The Costly Impact of Rental Equipment Theft
When it comes to equipment, often, renting is preferable to buying. When you rent equipment for a large project, you don’t have to make a heavy capital investment, making it easier to stay within your projected budget. Plus, you can try out large equipment before you buy.
But renting does not come without risk. Rental equipment theft is a growing problem in all industries, including manufacturing, construction, trucking, freight, and warehousing. Companies that rent equipment often neglect to take the proper security precautions because they think “Not my equipment, not my problem.” It may not be your equipment that gets stolen, but it becomes your problem fast once it’s gone.
Insurance won’t always save you
So you have insurance on your rental equipment, but will it save you in case of a theft at your location? Maybe and maybe not. You may have to pay a hefty deductible before insurance kicks in, and you can expect your insurance rates to increase if you file a claim – further limiting the cost-effectiveness of renting equipment.
“One large insurance claim can raise your deductible as much as 20%.”
Rental theft costs more than what is stolen
When your rental equipment is stolen, you lose more than the cost of the equipment or your insurance deductible. Stolen equipment can lead to project delays, missed deadlines, reputational damage, and lost revenue due to canceled contracts and downtime.
Why rental equipment is so hot on the underground market
Rental equipment is expensive – that’s why you choose to rent instead of buy. And that high price point carries over into the underground market, making it a hot target for thieves.
“The average value of stolen rental equipment is $29,000.” – National Equipment Register
Rental equipment is also relatively easy to steal. Most companies regularly leave their equipment outside, unattended, overnight or during holiday weekends like Memorial Day and Labor Day. The motivation to steal heavy equipment is high, and the barrier to being able to steal it is low. This is a dangerous combination. Thieves know that the equipment will be left unattended for weekends or holidays, so they can plan their heist weeks in advance to gain an advantage, especially if they know your perimeter security system is relatively easy to breach, like a chain link fence that’s easy to cut.
“Theft accounts for 50% of all heavy equipment losses, higher than collision, fire and vandalism.” – Equipment World Magazine
Top targets for rental equipment theft include:
- Skid Steers
- Utility carts and vehicles
Here are five ways to reduce the risk of rental equipment theft
While there’s no way to completely eliminate your risk of being the victim of rental equipment theft, there are several ways to protect your rental equipment from thieves.
- Install a fence that actually keeps thieves out – A chain link fence is easily breached with a pair of bolt cutters. A wooden fence can be taken down with a hammer. If you’re serious about keeping thieves off your property, invest in an electric fence that keeps thieves out no matter how motivated they are.
- Light up your property – Bright light is a psychological deterrent that destroys one of thieves’ largest assets – the cover of darkness.
- Use a management tracking system – Use a management tracking system to keep track of who is on your property and where the keys to your vehicles and equipment are at all times to protect yourself from internal theft and human errors that leave your organization vulnerable to theft.
- Install video surveillance cameras – Not only does having a video surveillance system work as a psychological deterrent to crime, but it can also help you catch equipment thieves and recover your stolen property.
- Hire security guards – Security guards protect your site outside of business hours to reduce your rate of theft. There are some drawbacks as well, click here to find out more.
Are your security measures as solid as you think they are?
Let the security experts at AMAROK analyze your current security system with a Free & Customized Threat Assessment. We’ll look at your current security plan to uncover any hidden vulnerabilities, plus help you make a plan to keep your business safe. Schedule your free Threat Assessment today.