How to Protect Your Construction Business from Potential Liability When Using Rental Equipment

If you're a construction contractor and you need access to a piece of equipment you can't afford to own or won't be needing all the time, equipment hire from a place like Master Hire Pty Ltd is an option to consider. In most cases, you won't be required to incur any large initial capital expenditure, and you will make smaller monthly payments than what you would pay if you were buying the equipment outright. In addition to this, you may not have to worry about servicing of the equipment, as the rental company is usually responsible for maintenance and repair of the equipment. In order to minimise exposure of their business to potential liability, equipment rental companies normally take certain steps. As a construction contractor, it is important that you emulate what these businesses do with regards to limiting equipment-related liability risk.

With that said, here's a look at some of the best practises to follow.

Equipment inspection

Before making equipment available for the next job, equipment hire companies usually inspect every unit for general wear and tear when it is returned at the end of a hire period. This way, they can identify issues that need fixing before the equipment can be cleaned and serviced in readiness for the next hire. Equipment inspections also help to determine if a particular piece of equipment still has some service life in it. Equipment that is too old or overly worn may no longer be usable and may need to be replaced. 

Inspecting rental equipment prior to operation is a great starting point when it comes to reducing equipment-related liability. As a construction contractor, you will want to make sure that the equipment delivered to you is safe to operate. Most importantly, be sure to document all equipment inspections you perform. The documents can really come in handy when you need to protect yourself from liability claims. 

Insurance coverage

When equipment rental companies hire out equipment to customers, anything can happen. To protect themselves from financial losses that may arise due to theft, damage or loss of rental equipment, equipment hire businesses usually insure their fleet and they may require their customers to be properly insured as well. 

In this regard, you should consult your construction insurance company to determine the appropriate insurance coverage for your business. You can buy extra insurance from your rental company if they offer a good deal.

With these tips in mind, you should be able to make the most from your equipment hire. For more information, feel free to contact your trusted equipment hire company.