RENTAL EQUIPMENT PROTECTION (“REP”) ADDENDUM
THE FOLLOWING TERMS AND CONDITIONS APPLY TO ALL REP BENEFITS PROVIDED TO CUSTOMERS (“LESSEES”) OF BIG ORANGE RENTAL, INC., A FLORIDA CORPORATION (ALSO REFERRED TO HEREIN AS “BIG ORANGE,” “BOR,” “LESSOR,” “WE,” “US” AND “OUR”)
You, the “Customer” or “Lessee,” are responsible for protecting all items rented to you (hereinafter, “Rented Item(s)”) by BOR under the terms of your Rental Contract from any and all loss, theft and damage. Except as provided below, if any Rented Item(s) is/are lost, stolen, or damaged during your rental, you will be responsible to BOR for all costs associated with repairing, restoring and/or replacing such Rented Item(s). You may also be responsible to BOR for additional charges during the period required to repair, restore or replace any Rented Item(s) which is/are lost or damaged, and/or the loss in value of such Rented Item(s). If: (a) we make our Optional Rental Equipment Protection (“REP”) plan available; and (b) you (i) accept it (as provided below); and (ii) fully and timely pay to BOR the non-refundable REP Fee reflected in your Rental Contract prior to commencement of your rental, then to the extent set forth below, BOR agrees to waive certain claims against you arising from physical damage to any Rented Item(s) covered by REP (hereinafter, “Covered Item(s)”), subject to the remaining terms hereof. You will otherwise remain liable for 100% of all loss, theft, and damage to the Rented Item(s) as well as all other amounts due and coming due under the Rental Contract.
REP IS OPTIONAL AND MAY BE DECLINED IF AND ONLY IF YOU PROVIDE TO BOR PROOF OF THE PROPERTY DAMAGE / INLAND MARINE INSURANCE REFERENCED IN SECTION 9 OF YOUR RENTAL CONTRACT PRIOR TO COMMENCEMENT OF YOUR RENTAL.
REP IS NOT INSURANCE, NOR IS IT A WARRANTY. REP is a partial waiver of our claims for physical damage to or destruction of only Covered Item(s). It does not cover other types of damages and/or costs, such as cleaning, maintenance, excessive wear and tear and/or loss of or damage to other (non-covered) item(s), including without limitation intellectual property (“I.P.”) and/or data. If REP has been offered by BOR and you have paid the Non-Refundable REP Fee set forth on Page 1 of your Rental Contract for each rental period, then subject to the remaining terms hereof, including without limitation the “Exceptions and Exclusions” set forth below, BOR will waive its right to recover from you 80% of its cost(s) (hereinafter, “Repair/Replacement Costs”) to repair or, at BOR’s option, replace Covered Item(s) which suffer physical damage of up to $500,000 during the rental term set forth in your Rental Contract (the “Term”); provided however, that, for each Term: (a) you will remain liable to BOR for:
(i) a “deductible” of $1,000 in each case; and (ii) all Repair/Replacement costs which exceed $500,000 in the aggregate across all Covered Item(s); (b) you must notify BOR in writing of any accident, loss or damage of or to Covered Item(s) within 24 hours thereafter; (c) you must provide BOR with documentary evidence of the nature and cause(s) thereof; (d) you must immediately return the subject Covered Item(s) to BOR, unless we elect to forego such return (in our sole discretion); and (e) you must
continue to comply fully with the terms of your Rental Contract, by among other things, fully and timely paying all amounts due and coming due to BOR thereunder. Exceptions and Exclusions: REP does not provide coverage for: (i) liability; (ii) personal and/or bodily injuries; (iii) non-physical damage (such as contamination and data losses); (iv) cost(s) such as cleaning; (v) maintenance; (vi) excessive wear and tear; and/or (vi) loss of or damage to any Item(s) subject to one or more of the following Exceptions and Exclusions. Anything to the contrary contained herein or in the Rental Contract notwithstanding, the following are NOT COVERED by REP, and you, the “Customer” or “Lessee,” will remain 100% liable for:
(a) Item(s) Not Covered: (I) GPS and telematics systems, on-road and passenger vehicles, I.P., data, batteries, glass, tires, tubes, tracks, belts, fittings, chains, knobs, cords, cables, tanks, hoses and other accessories in or on any Rented Item(s); (II) Rented Item(s) with respect to which you do not pay the non-refundable REP Fee prior to commencement of your rental (as provided on Page 1 of your Rental Contract) for each rental period (i.e., for the Initial Term, and separately, for any extension period(s) approved by BOR); and (III) any and all loss, damage and/or destruction exceeding $500,000 in the aggregate across all Covered Items;
