Damage Waiver — Plain English

What the Damage Waiver Is

When you rent equipment from Dragon Equipment Rentals, you take on responsibility for the machine while it's in your possession. If something goes wrong — you scrape it on a wall, you bend a tooth on a rock, you crack a window — you'd normally be on the hook for the cost of repair.

The Damage Waiver is an optional fee (12% of your rental charges) that removes most of that financial risk. Buy the waiver, and you walk away from accidental damage that occurs during normal use. Don't buy it, and you're personally responsible for the full cost of any damage.

The waiver is not insurance. It's a contractual limitation of your liability, offered as an alternative to bringing your own Certificate of Insurance.

Your Three Options at Booking

Option A — Bring Your Own Certificate of Insurance (COI)

If you already carry commercial general liability insurance through your business (most contractors do), you can provide a Certificate of Insurance instead of buying the waiver. Coverage requirements:

• Commercial General Liability — $1M per occurrence / $2M aggregate
• Dragon Equipment Rentals named as additional insured (ISO Form CG 20 10 + CG 20 37, or equivalent)
• Inland Marine or Equipment Floater — full replacement value, DER as loss payee
• Coverage primary and non-contributory; Waiver of Subrogation in favor of DER

Most commercial customers use this option because they already have the policy. Cost to add us: usually $0-$50.

Option B — Buy the Damage Waiver (Most Common for Homeowners)

Pay 12% of your rental charges as a one-time waiver fee. We absorb your accidental-damage liability (subject to the exclusions below). You don't need to involve your own insurance.

Option C — Decline Both (Roll the Dice)

You can decline the waiver and not provide a COI. In that case, you are personally responsible for the full cost of repair or replacement at replacement cost, plus loss of use, towing, and a reasonable administrative fee, charged to the credit card on file. Most people don't choose this option unless they're certain nothing can go wrong.

What the Waiver COVERS — Examples

If you bought the waiver and these happen during normal, intended use, you owe us $0:

• You scrape the side of the skid steer against a wall while maneuvering on a tight jobsite
• You bump the bucket against a concrete pad and bend a tooth
• You nick the auger bit against a buried rock
• You slightly dent the telehandler boom against a doorframe
• You crack a small piece of the operator-cab plastic during normal use

What the Waiver DOES NOT COVER

Even with the waiver, you remain fully liable for the following. These are the same exclusions found in virtually every rental contract in the industry:

• Theft, mysterious disappearance, or vandalism without a filed police report
• Tires, tubes, tracks, cutting edges, glass, hoses, batteries, and other consumable or wear items
• Overhead, underground, or over-capacity impacts — hitting power lines, striking buried utilities you didn't call 811 to locate, overloading the bucket, etc.
• Operator negligence, misuse, abuse, willful or intentional damage
• Unauthorized operators — anyone you didn't disclose as an operator at booking, or who is not trained and qualified
• Use outside the agreed jobsite or beyond the geographic area disclosed at booking
• Improper servicing, contaminated fuel, running without fluids, ignoring warning lights
• Jobsite security failures — leaving the machine unsecured overnight or in a high-risk area
• Mechanical breakdown not caused by you — those are warranty issues, not waiver issues. Call us and we'll handle it.
• Damage during transport by you (for customer-pickup rentals — your towing, your responsibility)
• Loss of accessories, attachments, or original components — auger bits, bucket pins, trencher chains, hitch pins, manuals, keys, fuel caps. These must be returned. Replacement cost will be charged to your card on file.

If Damage Happens — Report It Within 24 Hours

Whether you bought the waiver or not, you must report damage to us by phone at (702) 340-4025 or by email at [email protected] within 24 hours of when it happens, or immediately upon return if discovered then. You must also provide photographs (and, in case of theft or vandalism, a filed police report number) within 5 business days.

If you don't report timely, the waiver coverage may be voided. This isn't us being difficult — without prompt notification and photos, we can't accurately assess what happened, which makes claims hard to investigate fairly.

How the Cost Compares

Example on a 3-day Skid Steer + Auger rental at $1,125 rental charges:

• Option A (COI): $0 waiver fee — but you need to have a $1M+ GL policy already in place, plus a possible endorsement fee from your insurance agent ($0-$50)
• Option B (Damage Waiver): $135 waiver fee (12% of $1,125) — covers covered accidental damage with no out-of-pocket from you
• Option C (No waiver, no COI): $0 today — but if anything happens, you could owe $500 to $80,000+ depending on the damage

For most homeowners and small contractors without a commercial GL policy, Option B is the right answer. For commercial customers with existing insurance, Option A is usually cheaper.