11 - Leasing/Rental of Equipment to 3rd Parties
This risk factor focuses on risk associated with leasing and renting of equipment by insured to others on a short or long term basis. The risk will vary by type of equipment hazards. This exposure may include renting and leasing of machinery, tools, compressors, generators, lifts, scaffolding and heavy construction equipment including cranes etc. Some equipment may require competency, skills and operator licensing.
What do we look for?
- Operations include rental/leasing of equipment to third parties.
- No written rental/lease contract.
- No written rental/lease contract which had attorney review prior to use.
- No verification of required certification, license, etc.
- Inadequate inspection and/or preventative maintenance as well as removal from service procedures.
- Inadequate user training procedures.
- No rental/leasing equipment to third parties.
- Written rental/lease contract always used.
- Contract initially had attorney review.
- Any required certifications, licenses, etc. always reviewed and documented.
- All equipment inspected before AND after rental/lease using formal, written procedure.
- Formal preventative maintenance as well as removal from service procedures.
- Formal user training procedures
- Use a written rental/lease contract that has been reviewed by an attorney.
- Provide manufacturer-supplied instruction manual and warnings for the equipment and ensure required operator skills and training in use of equipment.
- LOLER (UK Lifting Operations & Lifting Equipment Regulations 1998).
- Aust. Standard AS 2550 Cranes, hoists and winches – Safe use 2003.
- LOLER Summary