Before investing in an RPP, it’s best to think through additional considerations. Below are questions you may have before investing in that additional Rental Protection Plan.
Note, Rental Protection Plans are also known as “Customer Protection Plans”, or CPP.
Typically, there are 3 common areas of protection covered by Rental Protection Plans:
Theft Protection covers scenarios where a rented asset is stolen from the jobsite. Depending on the Supplier, the RPP will cover part or full amount of the asset replacement cost. This difference is obviously significant and close attention should be paid to this criteria.
Damage Protection often includes “unintentional” damage to the rented equipment. This, as well, can cover part or all of the damage expense, depending on Supplier. When compared to insurance coverage, RPP damage protection is typically positioned as superior, covering damage that traditional insurance will not.
Tire Protection is the third area of protection and the least financially impactful. Typically, costs up to a specific amount, e.g. $50, are covered. When compared to theft and damage protection, this benefit is the least impactful.
Unfortunately, the applicability of an RPP depends highly on the opinion of liability from the Supplier. Typically, the small font includes verbiage connected to “intentional abuse”. If the Supplier deems any damage, for example, to arise from intentional abuse, they can wave the applicability of the RPP on your situation.
Typically RPPs, or CPPs, are offered by larger rental companies as they require a bit more organizational sophistication. Here are a few examples of rental companies with Rental Protection Plans:
Yes, some equipment rental companies do require a deductible to be paid first. A common value of the deductible is $500.
Great question! “Extra” temporary insurance-like solutions, like RPP’s, have value that correlates to risk. So, before you buy an RPP add-on to your rental, ask yourself these questions?