Short answer
Rented laser scanner insurance usually comes from one of two places. The rental company asks for a certificate showing you insure its equipment, or it sells you its own damage waiver. Your general liability and professional liability policies typically don’t pay to repair a rented scanner. For a one-time rental, the waiver is often the simplest route. If you rent often, you may want to tell your carrier and cover rented equipment on your own policy for the year.
Why rented laser scanner insurance comes up
A laser scanner can cost tens of thousands of dollars. Many firms don’t own one, or need a second unit for a large job, so they rent. The rental agreement then raises a question with no simple answer: if the scanner breaks, who pays?
What the rental agreement usually asks for
Rental agreements often ask for some version of these items:
- The replacement value of the equipment
- A certificate of insurance showing coverage for rented equipment, sometimes naming the rental company
- The rental company’s own damage waiver for a fee, in place of a certificate
Read who is responsible for what. Some agreements hold you responsible for the full replacement value, plus lost rental income while the unit is repaired.
Why your liability policies may not cover a rented scanner
General liability responds to injury or damage you cause to other people’s property. It commonly excludes property in your care, custody or control, and a rented scanner is in your care. Professional liability responds to claims about your work, not to damaged equipment. A rented scanner usually needs equipment coverage, often called inland marine, an equipment floater or scheduled equipment. Your policy wording confirms how each coverage applies.
How often you rent changes the best option
The first question to ask is how often you rent, since the answer shapes which option makes sense.
You rent once or rarely. The rental company’s damage waiver is often the cleanest answer, because you pay for it on that rental and you are done. Read the exclusions before you rely on it. Waivers can limit coverage for situations such as theft, misuse or loss in transit, and some still leave you with a deductible.
You want your own coverage for one rental. Ask your broker early, since some carriers don’t write short-term coverage for a few days. One option may be to add the scanner as a scheduled item on your business owners policy. That is real coverage, but it can last longer than the rental and you pay for the full term.
You rent often. Tell your carrier up front that you rent equipment regularly. Depending on the carrier and the policy, rented equipment may be covered as business personal property, as property of others in your care, or under an equipment policy that includes rented or leased equipment. Each rental then stops being a separate insurance project. Ask whether the coverage applies away from your office and on job sites, what limit applies per item, and what the deductible is.
Real-world example
A small design and scanning firm planned to rent a scanner with a replacement value of about $70,000. The rental shop required a certificate of insurance and also offered its own rider. The owner estimated that rider at about 15% of the rental, or around $141 a day.
The carrier the firm asked didn’t offer true short-term rental coverage. It could schedule the scanner on the business owners policy for the rest of the term. On that quote, the additional premium was $489 with a $2,500 deductible, and the carrier needed the item name and serial number.
This is one quote on one rental, so treat the numbers as an illustration rather than a price you should expect. The comparison shows that a waiver is priced per rental, while the policy option is priced per term.
Rent once, rent often or buy
- Rarely: compare the rental company’s waiver against your own options, and read its exclusions.
- A few times a year: compare the waiver cost across all your rentals with the cost of adding coverage to your policy for the year.
- Most months: tell your carrier you rent regularly and ask about covering rented equipment. At this point, pricing a purchase may also make sense.
What to check
Before pickup, review these points:
- Who the rental agreement holds responsible for damage, theft and lost rental income
- What the damage waiver excludes and what deductible remains
- Whether your current policy covers rented equipment, and at what limit per item
- Whether that coverage applies away from your office and on job sites
- Whether your broker has the make, model, serial number and value of the scanner
Adding equipment to a policy can take time, so contact your broker before the rental date rather than the morning of pickup.
Hardcover insight
The firms that get stuck often treat every rental as a one-off. If renting is part of how you work, say so on your application. One conversation with your carrier can replace a certificate scramble every time you rent. If you already own scanning gear, LiDAR scanner insurance covers your own equipment, and our page on BIM and 3D scanning insurance explains how we approach the industry. If a rental company asks for proof of coverage, our certificates of insurance page is a good place to start.
Related questions
Does my general liability cover a rented scanner?
Usually not. Damage to equipment in your care is generally an equipment or inland marine question, and your policy terms control the answer.
Can I insure a rented scanner for just a few days?
Sometimes, but many carriers don’t offer it. Some will schedule the scanner for the policy term instead, so ask before the rental date.
Is the rental company’s waiver enough?
Sometimes. Read what it excludes and what you still owe after a loss, then compare it with what your own policy could provide.
I rent all the time. What should I do?
Tell your carrier. Ask whether rented equipment can be covered for the year, on job sites, at a limit that fits what you rent.