Rental Protection Plan
Terms & Conditions
The Lessor hereby offers an optional Rental Protection Plan (the “RPP”) to reduce the Lessee’s financial liability during their rental of the Equipment, pursuant to the terms of the lease agreement entered into between the Lessor and the Lessee (the “Lease”).
The Lessee is responsible for the safekeeping, condition and repair of the Equipment and may be liable for any Equipment, which is lost, stolen, or damaged during the rental period. For all Equipment not licensed for road use, the Lessee must either purchase the RPP or provide proof of insurance in accordance with clause 16 of the Lease.
The RPP is a contractual modification of the Lessee’s liability.
All the following Conditions must be satisfied for the RPP and the corresponding Reduction of Liability (defined below) to apply (collectively, the “Conditions”):
- the Lessee must accept the terms of the RPP by signing below prior to the Term, as defined in clause 1 of the Lease;
- the Lessee must pay a non-refundable fee of ten (10%) percent of the rental charges for the Equipment;
- the Lessee must fully comply with the terms of the Lease;
- the Lessee’s account must be in good standing as of the time of the loss; and
- the damage must not be the result of any of the Exclusions (defined below).
If the Conditions are satisfied at the time of the loss, the Lessor shall limit the amount the Lessor collects from the Lessee for Equipment damage, loss, or destruction to the following amounts (the “Reduction of Liability”):
- up to a maximum of fifty ($50) dollars per tire for tire repair;
- ten (10%) percent of the manufacturer sales list price for the lost or stolen Equipment, up to a maximum of five hundred ($500) dollars per piece of Equipment;
- ten (10%) percent of the repair charge for accidental or incidental damage to the Equipment, up to a maximum of five hundred ($500) dollars per piece of Equipment; and
- no charge for downtime that would accrue during the period when the damaged, lost or destroyed Equipment is being repaired or replaced.
The RPP plan is not insurance and does not protect the Lessee from liability to the Lessor or other third parties arising out of the possession, control, or use of the Equipment, including but not limited to personal injury, or damage to other property. The Reduction of Liability only limits the liability relating to the damage or loss of the Equipment itself and does not affect any other form of liability of the Lessee resulting from this Lease.
The RPP does not cover damage resulting from any of the following exclusions (collectively, the “Exclusions”): misuse, or abuse of the Equipment, negligent acts or omissions by the Lessee, failing to maintain the Equipment, improper servicing, damage sustained during transport (including damage sustained while loading or unloading the Equipment except when transported by the Lessor), or any loss resulting from a breach of any terms of the Lease, including failing to protect the Equipment from theft, loss or damage. All damage resulting from the Exclusions remain the liability of the Lessee and are not modified by the RPP.
Notwithstanding anything in the Lease, if lost Equipment is later recovered, the Lessor retains ownership of the Equipment regardless of any payments made by the Lessee or the Lessee’s insurance company with respect to such Equipment, all of which payments are non-refundable. The Lessee agrees to promptly return any Equipment that is recovered. The Lessor shall be subrogated to the Lessee’s right to recover against any person or entity relating to any loss, theft, damage, or destruction to any of the Equipment. The Lessee shall cooperate with and assign to the Lessor all claims and proceeds arising from such loss, theft, damage, or destruction, execute and deliver to the Lessor whatever documents are required and take all other necessary steps to secure the Lessor such rights, at the Lessee’s expense.
The capitalized terms in the RPP that are not defined herein shall have the same meaning given to such terms in the Lease.