How Construction Equipment Dealers Can Generate More Rental Income
Loss Damage Waivers or “rental insurance” is mandatory on every piece of equipment that you rent. There are two typical ways Construction Dealer rents their equipment in today’s market. The first way is the dealer collects a rental certificate from their customer. In this process the customer has to call their insurance agent to get the certificate and provide a copy to the Construction Equipment Dealer. This process is lengthy for the customer and the dealer. It takes time away from the rental agent to process paperwork that could be eliminated, and allow him to do his job – rent equipment. It also adds another cumbersome step for the customer who wants to rent his equipment and get back to the job.
The second way dealers can rent their construction equipment is by selling them Loss Damage Waivers (LDWs). In this hassle free process the dealership is allowed to rent to everyone that comes in and charges a fee for the insurance. In order for a dealer to offer rental insurance they need to have a Dealer Inventory policy that is worded legally and appropriately to sell Loss Damage waivers to their customers.
LDWs can add value in several ways:
- Hassle Free Dealer to rent from
- Rent to all customers
- No insurance certificate
- Excellent Coverage
- Additional Revenue Stream