(b) Deductible: The “deductible” described above (Note: If you fail to promptly pay the deductible, REP will be void, and you will be responsible for 100% of any damage to Item(s) that would otherwise have been covered by REP);
(c) Violations / Breaches: Loss of or damage to Covered Item(s) due to violation by you, your agents, employees or contractors, of any of the terms of your Rental Contract, this Addendum, any applicable laws, rules, regulations, policy(ies) of insurance, and/or any “Instructions” as defined in your Rental Contract (including without limitation, any instructions and/or warnings provided by manufacturer(s), as well as EPA Tier 4, cleaning, servicing, maintenance, repair and silica dust requirements), specifications and/or warnings provided by BOR, the owner(s) and/or the manufacturer(s) of such Item(s);
(d) Misuse, Abuse, Neglect: Loss of or damage to Covered Item(s) due to intentional abuse, improper use, negligence, willful misconduct, vandalism, neglect, submerging, overloading, overturning, damage by falling objects, striking overhead objects, and/or exceeding the rated capacity(ies) of such Item(s); (e) Failure to Return / Criminal Activities: (I) Any failure to return Covered Item(s) to BOR, including without limitation, loss, theft and disappearance, in whole or in part (including any theft(s) of engines, components, parts and/or attachments), unless we elect to forego such return as provided above; and (II) criminal, fraudulent, dishonest and/or illegal act(s) or omission(s);
(f) Maintenance Failures: Damage to Covered Item(s) resulting from any failure to properly service and/or maintain such Covered Item(s) (including without limitation, failure to maintain proper pressure levels or proper levels of air, water, or manufacturer-approved oil, fuel, lubricants, hydraulic fluid, diesel exhaust fluid, brake fluid and/or coolant);
(g) Protection / Security: Loss of or damage to any Covered Item due to failure to secure and/or protect it (e.g., by leaving it in an unprotected area, leaving it unlocked or with the keys in the ignition, etc.);
(h) Governmental Authority / War / Terrorism: Damage to or loss of or to any Covered Item resulting from or in connection with: (I) action(s) or inaction(s) of any governmental or other civil authority; and/or (II) civil insurrection, act(s) of war and/or terrorism;
(i) Transportation: Damage or loss of or to any Covered Item during transportation;
(j) Use of Drugs / Alcohol: Damage or loss of or to any Covered Item resulting from or in connection with the use of alcohol or drugs (including without limitation, CANNABIS, even if legalized) by you or anyone employed or engaged by you, or anyone you permit to use or otherwise deal with any Rented Item(s); (k) Electric Current: Damage caused by electric current (including without limitation, use of non-utility generated power);
(l) Hazmat / Contamination: Loss of or damage to any Covered Item resulting from: (I) its exposure to hazardous, explosive, combustible, radioactive, toxic, corrosive, or noxious materials or substances; (II) nuclear hazard; (III) temperature/humidity; and/or (IV) contamination, including mold, mildew, rust, rot and/or exposure to pollutants and/or contaminants; and
(m) Third Parties / Sublessees: Any Item(s) damaged while being used, operated, occupied, or otherwise dealt with by any third party(ies) not specifically identified in/on your Rental Contract as “authorized users” (including without limitation, unauthorized [by Lessor] borrowers, sublessees and assignees). This Addendum shall be deemed to modify and supplement and shall be deemed incorporated into and become a part of your Rental Contract. To the extent any of the terms of this Addendum conflict with the terms of your Rental Contract, the terms of this Addendum shall control. Your Rental Contract shall otherwise remain valid and in full force and effect, and all terms thereof will be deemed incorporated herein.
IMPORTANT: REP DOES NOT BENEFIT ANYONE OTHER THAN YOU, THE “CUSTOMER” OR “LESSEE” (SUCH AS BORROWERS, SUBLESSEES, REAL PROPERTY OWNERS, OTHER INSURERS, CONTRACTORS, INVITEES, AND OTHER THIRD PARTIES). WE AND OUR INSURER (THROUGH SUBROGATION) RETAIN THE RIGHT TO PURSUE RECOVERIES FROM THIRD PARTIES, INCLUDING YOUR INSURER, FOR ALL LOSS AND DAMAGE, WHETHER OR NOT COVERED BY REP. YOU MAY DECLINE REP IF YOU PROVIDE TO FCE PROOF OF THE PROPERTY DAMAGE / INLAND MARINE INSURANCE REFERENCED IN SECTION 9 OF YOUR RENTAL CONTRACT PRIOR TO COMMENCEMENT OF YOUR RENTAL. NONETHELESS, NO REP COVERAGE WILL APPLY TO ANY ITEM(S) FOR WHICH YOU DO NOT TIMELY PAY THE APPLICABLE REP FEE.
