ARA Insurance does more than just offer coverage
The American Rental Association (ARA) formed ARA Insurance in 1979 in response to an outcry from its membership. Property and casualty insurance costs had become unaffordable and some members couldn’t get insurance for their businesses at any cost. At the time, the insurance industry viewed the equipment rental industry as a business renting dangerous equipment to people who were unfamiliar with how to operate the machines and subsequently hurting themselves or others with them.
Once formed, ARA Insurance has never strayed from its mission of providing ARA members with the best insurance coverage with the best service at a very competitive rate. ARA Insurance has never considered insuring other industries, because the equipment rental industry is the total focus of what the company does. ARA Insurance will not abandon the equipment rental industry as some insurance companies do in their search for profits.
This single-minded focus on the equipment rental industry and ownership by ARA gives ARA Insurance a unique advantage over other insurance companies as ARA Insurance is involved in the projects, activities and committees of the ARA. Each ARA Insurance employee — from the CEO to the underwriters and the receptionist — works in a rental store as part of their training. It is important that each employee not only understand the rental risks that we insure, but also the blood and sweat that it takes to run a rental operation.
The ARA Insurance board of directors, who are appointed by the ARA board of directors, is composed of rental professionals as well as insurance professionals. The three insurance professionals on the board were selected based upon their special knowledge in insurance to represent underwriting, operations and claims. Their charge is to make sure that ARA Insurance is the best run insurance company and we are proud of the Best Practices Award presented to ARA Insurance by the Target Markets Program Administrators Association.
The rental professionals on the board ensure that ARA members are well served. They are selected to be representative of the membership, including large and small businesses, those with single and multi-locations, those in party, general tool and construction equipment rental, and geographical spread. The chairman is always a rental professional.
Independent agents are appointed to call upon rental store owners and managers in their respective stores across the country and to attend local ARA chapter meetings. They provide knowledge of local conditions that are unique to each state and offer special products and services. They must complete a course of training in order to be appointed as an ARA Insurance agent. Many of the agents have achieved a Rental Risk Advisor (RRA) designation.
ARA Insurance also is the leader in innovative coverage for the rental industry as rental dealers on the board help guide ARA Insurance on the type of coverages rental businesses need. For example, insurance companies that don’t understand equipment rental will require each piece of equipment to be scheduled or listed on the policy in order to be covered. If it is not scheduled, there is no coverage. That practice doesn’t work for those in the rental industry. With ARA Insurance, you report the value of your equipment once a year. Replacement value, not depreciated, is provided because when you lose a piece of equipment you have to pay full dollars to replace it.
ARA Insurance’s “flexible inventory replacement coverage” also means a rental store doesn’t have to replace equipment with “like kind and quality.” If a skid-steer is stolen, those insured with ARA Insurance can replace it with a mini-excavator or even a tent, up to the value of the lost equipment.
ARA Insurance is an agency, but also a program administrator that manages an insurance program for rental stores. All program administrators partner with insurance carriers that provide the insurance contract and claims administration and, in most cases, take all the risk. The difference with ARA Insurance is that it takes a majority of the risk for its program through ARA Insurance Ltd., an ARA wholly-owned reinsurance company. Taking a portion of the risk is a compelling reason for insurance carriers to partner with ARA Insurance. It also allows ARA Insurance to dictate the coverages our members need and force good claims handling practices.
A mishandled claim can haunt a company for years. All insurance companies use “experience rating,” which means poor loss experience will increase insurance costs. It is important to insure with a company that knows rental and knows how to handle rental claims. The board-level claims committee provides its first-hand knowledge to the process.
Preventing claims is where cost savings start. If all claims could be prevented, there would be little need to pay for insurance. ARA Insurance helps customers prevent claims by partnering with the ARA to provide the best in risk management products and services. The ARA member Risk Management Committee brings ideas for new safety and loss control products and services to the table each year.
Any ARA product or service with the ARA Insurance logo was brought to you by ARA Insurance. Those insured by ARA Insurance receive these products for free or deeply discounted. ReSource is ARA Insurance’s premier online risk management portal offering more than 3,400 different resources for the benefit of its insureds.
No other insurance company gives so much back to the equipment rental industry. If you are in the equipment rental industry, ARA Insurance is where you belong.
Top five reasons to insure with ARA Insurance
- ARA Insurance invests in you. ARA Insurance is the only company that channels all of its profits back into the equipment rental industry. You can benefit from the only insurance company built by rental store owners for rental store owners.
- Agents. ARA Insurance agents are local, knowledgeable, understand equipment rental store needs and can serve as a great resource.
- ReSource. ARA Insurance has developed the only rental-specific risk management library in existence, available to ARA Insurance customers online 24 hours a day, seven days a week. The site is focused on lowering a rental store’s cost of risk and is packaged for easy and efficient use.
- Owned by the American Rental Association (ARA). As a subsidiary of the ARA for more than 35 years, insuring ARA member rental businesses is all ARA Insurance does. ARA Insurance will never pull out of the equipment rental industry unlike other companies that do when they are not making enough profit for shareholders.
- ARA member-driven. ARA Insurance was built by rental owners for rental owners. It is the only insurance company owned by the ARA and directed by rental store owners. If you’re in the rental industry, ARA Insurance is working for you.