What to Know about Hiring Out Your Industrial Equipment

Posted on: 18 July 2017


As a contractor or owner of a construction company, you may find yourself with seasonal down times. During these times, you may be looking for ways to bring in extra income and keep your business thriving. In some cases, this means turning to a smaller job. However, one way you can bring in some additional income is to hire out your industrial equipment that is not in use to larger companies needing it. Here is what you should consider about this option and some tips and advice related to the hiring out process:

Have Insurance on the Equipment

The first thing you should do is have insurance on the equipment. Some of your equipment may already be insured, but you want to make sure that you have all the equipment insured. You want to make sure that you can replace or repair the equipment if something happens. You also want to make sure it is insured for other businesses or people outside of your business to use the equipment. The types of insurance available for this type of equipment hire may vary depending on your area.

Have a Contract that Covers Repairs, Replacements, and Damages

When you first start hiring out your industrial equipment, you may think of contracts between yourself and the customer. You need to go a step further and make sure that you cover repairs, replacements and damages. This could mean covering fees for damages if they occur, what will happen if repairs or needed, and if a replacement will be offered if necessary. You may also want to cover what damages and repairs will not be covered as part of the hire contract. This type of contract may need to be created with the help of a lawyer or with a notary present. 

Have a List of Included Items on the Contract

One way to make sure that both you and the customer understand the equipment hire contract and what is included is to create an itemized list. This list should list the equipment, any extra options such as insurance or replacements, and any safety equipment that may be included. This could be a list that requires a signature or initial beside each itemized item when the hire contract first starts and when the equipment is returned. This can ensure that both parties know what was given out and what was returned to avoid late fees and missing parts or equipment.

By keeping these tips and advice in mind, you will make it easier to hire out industrial equipment for your business. Keep in mind this may be something you would want to do seasonally, but it can move into a long-term option as well.