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RENTAL EQUIPMENT
PROTECTION (“REP”) GUIDE
1. YOUR RESPONSIBILITIES.
Rental customers or “lessees” are generally responsible for ALL COSTS AND EXPENSES ARISING IN CONNECTION WITH ANY LOSS, THEFT, DAMAGE TO OR DESTRUCTION OF RENTED ITEM(S) regardless of whether the rental customer or lessee was at fault. This can amount to thousands of dollars in additional expense, even for rental customers who maintain insurance (e.g., for deductibles, coverage limits, exclusions, etc.).
2. WHAT IS REP?
BOR’s Rental Equipment Protection (“REP”) plan ENABLES OUR CUSTOMERS TO LIMIT THEIR EXPOSURE TO MANY CLAIMS for physical damage to or destruction of “Covered Item(s)” when a covered loss occurs through no fault of the customer. REP IS NOT INSURANCE, NOR IS IT A WARRANTY.
REP is OPTIONAL if and only if:
you provide the Physical / Property Damage Insurance referenced in Section 9 of your Rental Contract.
3. WHAT DOES REP COST?
The fee for REP (if offered) is the percentage (of the Rent) charged for REP set forth on Page 1 of your Rental Contract solely with respect to Covered Item(s). No REP Fee is applied to purchases, delivery charges, fuel, or tax. All REP fees are non- refundable.
4. HOW DOES REP WORK, AND WHAT DOES IT COVER?
In exchange for your purchase of REP, BOR agrees to waive its claims against you and your company for a portion of the charges identified in Section 5 of this Rental Equipment Protection Addendum with respect to Covered Item(s), enabling you to spend your valuable time and money on your business.
5. THE VALUE OF REP.
Our REP Program enables you to avoid costly downtime and expensive repairs and/or replacements by:
(a) Covering:
(i) Repair/Replacement Costs: A portion of the cost of repairing and/or replacing Covered Item(s) which suffer physical damage during your rental (subject to the limitations set forth in Section 6 below and the reverse side or Page 1 hereof); AND
(ii) Rental Charges: 100% of the Rent that would otherwise be due under your Rental Contract during the period in which the Covered Item(s) is/are being repaired or replaced (as applicable); AND
(iii) Certain Other Costs: 100% of the following charges that would normally be due under your Rental Contract: late fees, transportation and storage fees and interest; AND
(b) Enabling You to Avoid Costly Insurance Claims and Premium Increases: Costly insurance premium increases may be limited or avoided because in many cases, customers are able to avoid filing claims on their own insurance policies (increasing their “loss histories”).
6. WHAT IS NOT COVERED?
Following is a summary of what REP will not cover (See Page 1 hereof for more details regarding exceptions, exclusions and other important terms): • Item(s) subject to any of the “Exceptions and Exclusions” set forth on Page 1 hereof;
7. HOW DO I USE REP?
If a Covered Item is damaged or destroyed (an “Event of Loss”) during your rental, you must advise us of the date, time and suspected cause of the Event of Loss in writing within 24 hours. In the event of a reportable accident or vandalism, you must also properly complete and file a police report with local authorities. A copy of the police report must be provided to us within 48 hours after the Event of Loss. You will be 100% responsible for any Event of Loss which is not covered by REP (e.g., for any Rented Item(s) which you elected not to cover and for Covered Item(s) with respect to which any exclusion(s) referenced in this Rental Equipment Protection Addendum (including Page 1 hereof) apply(ies)).
8. HOW CAN I AVOID PAYING FOR REP?
REP is not mandatory; it isOPTIONAL. If you wish to decline REP, you must provide us with proof that you have the property damage/inland marine insurance required under Section 9 of your Rental Contract. NO REP COVERAGE WILL APPLY TO ANY ITEM(S) FOR WHICH YOU DO NOT PAY THE APPLICABLE REP FEE (WHICH, IF CHARGED, WILL BE SET FORTH IN YOUR RENTAL CONTRACT).