Rental Stores

What Does GL Code 16722 Cover?

ISO GL class code 16722 applies to businesses primarily engaged in renting various items to the general public or other businesses, such as tools, equipment, party supplies, and recreational gear. This code encompasses operations where the rental of goods is the primary business activity, including maintenance and minor repairs of rental items. It classifies the general liability exposures associated with the use of rented property and premises operations.

Who Uses This Class Code?

This code is utilized by a diverse range of businesses including tool rental centers, party supply rental companies, equipment rental services for construction or home improvement, recreational equipment rental shops (e.g., kayaks, bicycles), and event rental businesses.

Common GL Claims for This Class

Common GL claims for rental stores include bodily injury to customers from faulty or improperly maintained rental equipment, property damage caused by the use of rented items, and slip-and-fall incidents occurring on the rental premises.

Coverage Tips for Code 16722

• Implement robust rental agreements that clearly outline user responsibilities, liability waivers, and proper usage instructions to mitigate potential claims.
• Regularly inspect and maintain all rental equipment to ensure it is in safe working condition, documenting all maintenance to defend against product liability claims.
• Consider obtaining 'Care, Custody, or Control' coverage if your standard GL policy excludes damage to property of others while in your possession, which is common for rental items.
• In Florida, ensure compliance with all state and local regulations regarding the rental of specific equipment, as non-compliance can void coverage or increase liability.