Short answer
Some scanning firms rent idle scanners to other firms, and renting out a laser scanner creates a different insurance question than using it yourself. Some equipment policies limit or exclude coverage while equipment is rented or leased to others, and others may cover it only with an endorsement. Before the first rental, tell your broker and put a written rental agreement in place that says who pays if the scanner is damaged.
Why firms consider renting out a laser scanner
A scanner that sits on a shelf between jobs earns nothing, and renting it to another firm can help pay for it. The insurance does not automatically follow the equipment, though.
A question we received
A scanning startup asked us to insure up to four scanners and planned to rent two of them out, with coverage for damage during the rental period. The owner later found another solution locally. The question comes up often enough to answer here.
Owning and renting out are different risks
When you use your own scanner, you control who handles it, how it travels and where it is set up. When you rent it out, someone else makes those choices. Underwriters generally view that difference as a change in risk.
What to ask about your equipment coverage
Before you rent out a laser scanner, review these questions with your broker:
- Does the policy cover equipment while it is rented or leased to others?
- Does coverage apply wherever the renter takes it, including other states?
- Is there a separate limit or deductible for rented-out equipment?
- Does the policy’s description of your business still fit what you do?
Policy wording, endorsements and carrier appetite vary, so the actual policy controls the answer.
What a rental agreement should say
Put the agreement in writing every time. A simple one can cover the following points:
- The renter is responsible for loss or damage while the equipment is in their hands
- The replacement value of each item
- The renter must carry insurance on the equipment and send a certificate before pickup
- How the equipment is returned, inspected and documented
Liability while the scanner is out
If the renter injures someone or damages property while using your scanner, the first question usually involves the renter’s own insurance. Renting equipment out can still bring claims back to you. Ask your broker how your general liability policy treats that situation.
Is renting out a new line of business?
If rentals become regular income, treat them like a new service. Describe the activity on your applications and tell your carriers. A policy written for a scanning firm may not anticipate an equipment rental business operating inside it.
Real-world example
A firm owns two scanners and rents one to a nearby firm for a week. The renter’s crew drops it. If the owner’s policy excludes equipment rented to others, the owner may depend on the rental agreement and the renter’s insurance. With a signed agreement and a certificate collected before pickup, there is a clear path to follow. Without them, the owner may have little to rely on.
What to check
- Whether your equipment policy covers items rented to others
- Whether the coverage applies in other states and at the renter’s job sites
- Whether a separate limit or deductible applies
- Whether you have a signed rental agreement and the renter’s certificate before pickup
- Whether your applications describe the rental activity
If you need to insure the equipment itself, start with LiDAR scanner insurance. Our page on BIM and 3D scanning insurance explains how we approach the industry. If you are on the other side of the rental, our article on renting a $70,000 scanner covers what the renter needs to consider, once it is published.
Hardcover insight
Ask before the first rental, not after the first loss. The fix is usually a conversation with your carrier plus a one-page rental agreement.
Related questions
Does my equipment policy cover my scanner while a renter has it?
It depends on the policy. Some limit or exclude equipment rented to others, so ask your broker before the first rental.
Should renters carry their own insurance?
Asking for a certificate showing the renter insures your equipment is common practice. Your rental agreement should require it before pickup.
Does renting out equipment change my other policies?
It can. Describe the activity on your applications so your carriers know what the business does.