Summary/TL;DR
When renting construction equipment, you need insurance to cover liability, theft, and damage. Common policies include general liability, rental insurance, contractor’s equipment coverage, and builder’s risk insurance. Certifications like Excavator Rentals Certification and Scissor Lifts Rentals Certification reduce risks and help with insurance claims. NAM Rentals supports safe, insured rentals across the GTA by providing certified operators, well-maintained machines, and clear rental policies.
Introduction
Renting construction equipment is one of the smartest ways to complete projects without the heavy burden of ownership costs. Contractors, builders, and even homeowners in Toronto and the GTA rely on rented excavators, scissor lifts, forklifts, and other machinery for everything from small landscaping jobs to large-scale construction.
But here’s the question that often gets overlooked: what insurance do you need for rented equipment?
Without the right coverage, one accident or theft could leave you paying thousands out of pocket. Insurance isn’t just paperwork – it’s the shield that protects you, your workers, and your project.
This guide breaks down all the insurance types you should consider, how certification impacts coverage, and how NAM Rentals helps clients stay safe and compliant.
Why Insurance Matters for Rented Equipment
- Financial protection: Repairing or replacing heavy equipment can cost anywhere from $25,000 to over $200,000. Insurance cushions you against these expenses.
- Legal compliance: Ontario’s construction laws require employers to provide a safe work environment, which includes insured equipment.
- Client confidence: Insured contractors are more attractive to clients and more likely to secure projects.
- Peace of mind: Knowing you’re covered allows you to focus on completing the job.
For a deeper look at construction risk management, see the Government of Ontario’s health and safety resources.
Types of Insurance for Rented Equipment
General Liability Insurance
Covers third-party injuries and property damage caused by the equipment.
- Example: If a rented excavator knocks over a fence on a client’s property, liability insurance covers the repair costs.
- Who needs it? Every contractor, no exceptions.
Learn more at the Insurance Bureau of Canada.
Equipment Rental Insurance (Renter’s Coverage)
Covers theft, vandalism, or damage to the rented equipment itself. Many rental companies offer this, but it may be more cost-effective to add it to your existing policy.
- Example: If a scissor lift is damaged by severe weather, this policy helps cover replacement or repairs.
Contractor’s Equipment Insurance
Extends coverage to both owned and rented equipment, whether it’s in use, in transit, or stored onsite.
- Best for: Contractors with multiple projects who frequently rent different machines.
Builder’s Risk Insurance
Covers the project itself, including materials and equipment-related damages.
- Example: If a construction site fire damages rented machinery, builder’s risk coverage can help.
Commercial Auto Insurance
If you’re transporting rented equipment like trailers or trucks carrying excavators, commercial auto coverage is required.
- Example: A traffic collision while hauling a mini-excavator on a flatbed.
Certification and Insurance: The Connection
Insurance providers often require operators to be certified. If equipment is used by an uncertified operator and an accident occurs, claims can be denied.
“Excavator Rentals Certification ensures operators are trained and competent, reducing liability and meeting Ontario’s Occupational Health and Safety Act requirements.”
“With Scissor Lifts Rentals Certification, renters prove they can safely use aerial platforms, protecting both workers and insurers from preventable accidents.”
“Construction Equipment Rentals backed by certified operators and proper insurance give contractors confidence that every project is compliant and protected.”
These certifications demonstrate professionalism, which strengthens insurance claims by proving due diligence.
For Ontario-specific training and standards, check Infrastructure Health & Safety Association (IHSA).
Who Should Carry the Insurance?
- Contractors: Usually responsible for insuring rented equipment on job sites.
- Homeowners: May need to add temporary coverage or request operator-inclusive rentals.
- Employers: Must ensure every operator is both certified and insured.
How NAM Rentals Supports Safe & Insured Rentals
At NAM Rentals, serving Toronto, Vaughan, Mississauga, Scarborough, and the wider GTA, we don’t just rent equipment – we provide solutions.
