It's a great time to review the cost of your insurance.
I know many of you have multiple-year contracts for your general and liability insurance, but don't hesitate to shop it right now. Many rental companies have probably reduced the size of their fleets and revenues are down considerably. So, it could be time to take a very close look at reducing the consistently high cost of insurance. And I would recommend you shop your insurance with companies that specialize in the rental industry or at least in the equipment industry.
We just worked with a client on a debt restructure and made the recommendation to review all of their insurance costs. Following an in-depth evaluation, changes were made and the company's annual insurance cost was reduced by $164,000 per year with additional coverage.
Remember - your total insurance cost should be around 3.5 - 3.9% of your pure rental revenue. If you are looking for some leads on insurance companies, just email me your contact information and I'll send you a short list of potential insurers for your consideration.
Contact Mike Farley at firstname.lastname@example.org.