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HIRE AND RENTAL NEWS • MAY 2016
need cover for complete theft, from anywhere, anytime.
“We can’t keep taking the hit for customers. Because every time
we claim against our insurance policies, our premiums go up as
a result.”
The way Jarrod sees it, three things need to happen:
"We need to make hire members aware their customers are
probably not covered for theft or negligent damage to equipment;
"We need to make our customers aware they are probably not
covered for theft or negligent damage to equipment;
"We need to talk to the insurance industry to say: 'we’ve got this
problem'.
"Here are some questions we need to ask our insurance
companies:
"If I have hired gear in my possession and I roll it and damage it,
what would happen?
"If equipment is stolen from my driveway what happens? Am I
covered for theft in this instance;
"If equipment on hire is stolen from my shed: would I be
covered?
“What should be happening is insurance brokers should be
advising their construction industry clients they need insurance
to cover their use of hire equipment.”
Jarrod is being proactive and has been working with AJ
Gallagher to produce a letter to his customers explaining they
need to be adequately covered when hiring equipment.
“Customers need two options to be adequately covered: to
address care custody and control or, to attach their additional
hire equipment insurance to their motor vehicle policies.
Customers need to have a sub limit of the most expensive item
they hire so if that is a 1.5 tonne excavator it would be say
$50,000. If it was a 60ft boom then it would be $150,000 and so
on."
Jarrod sent out 600 letters to his customers advising of this
discrepancy in damage waiver insurance coverage.
He had a 5% response.
“I was disappointed by my customers' reaction. Some said they
had adequate coverage; we had some customers asking what we
were talking about; and a few didn’t have any insurance at all.
“As a hire company we want to try and avoid customers that
might end up costing us big dollars in increased premiums.We’re
trying to educate people about their requirements, to help them.
Ultimately, we don’t want to see customers disadvantaged.
“We are a hire company, not an insurance company. Is it our duty
to sell the hirer the insurance?”
Visit: www.kerrshire.com.au
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