What Are Continuing Rental Fees?
By: Christina Lam, Assistant Vice President at Athos Insurance
Published on: 4/14/2021 11:36:00 AM
Here's how to protect yourself from additional fees for lost or damaged rented equipment.
You’ve decided to rent equipment to shoot and produce your new project. You locate a reputable rental house and secure everything you need. Everything is going well and you are getting great use out of the equipment. The return date is just around the corner and you are ready to return everything, damage-free. Then, an unexpected incident occurs.
After packing up the equipment at the end of the shoot, you leave it on the sidewalk for just a moment while opening your car. As you turn around, you see someone running off with the gear!
You know that these types of unfortunate events can happen to people renting gear. That’s why you get insurance, right? But what you may not know is that if they happen while the equipment is in your possession, a simple insurance policy may not cover everything. You could even be on the hook for additional charges.
Yes, you read that right! You may get charged additional costs from the rental house in the event of an accident or incident that leaves the gear unusable.
While most insurance claims cover the cost of replacing or repairing the rented equipment, most people forget to consider the daily monetary loss that the rental house suffers while the gear is out of commission. This monetary loss is the additional cost that the rental house charges you due to the “loss of use” that they now have to cover.
Essentially, the rental house loses money every day that this gear is out of commission because they can’t rent that same equipment to someone else.
Loss of Use Provision
As a result, more and more rental houses are including a Loss of Use provision in their rental contracts. The Loss of Use provision states that the renter is responsible for continuing rental fees every day that the rental house is unable to rent the same equipment to another party. This makes the current renter responsible for rental houses' loss of income for every single day that the rental house is unable to rent the same equipment to another person.
Those loss of use charges can be devastating for renters and add up quickly. This provision is what makes Athos’ optional Continuing Rental Fees Insurance essential. With this extra coverage, you are reimbursed for any continuing rental fees that are incurred after an initial 3 day waiting period.
Get Peace of Mind
Loss of use fees are a burden on the renter while protecting rental houses from additional monetary loss. The best way to protect yourself from this burden and ensure peace of mind is to purchase optional Continuing Rental Fees Insurance through Athos.
When you’re working, you need to be focused on your craft, your creative process, and making an incredible production. You do not want to be worried about potential mishaps, like damage to your rented equipment. Get started right here.