Understanding Damage Waivers-Understanding Damage Waivers

Video Transcription

Video Summary

A damage waiver is an optional agreement between the equipment owner or lessor and the rental customer or lessee that waives the owner's claims for physical damage to rented equipment. The rental contract should clearly state that the customer is responsible for repair and replacement of the equipment, with few limits on their responsibility. Damage waivers can be purchased by the customer for a fee, typically ranging from 6 to 15% of the rental charge. The fees generated from damage waivers can be a significant source of revenue for rental operators, but it is important to ensure that the rental contract clearly outlines the responsibilities of the customer and the limits of the damage waiver coverage. It is also important to exclude certain types of damage from coverage, such as gross negligence, intentional abuse, violation of the rental contract, theft, mysterious disappearance, and exceeding the equipment's rated capacity. It is recommended to review insurance policies to ensure that the equipment covered by the damage waiver is not excluded from coverage. Additionally, it is advisable to make the purchase of damage waivers optional for customers, while also requiring them to comply with all other terms of the rental contract. This provides some flexibility in the application of damage waivers and helps to avoid potential legal issues.

Keywords

damage waiver

equipment owner

rental customer

physical damage

rented equipment

rental contract

repair and replacement

responsibility

damage waiver coverage