Mitigating Risk When Renting Equipment

Mitigating Risk When Renting Equipment
Mitigating Risk When Renting Equipment

The film and television production business is an expensive industry. There is also risk involved, as expensive equipment may not work properly among other potential mistakes. Companies are looking for ways to avoid high-risk circumstances. That’s why companies are beginning to use the equipment rental industry. Here is a look at some of the common risks associated with using rental equipment.

Lack Of Valuable Stock 

There is risk that stock will just sit on the floor without being used. Equipment that loses value due to the latest wave of technological advancements will be disregarded because they don’t have the newest features. Analysts point out that modern equipment is built so that it won’t be fixed. Being able to fix things is important because it saves companies time and energy. 

Absent Gear

Sometimes in the equipment rental industry, the rented gear may not return. Rental companies are aware of this issue. Many rental companies are adding amendments to their policies. Rental businesses are taking extreme measures to avoid being scammed.

Spoiled Gear

Analysts point out that while equipment has become more advanced, it has also become vulnerable to being damaged. When damages occur, insurance underwriters want to know why the equipment has been damaged. If the equipment has been accidentally damaged, it is likely covered by the policy. However, companies are at risk if an investigation shows that there was negligence on the part of the production crew. Sometimes people may slip and fall, which can cause damage to the rental equipment. Many analysts believe that a simple solution to the issue is to provide better training throughout the industry. Companies are also looking for ways to create an alternative solution in the event of a crisis. More companies have started creating on site workshops.

Misinformed

Many people who rent out their own equipment may be misinformed about the insurance process. It’s important that companies are aware of who is responsible for the insurance of the equipment. Analysts point out that many young people believe that insurance may be a scam. People should make sure that their equipment is preserved even while they aren’t using it. Companies can lose money if they do not have a thorough understanding of how the insurance process works.

Understanding The Process

The claims process comes with its own risks. In some cases, equipment damage can leave companies vulnerable and unable to cover the damages. Many companies fear having their insurance policy canceled by their providers as a result of a claim. The next policy may be double the previous rate. 

Business Models are Changing

Times are changing. Small companies were previously able to achieve success through commissions. Today, only large corporations are successful now. They are able to take on multiple commissions at once. Heading into the future, there will be more pressure on smaller companies. However, this method is considered problematic for insurance underwriters because it’s hard to pinpoint responsibility. There have been rumors of some countries developing their own Rental Company Associations.

Dealing With Violence 

There have been a few instances of violent crimes occurring in the equipment rental business. While crime does occur in every industry and impact people throughout society, the film production industry is constantly at risk. Production vehicles are often targeted for the equipment inside. Criminals often research the rental market, targeting different lenses and cameras. Directors have spoken out about generators being stolen from film sets. Directors are thinking of setting up late night deliveries to avoid the risk of fraud and other violations.

Non-Payment Issues

There issues of non payment associated with insurance policies in the rental industry. Many filmmakers have not been compensated for their work. If rental companies have invested money into the production, that could eventually lead to debt. In order to avoid being completely shut out of the industry, they will have to pay off their debts.

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