot be arranged, work with your client to secure the machine until you can retrieve it.
Rental Companies and Dealers must be wary of out of state customers and local customers you have no business history with.
Verify local references- do not rely solely on names and phone numbers provided by the customer.
Verify all credit account rentals by company employees unfamiliar to you- call a contact you know at the company to confirm authorization for the employee to rent.
Get detailed information on where machines will be used, and check out the site. Contact the general contractor or property owner.
Don't assume a credit card is valid because the deposit pre-authorizes. Call the issuer to ensure there is no potential problem. Contact your card services fraud department for advise and assistance.
Be very cautious if clients want to provide their own transportation- this is a common trend in both rental and purchase frauds. Insist on delivering machines, and educate your delivery personnel to recognize a suspicious drop off location.
Think about how you will locate and retrieve the machine if the transaction ends up fraudulent.
Insist on a maintenance check on the machine.
Require 24 or 48 hour rental renewal for unknown customers
Conduct a spot check on machines to ensure the drop off location was not just a staging area to load your machines onto the thieve's transport.
Most importantly- go with your gut, and communicate with your local industry. If something suspicious occurs, contact other local companies to keep a look out.
· All owners should take this opportunity to be sure your NER registration is up to date- be sure your emergency contact information is current, and update any new machine additions.
· Communicate with local Law Enforcement- let them know thefts potentially will be on the rise due to the storm so that there patrol personnel can be on alert for break ins and odd hour transport.
Please report thefts to NER as soon as possible- simply reply to this message with theft details, call NER at 866-663-7872 option 2, or submit a theft online at http://nerusa.com/submit_theft.asp
GOOD LUCK TO ALL OUR CLIENTS AND LAW ENFORCEMENT IN IKE'S PATH- OUR PRAYERS ARE WITH YOU!!
National Equipment Register
David Grant Mossman
Senior Analyst
866-663-7872
dmossman@nerusa.com
www.nerusa.com
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