Like many organizations, your production company may rent or
lease equipment from time to time. There
are many reasons why production companies rent equipment. Perhaps you are planning
a short term film and need to rent lights or other equipment. Or your management
company is sponsoring a concert, and you need to rent a sound system.
It is important to have an understanding of who is
responsible for the rented equipment, and that your understanding is consistent
with the written rental agreement. Not all rental agreements are the same. Some
rental agreements will include property damage insurance as part of the rental
fee. Other rental agreements may require the nonprofit to be responsible for
all damage. And finally, some rental agreements may require you to pay a
deductible if there is damage. This can be very confusing especially if you are
leasing or renting a high value item.
There are many important things to remember when considering
a rental agreement:
1. Leasing companies come in many varieties including banks,
brokers, equipment specialists, independents, and companies of all sizes. Each has different levels of flexibility and
requirements.
2. Understand what the rental/lease agreement says regarding
repairs, maintenance, and upgrades. This applies more to long term leases
rather than short term leases.
3. It may be in your best interest to insure the equipment
separately. This may be more cost effective depending on how the agreement is
written.
Leased or Rented
Equipment Insurance
• Coverage is
available for a wide variety of property, during production or while in your
care, custody and control.
• Property
located on or off your premises.
• Property in
transit.
• Coverage generally
can be provided for risk of direct physical loss.
The bottom line is, when you are deciding to lease
equipment, be certain you are aware of all costs involved with the transaction.
Then, balance the costs against the benefits to make the appropriate choice for
you and your organization.
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