A local rental store had a trailer-mounted welder out on a long-term rental. The customer made his monthly payments for some time and then a check bounced and he stopped paying his bill. The store tried to contact the renter, but he ignored the store’s requests to either pay the rental bill or return the welder and trailer. The renter could not be found and neither could the equipment.

The rental store turned in a claim to its insurance company, who investigated the loss and then paid the store for a replacement welder and trailer. The store had to pay its deductible and also lost revenue from the back rent due to them by the customer. The insurance company began pursuing the customer for the claim payment and the store’s deductible, but the renter was very difficult to locate.

Two years later, the renter called and said they had “lost track” of the welder and trailer and wanted to discuss restitution. The renter claimed to have just recently “found” the equipment for sale at an auction and had acquired it again. The renter was put in touch with the insurance company’s recovery department to work out a settlement plan.

This item, provided by ARA Insurance Services, Kansas City, Mo., is the story of a real-life insurance claim involving a rental store and is intended to help readers better understand and manage risk. For more safety and risk management information, customers of ARA Insurance Services can log on to ReSource. Access is free, so if you haven’t signed up yet, contact your agent or call 800-821-6580.