Cleveland Brothers has a two tiered insurance policy. To be eligible to rent equipment the customer must provide a certificate of insurance showing a minimum of $1,000,000 general liability coverage. The second criteria pertains to physical damage coverage for the machine being rented. All customers renting equipment from the Cleveland Brothers are required to provide physical damage insurance or accept the Loss Damage Waiver (LDW). Any customer not providing a proof of insurance will be charged an amount for the LDW equal to 14% of the gross rental amount.
The LDW is not insurance, it does however provide limited protection against accidental loss or damage to rented equipment, owned by Cleveland Brothers Equipment or the CAT Rental Store.
This plan does not cover equipment licensed for highway or public roadway use or equipment re-rented from other equipment companies on behalf of the customer. LDW does not cover damage from misuse, negligence or abuse.
- Replacement cost coverage
- Physical damage coverage (abuse is not covered)
- Fire, theft, vandalism
- Deductible of 2% of replacement value with a minimum of $1500 and a maximum of $5000.
- Coverage is only in effect while equipment is on your job.
What is misuse, negligence or abuse?
Misuse is using the machine for a purpose it is not intended for. Examples of misuse could be: Utilizing a backhoe bucket to break up concrete. Improper placement of the machine while excavating at a digging site, or using an excavator to tow a freight car.
Negligence could include but is not limited to leaving a machine unattended, unsecured or failing to make a timely report of an incident. (Timely reporting is considered to be the day of the incident or next business hour following the incident.)
Abuse is utilizing a machine beyond the limits of the machine such as jumping railroad tracks in a skid steer, curling the excavator bucket into the front windshield or swinging a counterweight into a tree.
What is my deductible?
The deductible is 2% of the value of the rented machine. If your machine is valued at $100,000 your deductible is $2,000. The minimum of $1,500 and the maximum is $5,000.
How do I get out of paying LDW?
LDW can be waived by submitting a valid certificate of insurance covering physical damage to our rental unit.
Who do I send the certificate to?
Fax the certificate to Dan Law 717-564-3890. Additional questions call 717-564-0598.
Exclusions From LDW
- Damage caused by exceeding or overloading the rated capacity of equipment.
- Damage from lack of providing lubrication or other normal servicing of equipment.
- Loss or damages associated with vandalism, malicious mischief, theft, of conversion or equipment not documented by the customerís prompt filing with applicable public authorities (with an immediate written copy to Cleveland Brothers Equipment Co., of a formal written report.)
- Wrongful conversion by the customer in possession of the equipment or infidelity of customerís employees or persons to whom the equipment is entrusted.
- Loss or damage caused by the use of the equipment in violation of any terms of the rental agreement.
- Loss or damage caused by failure to keep the equipment in a secure area after the unit is called off rent.
- Loss or damage resulting from dishonest or criminal activity of the customer or its authorized representative.
- Loss or damage that was or should have been expected due to an extraordinary application or use of the equipment.
- Damages or loss associated with use or operation of equipment by a person other than qualified employees of the customer, including damages to or loss of equipment loaned to a third party.
- Loss or damages resulting from exposure to radioactive, contaminated or other hazardous material.
- Normal wear items, including, but not limited to, tires and undercarriages.