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What is 'Loss of Use' insurance and why is it critical for crane rental firms?

LEGAL-503 · Liability
Loss of Use insurance covers revenue lost when cranes are damaged and cannot generate rental income during repairs.
Loss of Use insurance protects crane rental companies from financial losses when equipment is damaged in accidents, breakdowns, or covered perils that prevent the crane from being rented. This coverage pays for the daily rental income lost during the repair period, typically calculated based on the crane's established rental rate and historical utilization percentage.
Reference: Insurance Services Office (ISO) Commercial Property Coverage Forms CP 15 10 and CP 15 15
Remember: "Down Crane = No Rain" (when crane is down for repairs, no revenue rain falls)

Keywords

loss of use insurancecrane downtime coveragerental business risk

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