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Loss Damage Waiver

Loss Damage Waiver

Cleveland Brothers Equipment Co., Inc. has a two-tiered insurance policy. To be eligible to rent equipment, customers must provide:

  • a certificate of insurance showing a minimum of $1,000,000 general liability coverage, OR
  • Individuals not providing proof of physical damage insurance must accept a Loss Damage Waiver (LDW) that carries a fee of 14% of the gross rental amount.

While an LDW is not insurance, it does provide limited protection against accidental loss or damage to rented equipment owned by Cleveland Brothers Equipment Co., Inc. or the CAT Rental Store. An LDW is NOT available for certain rental items, including:

  1. equipment licensed for highway or public roadway use
  2. equipment re-rented from other equipment companies on behalf of the customer.

Items Covered:

  • Replacement cost coverage
  • Physical damage coverage (damage from misuse, negligence or abuse is NOT covered)
  • Fire, theft, vandalism
  • Deductible of 2% of replacement value ($1,500 minimum, maximum of $5,000)
  • Coverage is in effect only 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 include: 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 its limits, such as jumping railroad tracks in a skid steer, curling an 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 – with a minimum of $1,500 and a $5,000 maximum. If the machine is valued at $100,000, your deductible is $2,000.

Do LDW fees apply to all Rentals?

LDW can be waived by submitting a valid certificate of insurance covering physical damage to the rental unit.

Where do I send the insurance certificate?

Certificates can be faxed to: “Rental Department” at 717-564-3890.  Please call 717-564-2121 with questions.

LDW Coverage Exclusions

  • Damage caused by exceeding or overloading the rated equipment capacity.
  • Damage due to lack normal servicing of equipment (i.e., lubrication).
  • Loss or damages associated with vandalism, malicious mischief, theft of conversion or equipment not documented by customer’s prompt filing with applicable public authorities (with an immediate printed copy of a formal written report to Cleveland Brothers Equipment Co., Inc.)
  • Wrongful conversion by customer in possession of the equipment or infidelity of customer’s employees or persons to whom equipment is entrusted.
  • Loss or damage caused by 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 customer or authorized representative dishonest or criminal activity.
  • Loss or damage that was or should have been expected due to an extraordinary application or use of equipment.
  • Damages or loss associated with use or operation of equipment by a person other than customer’s qualified employees, including damages to or loss of equipment loaned to a third party.
  • Loss or damages resulting from exposure to radioactive, contaminated or hazardous materials.
  • Normal wear items, including, but not limited to, tires and undercarriages.


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