- Certified Operator Options: If you don’t have certification, we supply trained professionals.
- Transparent Policies: We explain insurance responsibilities before you rent.
- Well-Maintained Equipment: Regular inspections reduce breakdown risks.
- Flexible Rentals: Daily, weekly, and monthly options to fit every project.
Whether you’re renting a mini-excavator for a backyard dig or a scissor lift for a commercial build, NAM Rentals ensures you’re covered with both certification and insurance support.
FAQs: Insurance for Rented Equipment in Toronto & Ontario
- Do I need insurance to rent construction equipment in Ontario?
Yes. Most rental companies require insurance for liability, damage, and theft before releasing equipment. - What type of insurance covers rented excavators?
Contractor’s equipment insurance or rental protection policies cover excavators. Certification also strengthens claims. - Does NAM Rentals provide insurance directly?
NAM Rentals guides renters, but customers are expected to carry their own coverage or add a rider to existing policies. - Can I rent equipment without certification if I have insurance?
No. Certification and insurance are separate requirements. Insurance alone doesn’t allow uncertified operation. - How much does equipment rental insurance cost in Ontario?
Costs vary, but expect $25–$75 per day or a percentage of equipment value. - Does general liability insurance cover rented machinery?
It covers third-party injury or property damage but not damage to the machine itself. - What happens if rented equipment is stolen?
Insurance usually covers theft, provided you followed security guidelines (locks, fencing, etc.). - Is scissor lift rental covered by regular business insurance?
Not always. Many insurers require Scissor Lifts Rentals Certification and an equipment rider. - Do homeowners need insurance to rent equipment?
Yes. Homeowners should add temporary coverage or rent with a certified operator. - What insurance applies if equipment is damaged during transport?
Commercial auto insurance or transit coverage is required. - Can I use my company’s contractor insurance for rented machines?
Often yes, but confirm your policy includes rentals – many require an endorsement. - What if my insurance doesn’t cover rented equipment?
You can purchase short-term rental insurance directly from the rental company. - Does builder’s risk insurance cover rented equipment?
It may cover equipment if it’s damaged by a site-related event (fire, flood, vandalism). - Do I need both certification and insurance to rent excavators?
Yes. Certification proves competency; insurance covers financial risks. - Are mini-excavators treated differently for insurance?
No. Whether mini or heavy-duty, all excavators require insurance and certification. - Can I add rental coverage to my existing insurance policy?
Yes. Most insurers allow adding a rider for temporary equipment rentals. - Will my insurance claim be denied if the operator isn’t certified?
Likely yes. Uncertified operation is grounds for denial under OHSA regulations. - Do short-term rentals require insurance too?
Yes. Even one-day rentals must be insured against liability and damage. - Is damage from misuse or negligence covered?
No. Insurance covers accidental damage, not reckless or uncertified use. - How does certification impact insurance premiums?
Certified operators lower risk, which can reduce premiums or strengthen claims. - Can NAM Rentals supply a certified operator with insurance included?
Yes. NAM Rentals offers operator-inclusive rentals where you only need liability coverage. - Is insurance mandatory for scissor lift rentals in Ontario?
Yes. Along with certification, liability and damage coverage are required. - Does insurance cover breakdowns due to wear and tear?
No. Maintenance is the rental company’s responsibility, not insurance. - Can students or trainees rent equipment under insurance?
Only if supervised by a certified operator and covered under the company’s policy. - What’s the difference between rental insurance and contractor’s equipment insurance?
Rental insurance only covers the rented machine; contractor’s equipment insurance covers both rented and owned machinery.
Conclusion
Insurance for rented equipment is not optional – it’s a critical safeguard against financial loss, liability, and legal issues. Pairing insurance with operator certification ensures maximum safety and compliance on every project.
At NAM Rentals, we combine high-quality construction equipment with certified operators and clear insurance guidance. Whether it’s an excavator, scissor lift, or other heavy machinery, we help clients across the GTA complete their projects safely, efficiently, and with peace of mind.
