When you’re a New York contractor working on a job site, it’s inevitable that you’ll need to rent equipment from time to time. From excavators and scissor lifts to bulldozers and cranes, equipment rentals are a routine part of doing business. But what many contractors don’t fully understand is how liability insurance works when rented equipment is involved — and what their policies do and don’t cover.
A frequent question we hear at BGES Group from contractors is this:
“If I rent an excavator from an equipment rental company and they drop it off at my job site, am I covered under my General Liability policy if someone gets hurt or property is damaged?”
It’s a smart question — and the answer requires a little unpacking, especially in New York where Labor Law 240/241 exposures make liability claims more dangerous and expensive than almost anywhere else in the country. Let’s walk through how this works, what’s covered, what isn’t, and whether or not you need additional coverage like Hired & Non-Owned Auto Liability.
How a Contractor’s General Liability Policy Responds to Excavator Use
First, it’s important to understand that a contractor’s Commercial General Liability (CGL) policy is designed to cover bodily injury (BI) and property damage (PD) to third parties arising out of the contractor’s operations. This includes accidents caused by the contractor’s use of equipment on a job site — whether it’s owned or rented.
So if you rent an excavator and, while operating it, accidentally knock over a fence on a neighboring property or cause debris to fall and strike a pedestrian walking by, your General Liability policy would typically respond to cover that claim, subject to policy limits, exclusions, and conditions.
However — and this is a big however — the GL policy does not cover damage to the rented excavator itself. Why? Because most GL policies include a “Care, Custody, or Control” exclusion, which means that once you take possession of a piece of rented equipment, any physical damage to it while in your control is not covered by your GL policy.
To protect yourself against that exposure, you need to carry Rented Equipment coverage under your Inland Marine (equipment floater) policy or purchase a damage waiver from the rental company when you rent the equipment.
Who’s Responsible During Delivery?
Another detail contractors often overlook is who’s responsible during the delivery of the equipment. If the rental company is transporting the excavator and something happens — for example, the equipment falls off the trailer and damages a vehicle, or a passerby is injured while it’s being unloaded — the rental company’s insurance is on the hook, not yours.
Your responsibility begins once the equipment is delivered, unloaded, and accepted at your job site. From that point on, any third-party bodily injury or property damage arising from your use of the equipment would be your liability.
Do You Need Hired & Non-Owned Auto (HNOA) Coverage?
Here’s another common question:
“Do I need Hired & Non-Owned Auto Liability coverage for this rental?”
The answer is typically no — but with an important caveat.
Under standard ISO General Liability policy language, excavators, bulldozers, backhoes, and other construction machinery are classified as ‘mobile equipment,’ not ‘autos.’ This means that as long as the excavator is being used on a job site, it falls under your GL policy for BI and PD claims involving third parties.
However, if you were to drive that excavator under its own power on a public roadway — say, moving it from one job site to another down the street — it may be classified as an “auto” under New York law and under your insurance policy. And here’s where Hired Auto coverage would become necessary.
Hired & Non-Owned Auto (HNOA) Liability covers liability arising out of the use of vehicles you hire, rent, or don’t own (like a rented truck or an employee’s personal vehicle used for company business).
While it wouldn’t typically apply to an excavator being used on-site, if that equipment is driven on a public road under its own power, your General Liability policy may exclude coverage, and you’d need either:
- Hired Auto Liability coverage, or
- An endorsement that extends coverage for this situation.
The good news is — most contractors don’t drive excavators on public roads. Typically, the rental company delivers and picks up the equipment using flatbed trucks, meaning no HNOA coverage is needed for this exposure. But it’s always smart to check the terms of your policy and your rental agreement to be sure.
Risk Management Tips for New York Contractors
If you’re a contractor in New York, where labor law claims and high-limit lawsuits are the norm, you can’t afford to leave your insurance program to chance. Here are a few quick tips:
- Confirm that your General Liability policy properly covers your operations and mobile equipment use.
- Carry Rented Equipment coverage on your Inland Marine policy with limits high enough to replace any equipment you might rent.
- Review rental contracts carefully, paying attention to indemnity and hold harmless clauses.
- Verify that the rental company’s insurance covers delivery and pickup.
- Maintain Hired & Non-Owned Auto Liability coverage for other potential exposures, like rented trucks or employees using personal vehicles.
How BGES Group Can Help
At BGES Group, we specialize in insuring New York and Tri-State area contractors. We understand the unique exposures you face — from complex labor law risks to the challenges of insuring heavy equipment and managing insurance certificates for job site compliance.
We’re not your average broker. At BGES Group, we provide:
- Access to contractor-specific insurance programs
- Expert advice on General Liability, Umbrella, Workers’ Compensation, Inland Marine, and HNOA coverages
- Risk management guidance and policy reviews
- Fast, reliable service when you need certificates or help dealing with rental companies and job site requirements
We work with contractors of all sizes and trades, and whether you’re a small residential GC or a large commercial builder, we can tailor a program that fits your needs and protects your business.
Contact BGES Group Today
If you’re a contractor in New York, New Jersey, or Connecticut and want to make sure your insurance program is working for you — not against you — give us a call.
📞 Gary Wallach
Phone: 914-806-5853
Email: bgesgroup@gmail.com
Website: www.bgesgroup.com
Let’s talk about how we can help protect your business better, for less.