✅ RENTAL DAMAGE PROTECTION (RDP)

RDP Policy

1. Purpose of Rental Damage Protection (RDP)

Rental Damage Protection (RDP) is a damage protection program designed to limit a renter’s financial responsibility for eligible accidental damage that occurs during normal and intended use of rented equipment after work has meaningfully begun.

RDP is intended to address unexpected damage events during operation, not routine maintenance, normal wear, or latent mechanical failures.

RDP is not insurance and does not satisfy any state-mandated insurance requirements.

2. Cost & Coverage Limit

  • RDP is charged at 10% of the rental subtotal, excluding delivery, taxes, and non-rental services.

  • RDP limits the Lessee’s financial responsibility to $500 per piece of equipment.

  • RDP applies per piece of equipment, not per incident and not per rental agreement.

The Lessee remains responsible for:

  • The first $500 of eligible covered damage

  • Any damage exceeding the RDP cap

  • All damage excluded under this policy

3. When RDP Applies

RDP may apply only when all of the following conditions are met:

  • The equipment has been placed into service and work has meaningfully begun

  • The Lessee had a reasonable opportunity to influence the outcome

  • Damage occurs during normal and intended operation

  • The issue is promptly reported

  • There is no clear evidence of misuse, abuse, or negligence

All coverage determinations are made solely by Muncie Equipment Rentals.

4. Equipment Issues vs. Damage (MER Responsibility Events)

Certain failures may be determined by MER to be equipment-related issues, rather than renter-caused damage. These may include sudden or latent mechanical failures that occur immediately or shortly after work begins, with no reasonable opportunity for misuse.

Examples include:

  • Hydraulic hose or fitting failures shortly after operation begins

  • Electrical or mechanical failures immediately following delivery

  • Latent defects or age-related component failures

In such cases, MER may, at its discretion, address the issue as a maintenance or equipment matter. RDP is not invoked and no damage charge is assessed to the Lessee.

Nothing in this policy obligates MER to cover such failures, and all determinations remain at MER’s sole discretion.

5. Lessee Responsibilities Under RDP

To remain eligible for RDP consideration, the Lessee must:

  • Operate equipment only as intended and within rated capacities

  • Follow all manufacturer and MER operating instructions

  • Perform required daily inspections and basic maintenance

  • Immediately report any damage, abnormal operation, warning indicators, leaks, overheating, or performance issues

  • Cease operation if continued use could cause additional damage

Failure to meet these responsibilities may result in denial or voidance of RDP coverage.

6. What RDP May Cover (Examples)

When applicable, RDP may cover:

  • Accidental contact damage occurring during normal operation

  • Hydraulic hose or fitting damage occurring during use with no evidence of misuse

  • Accidental mechanical or component damage not caused by negligence

  • Damage consistent with normal operation and promptly reported

All repairs, repair methods, and cost determinations are made by MER.

7. What RDP Does NOT Cover (Exclusions)

A. Misuse, Abuse & Negligence

  • Overloading beyond rated capacity

  • Improper or unsafe operation

  • Continued use after warning indicators, leaks, or alarms

  • Failure to report issues promptly

B. Fuel & Fluids

  • Incorrect, mixed, stale, or contaminated fuel

  • Unauthorized fuel transfer or storage

  • Fuel contamination of any kind

C. Tires, Tracks & Wear Items

Normal wear items are components that are designed to wear over time through ordinary and expected use. Routine deterioration of these items is considered part of normal operation and maintenance and is addressed by Muncie Equipment Rentals as part of standard equipment upkeep.
In these cases, Rental Damage Protection (RDP) is not invoked and no damage charge is assessed to the Lessee.

Examples include:

  • Normal tread wear on tires or tracks

  • Gradual wear of cutting edges, teeth, belts, filters, and fluids

However, RDP does not cover:

  • Flat tires, punctures, or blowouts

  • Track damage resulting from improper terrain or operation

  • Damage caused by debris, rebar, nails, or jobsite hazards

 

D. Environmental & Jobsite Conditions

  • Corrosive or hazardous materials

  • Unsafe or unsuitable site conditions

  • Exposure to prohibited materials (including hot asphalt unless approved)

E. Unauthorized Actions

  • Unauthorized repairs or modifications

  • Use of unapproved attachments

  • Operation contrary to posted warnings or manufacturer guidelines

F. Loss, Theft & Abandonment

  • Theft or unexplained loss

  • Total loss or destruction

  • Equipment abandonment or failure to return

G. Administrative & Indirect Costs

  • Delivery, recovery, towing, or storage

  • Fuel, cleaning, downtime, or lost revenue

8. Voidance of RDP

RDP may be voided in full if damage results from:

  • Misuse, abuse, or negligence

  • Violation of the Rental Agreement

  • Failure to report issues promptly

  • Operation by unauthorized or impaired individuals

If RDP is voided, the Lessee is fully responsible for all costs without limitation.

9. RDP Waivers

RDP may be waived only with approved proof of insurance, including:

  • Commercial General Liability (CGL)

  • Inland Marine or equivalent coverage

Muncie Equipment Rentals must be listed as Certificate Holder.
Waivers must be approved in writing prior to equipment release.
Once waived, RDP cannot be reinstated unless reauthorized by MER.

10. Relationship to Rental Agreement

This RDP Policy is incorporated by reference into the Rental Agreement. In the event of any conflict, the Rental Agreement shall govern.