Klochko Limited Damage Waiver Plan (KLDWP*)

Terms & Conditions
 

The Klochko Limited Damage Waiver Plan (KLDWP) is a product that modifies certain terms of the EQUIPMENT RENTAL AGREEMENT STANDARD TERMS AND CONDITIONS (Rental Terms) between Klochko Equipment Rental Co. Inc. (Lessor) and Renter/Lessee (Lessee) for the use of the rented equipment (Equipment). The Rental Terms found at  www.klochko.com/rentalterms apply here and are incorporated by this reference.  

1. Lessee’s Obligations. Lessee is responsible for the Equipment as provided in the rental agreement including the Rental Terms, including returning the Equipment to Klochko in the same condition it was received, less ordinary wear and tear. 

2. KLDWP Is Not Insurance. KLDWP is not insurance and is not a warranty. Instead, KLDWP is a product that modifies Lessee’s liability for physical damage to the Equipment under the Agreement. KLDWP does not protect the Lessee in any way from liability arising out of the use, possession, or operation of any Equipment for events such as injury, death, or damage to persons or property other than the Equipment. Insurance requirement details available at www.klochko.com/–insurance-requirements, which are incorporated by reference

3. Purchase of KLDWP. Lessee agrees to purchase the KLDWP and pay the Coverage Fee (defined below) for the specific items of Equipment rented if Lessee does not provide the insurance coverage required in the Agreement to cover the Equipment against damage at any time during the Rental Period.

4. Lapse or Expired Proof of Insurance. If Lessee chooses to provide their own insurance coverage, KLDWP coverage and charges will cease when a valid Certificate of Insurance (COI) providing evidence of the required coverage (as set forth in the Agreement) is received by Klochko.  Lessee’s COI coverage, unless the COI is received prior to the rental start date, will not be applied retroactively, regardless of the effective date on the COI.

5. Limitation of Liability. Unless Lessee purchases KLDWP, Lessee is fully responsible for the Equipment rented from Klochko. Upon Lessee’s purchase of KLDWP, and subject to these terms and conditions, Klochko will limit the amount due from Lessee under the Agreement for covered damage as follows:

(a) Lessee is responsible for 25% up to the first $2,000 in covered damage;

(b) Lessee is responsible for 50% of the next $8,000 in covered damage;

(c) Lessee is responsible for 100% of covered damage in excess of $10,000.

Klochko determination of the monetary value of Equipment or the damage and shall be binding and conclusive.

6. Conditions. For KLDWP to apply, all the following conditions must be satisfied:

(a) Lessee does not provide the insurance coverage required under the Agreement;

(b) Lessee pays Klochko the Coverage Fee for KLDWP of 14% of the gross Equipment rental charges due and owing (excluding delivery, taxes and fees), and the uncovered damage amounts specified in Paragraph 5 above;

(c) Lessee is not in breach of, and fully complies with, any and all the terms and conditions of KLDWP and the Rental Agreement;

(d) Lessee is current on its account with Klochko at the time of damage to the Equipment;

(e) Lessee notifies Klochko in writing of any lost, stolen, damaged, or destroyed Equipment within 24 hours of discovery or when reasonable discovery should have occurred; and

(f) None of the Exclusions apply.

7. Exclusions. A “Covered Event” is any damage to the Equipment other than ordinary wear and tear that is not covered by a stated Exclusion. Notwithstanding anything herein to the contrary, Lessee assumes all risk and will remain fully liable for all damage to Equipment, and KLDWP will not cover and will neither limit Lessee's Liability nor waive Klochko’s right to claim damages from Lessee, for an Event caused by, resulting from, or relating to, directly or indirectly, any of the following as determined by Klochko in its sole and absolute discretion (each “Exclusion”):

  1. Damage to tires and inner tubes caused by blow outs, cuts, gouges, punctures, and other causes.

  2. Damage caused by filling with incorrect fluid or fuel, or overfilling, failure to lubricate or service according to recommended schedule, overloading or exceeding rated capacity, and overturning.

  3. Damage caused by circumstances for which Customer cannot provide proof satisfactory to Lessor to explain what happened to damage the equipment.

  4. Damage from negligent use, misuse, or dishonesty.

  5. Damage from submersion in water, use near fire, and use for land clearing, tree removal, or demolition.

  6. Damage by user other than Lessee or its employees.

  7. Damage from theft or other criminal act by person other than Lessee or its employees unless such event was documented by police report as a result of Lessee reporting such acts within 24 hours of their occurrence.

  8. Damage caused by violation of the rental agreement.

  9. Damage that could have been avoided had the equipment been stored in a secure area.

  10. Damage from floods, winds, storms, and other acts of God.

  11. Damage from exposure from pollutants or contamination.

  12. Damage resulting from enforcement of any law.

  13. Damage that was or should have been expected due to an extraordinary application or use of the equipment, including striking an overhead object with the Equipment

 

8. Recovered Equipment. If lost or stolen Equipment is later recovered, Klochko retains ownership of the Equipment regardless of any payments made by Lessee, its insurer, or any other party with respect to such Equipment, all of which are non-refundable. Lessee agrees to promptly return to Klochko any lost or stolen Equipment that is recovered.

9. Subrogation and Assignment of Claims. If Lessee has insurance covering such loss or damage, notwithstanding this Damage Waiver, Lessee shall exercise all rights available to him under said insurance, take all action necessary to process said claim, and Lessee further agrees to assign said claim and any and all proceeds from such insurance to Lessor. Upon request, Lessee shall furnish name of his insurance agent, insurance company and complete information concerning insurance carried. 

10. Rent Accrual. Rental that would otherwise accrue under the Agreement during the period when damaged Equipment is being repaired or replaced will stop accruing upon Lessee’s payment and Klochko’s receipt of the Coverage Fee and the amount to which the damage waiver does not apply.