The responsibility of equipment dealers in ensuring product and user safety varies across situations, states, and courtrooms, but judgments levied against dealers can result in multi-million dollar claims. While accidents occur, safeguarding customers and your business is crucial. Dealers can be targets of accusations regarding negligence.
When Selling Used Equipment
• Review manufacturers’ safety recommendations.
• Perform only manufacturer-approved modifications to equipment.
• Install and inspect safety equipment prior to releasing equipment to customers.
• Inspect and use an equipment safety checklist upon intake of any used piece of equipment.
• Provide training on use of equipment.
• Include a copy of the operators’ manual for each piece of equipment.
When Renting Equipment
• Document and maintain detailed service records for each piece of rental equipment.
• Before equipment leaves your possession, inspect it and use an equipment safety checklist.
• Include a copy of the operator manual for each piece of equipment.
• When equipment is returned, inspect it and use an equipment safety checklist.
• To ensure renters’ safety, provide training on equipment usage and recommend suitable personal protective gear.
• Use equipment rental agreement forms that include hold harmless clauses and insurance requirements.
Federated® is commitment to helping clients develop loss prevention strategies, prepare training sessions, and support your organization’s risk management efforts. For assistance or more information, contact the Risk Management Resource Center at 1-888-333-4949.
This publication is intended to provide general information and recommendations for risk prevention only. The recommendations herein may help reduce the risk of loss but is not a guarantee of the elimination of any risk of loss. This is not provided as a substitute for any regulatory standards that may apply, nor should it be considered legal or other expert advice regarding your unique needs. Qualified counsel should be sought regarding questions specific to your circumstances.
Article Written by Jerry Leemkuil
JERRY LEEMKUIL is an equipment dealer specialist for Association Risk Management Services, Federated Insurance Company. For information, write to Jerry at jjleemkuil@fedins.com or call 1-507-455-5507.
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