Damage Waiver

Paw Paw Rentals Damage Waiver Policy

What is the Damage Waiver?

Paw Paw Rentals requires that rented equipment be protected against physical damage while it is out on rent. Customers may satisfy this requirement in one of two ways:

1. Purchase Paw Paw Rentals’ Rental Damage Waiver, where available; or
2. Provide acceptable proof of physical damage insurance covering rented or leased equipment for an amount equal to or greater than the replacement value of the rented equipment.

The Rental Damage Waiver is not liability insurance and does not cover injury, property damage to others, or damage caused by excluded uses or conditions. It is an agreement between Paw Paw Rentals and the customer that limits the customer’s responsibility for covered physical damage to eligible rented equipment, subject to the terms, exclusions, and deductible described below.

For some eligible items, Paw Paw Rentals’ Rental Damage Waiver program is supported by a rental equipment policy issued through Specialty Equipment Insurance Services, Inc. / SEIS.

Damage Waiver Charge

The Damage Waiver charge is calculated as a percentage of the rental charge and is shown on the rental contract.

The Damage Waiver charge does not apply to sales tax, delivery, pickup, cleaning charges, fuel charges, environmental fees, or other additional fees unless specifically stated on the rental contract.

Customers may decline the Damage Waiver only if they provide acceptable proof of physical damage insurance before the rental begins.

Insurance Required to Decline Damage Waiver

To decline the Damage Waiver, the customer must provide a Certificate of Insurance showing coverage for rented, leased, or borrowed equipment in an amount equal to or greater than the replacement value of the equipment being rented.

Paw Paw Rentals may reject a certificate if the coverage is unclear, insufficient, expired, or does not specifically cover rented equipment. If acceptable proof of insurance is not provided before the rental begins, the Damage Waiver will apply where available.

Deductible / Customer Responsibility

The Damage Waiver includes a deductible of up to $2,500 per claim.

This means the customer is responsible for the first $2,500 of repair or replacement cost, or the actual cost of the damage, whichever is less.

Example:
If covered damage costs $800 to repair, the customer is responsible for $800.
If covered damage costs $5,000 to repair, the customer is responsible for the first $2,500, subject to the Damage Waiver terms and exclusions.

The deductible applies even if the damage would otherwise be covered under the Damage Waiver.

What the Damage Waiver May Cover

Subject to the terms, exclusions, deductible, and immediate reporting requirements, the Damage Waiver may limit the customer’s responsibility for accidental direct physical damage to eligible rented equipment during the rental period.

The Damage Waiver only applies to equipment listed on the rental contract and only during the rental period.

What the Damage Waiver Does Not Cover

The Damage Waiver does not cover all damage or loss. The customer remains fully responsible for damage, loss, repair, cleaning, replacement, downtime, or other costs caused by or related to any excluded event, including but not limited to:

1. Misuse, abuse, intentional damage, or negligent operation
2. Use inconsistent with the equipment’s intended purpose or design
3. Failure to follow manufacturer instructions, safety rules, or Paw Paw Rentals’ instructions
4. Exceeding rated load capacity, lift capacity, towing capacity, or operating limits
5. Overloading or using the equipment beyond its rated capability
6. Mechanical breakdown caused by improper use, improper maintenance, or customer neglect
7. Wear and tear, normal deterioration, or ordinary mechanical failure
8. Ingestion of foreign objects, including rocks, wire, debris, metal, stumps, roots, or other materials
9. Damage solely to tires or tracks, including blowouts, punctures, cuts, or track damage
10. Electrical arcing, except where caused by lightning if covered under the applicable policy
11. Damage caused by paint, concrete, plaster, mud, asphalt, rosin, chemicals, biological materials, or other contaminating materials
12. Cleaning costs or restoration costs due to dirty, contaminated, or improperly returned equipment
13. Pollution, hazardous materials, biological materials, or chemical exposure
14. Use in violation of any law, ordinance, regulation, rental contract term, or safety requirement
15. Dishonest, criminal, fraudulent, or intentional acts by the customer, employees, agents, subcontractors, or anyone entrusted with the equipment
16. Loss due to mysterious disappearance, unexplained loss, or equipment not returned
17. Theft unless properly reported and supported by a police report and all required documentation
18. Governmental action, seizure, confiscation, war, military action, insurrection, or nuclear hazard
19. Loss of use, lost rental income, downtime, or business interruption
20. Damage caused while the equipment is being processed, modified, repaired, altered, or worked on by the customer or a third party
21. Use on or near water, submerged use, flooding, or equipment moved or operated in water unless specifically approved in writing
22. Contact with overhead power lines, underground utilities, or high-voltage sources
23. Damage to lifts from trees, branches or saws
24. Any damage or loss excluded by the applicable rental agreement, SEIS/CNA policy, or Paw Paw Rentals’ written terms

Customer Duties After Damage, Loss, Theft, or Accident

The customer must immediately notify Paw Paw Rentals of any damage, loss, theft, accident, malfunction, or unsafe condition.

The customer must also:

1. Stop using the equipment if continued use could cause further damage or create a safety risk.
2. Take reasonable steps to protect the equipment from further damage.
3. Provide a complete written description of what happened.
4. Provide photos, videos, witness information, police reports, or other documentation if requested.
5. Cooperate with Paw Paw Rentals, SEIS, the insurance carrier, and any adjuster or investigator.
6. File a police report for theft, vandalism, mysterious disappearance, or other suspected criminal activity.

Failure to promptly report damage or cooperate with the claim process may result in denial of Damage Waiver protection, and the customer may remain fully responsible for all costs.

Customer’s Own Insurance

If the customer has insurance that may cover the damaged or lost equipment, the customer agrees to cooperate in submitting a claim under that insurance.

The customer agrees to provide Paw Paw Rentals with complete insurance information upon request and to assign or pay to Paw Paw Rentals any insurance proceeds related to the rented equipment.

The Damage Waiver does not replace the customer’s liability insurance, auto insurance, workers’ compensation coverage, or any other insurance required by law or by contract.

Not Liability Insurance

The Damage Waiver is not general liability insurance.

It does not cover:

• Injury to people
• Damage to the customer’s property
• Damage to third-party property
• Auto liability
• Towing liability
• Environmental liability
• Workers’ compensation claims
• Damage caused by the customer’s vehicle, trailer, employees, contractors, or other equipment

The customer remains responsible for safe use, proper operation, site conditions, and compliance with all laws and safety requirements.

Paw Paw Rentals’ Rights

Paw Paw Rentals has the sole right to determine whether damage is covered by the Damage Waiver, whether an exclusion applies, the amount of the deductible, the repair method, whether equipment should be repaired or replaced, and whether a claim should be submitted.

Acceptance of the Damage Waiver charge does not guarantee that all damage or loss will be covered.