Industry overview
Rental and leasing businesses hand valuable property to customers and then get it back, which means their assets spend much of their life outside the business's direct control. The condition of rented property and how customers use it drive much of the risk.
These businesses also carry premises and product-style exposure, since equipment they provide can malfunction or cause harm in a customer's hands. Insurance for the sector commonly protects the rental fleet itself while addressing the liability that comes from customer use.
Common business types
- Equipment and tool rental
- Party and event rental
- Vehicle and trailer leasing
- Construction-equipment rental
- Audio-visual and tech rental
- Furniture and goods leasing
Common risks
Damage to rented property
Rental assets can be damaged, lost, or stolen while in customer hands.
Customer-use liability
Equipment that malfunctions or is misused can cause injury or damage.
Maintenance responsibility
Failure to properly maintain rental assets can lead to claims.
Premises and storage
Yards and storage areas create property and injury exposure.
Transit and delivery
Delivering and collecting assets creates auto and transit exposure.
Fleet value
A large rental fleet represents substantial property value to protect.
Common insurance requirements
Lenders financing rental fleets commonly require property and physical-damage coverage, and businesses typically carry general liability for premises and customer-use exposure. Operations that deliver assets need commercial auto, those with employees carry workers compensation, and rental agreements often address customer responsibility for damage.
Recommended coverages
Core Coverage
Operational Coverage
Employee-Related Coverage
How much does it cost?
There is no single price for rental & leasing insurance — the total depends on which of these coverages you carry and the specifics of your business. As a rough guide, here are general national averages for the coverages this industry commonly needs.
- $300–$1,000 per year for many small businesses
- $500–$1,500 per year for many small businesses
- $1,000–$3,000 per year, depending heavily on property value and location
- $1,500–$3,000 per vehicle per year
- $500–$3,000 per year, driven largely by payroll and job class codes
These are general national averages shown for comparison only — not a quote. Actual premiums vary widely with underwriting and depend on the factors above and the specifics of your business, including size, revenue, location, claims history, and the limits you choose. See how we estimate costs.
Hypothetical claim examples
Damaged rental equipment
Rented equipment is damaged while in a customer's possession. Inland marine coverage may help, subject to policy terms and the rental agreement.
Customer-use injury
A customer is injured using rented equipment that allegedly malfunctioned. General liability may help respond, subject to terms.
Yard property loss
A storm damages assets in the rental yard. Property coverage may help with repair and replacement, subject to terms.
Frequently asked questions
Who is responsible for damage to rented equipment?
Responsibility commonly depends on the rental agreement, but rental businesses frequently insure their assets under inland marine even when agreements assign customer responsibility.
Does general liability cover customer use of equipment?
General liability commonly responds to injuries and damage arising from rented equipment, subject to policy terms and exclusions.
How is a rental fleet insured?
Mobile rental assets are commonly insured under inland marine, which addresses property that operates away from a fixed location.
Do delivery operations need commercial auto?
Yes. Businesses that deliver and collect rental assets commonly need commercial auto for those vehicles.
Does maintenance affect liability?
Failure to properly maintain rental assets can contribute to claims, so maintenance practices are an important part of managing exposure.
How do I get a quote for my business?
Call The Southern Agency at 1-800-777-1872 or request a quote online, and an advisor can help with coverage tailored to your specific business type.
All Rental & Leasing business types
Get covered for any of the 9 business types in this industry.