Industrial equipment insurance helps your business continue operating when equipment breaks down or otherwise costs your business money. Many companies choose to rent the equipment versus buying it. Here are the pros and cons associated with renting industrial equipment.
One way to stay on top of the industry is with the latest technology. However, this can be cost-prohibitive if you purchase the equipment. New equipment tends to be costly and the business may not have the funds available for the latest machinery. Leasing comes with small payments your business can manage without the overhead of maintaining the equipment.
The company cannot receive any investment out of a rental machine like you can by selling an owned piece of machinery. The overall cost of renting depends on the length of the lease and what your business needs the machine for. The insurance company HILB Group of Florida states coverage is not often covered by the machinery loan company. Rather your business needs to provide coverage to protect its liabilities.
Renting equipment puts your business on the hook for certain liabilities. In the event something goes wrong, industrial equipment insurance is there to help. This type of coverage is on top of over liability coverage options that may exclude industrial equipment. Renting may not be the best option for every company or project.