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The great Insurance Scam

R. Gonzales

R. Gonzales

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www.riongonzales.com
I have been thinking about posting this info for some time now. Let me tell you about the great insurance scam that thieves are using to liberate your camera equipment from you.

It works like this:

Joe Evil calls you up and says he is an independent producer and he just finished a shoot but needed to rent some gear for a days worth of pick-ups. You ask where is he getting lenses from He says he is renting from a well known rental house and you check it out and find out its all true.

You agree to rent him your bran new EPIC-M/X but you need his insurance company to email or fax an insurance certificate naming you and your equipment as insured by the company. Sure enough, you get an email with the certificate with the requirements you stipulated. But wait, it seems that this guy uses the same insurance company you do (great!!). You decide to call the insurance company to confirm the certificate. They tell you everything is fine and Joe Evil has the correct insurance.

NOW THE SCAM BEGINS!!!
Joe Evil is at your door ready to pick up your camera, he’s got a bunch of stuff from the other rental company already in his car/van. You’re still a bit nervous and you ask to copy his drivers license and take an imprint of his credit card. No problem he says and freely hand over the card and license. Joe Evil promises to return your camera by 12 noon the next day and then he leaves thanking you as he drives away.

The next day you get a phone call from Joe Evil, he tells you that the shoot went well but ended really late and he had slept in. He says that he is load up and will be about 30 to 45 minutes late. An hour passes and you decided to wait another 30 min. You call Joe Evil but there is no answer, you call again, and again with the same results; no answer. You call the rental house to find out if Joe Evil has returned their lenses and they tell you the police are there and they are filing a theft report against Joe Evil.

To make this long story short you call your insurance company and explain what happened and they say-


“We are sorry for your situation but this theft is not covered under your insurance policy. In fact they have now canceled Joe Evil’s insurance.”

Let me try to explain:
This happened to a friend of mine, a RED1 owner/operator who from time to time rents his gear.

The insurance company says this is in your policy, page 66 section 7. A.
Perils Excluded
(e) loss, damage or expense caused directly or indirectly by or resulting from:
(i) misappropriation, secretion, conversion, infidelity or any dishonest act on the part of the Insured or other party of
interest, the employees or agents of the Insured or any person or persons to whom the property may be entrusted (bailees for
hire excepted);
(ii) voluntary parting of ownership or title by the Insured to any party whether from a legal or illegal transaction;
(iii) loss or shortage disclosed on taking inventory, or any mysterious disappearance.

What this means in plain English is, if you voluntarily rent, or loan your camera / equipment to someone, whether is a friend or other and they steal it from you… You are not covered under insurance. And if they had insurance, it is automatically canceled.

Be careful when you rent your stuff!!
 
R. Gonzales said:
I have been thinking about posting this info for some time now. Let me tell you about the great insurance scam that thieves are using to liberate your camera equipment from you.

It works like this:

Joe Evil calls you up and says he is an independent producer and he just finished a shoot but needed to rent some gear for a days worth of pick-ups. You ask where is he getting lenses from He says he is renting from a well known rental house and you check it out and find out its all true.

You agree to rent him your bran new EPIC-M/X but you need his insurance company to email or fax an insurance certificate naming you and your equipment as insured by the company. Sure enough, you get an email with the certificate with the requirements you stipulated. But wait, it seems that this guy uses the same insurance company you do (great!!). You decide to call the insurance company to confirm the certificate. They tell you everything is fine and Joe Evil has the correct insurance.

NOW THE SCAM BEGINS!!!
Joe Evil is at your door ready to pick up your camera, he’s got a bunch of stuff from the other rental company already in his car/van. You’re still a bit nervous and you ask to copy his drivers license and take an imprint of his credit card. No problem he says and freely hand over the card and license. Joe Evil promises to return your camera by 12 noon the next day and then he leaves thanking you as he drives away.

The next day you get a phone call from Joe Evil, he tells you that the shoot went well but ended really late and he had slept in. He says that he is load up and will be about 30 to 45 minutes late. An hour passes and you decided to wait another 30 min. You call Joe Evil but there is no answer, you call again, and again with the same results; no answer. You call the rental house to find out if Joe Evil has returned their lenses and they tell you the police are there and they are filing a theft report against Joe Evil.

To make this long story short you call your insurance company and explain what happened and they say-


“We are sorry for your situation but this theft is not covered under your insurance policy. In fact they have now canceled Joe Evil’s insurance.”

Let me try to explain:
This happened to a friend of mine, a RED1 owner/operator who from time to time rents his gear.

The insurance company says this is in your policy, page 66 section 7. A.
Perils Excluded
(e) loss, damage or expense caused directly or indirectly by or resulting from:
(i) misappropriation, secretion, conversion, infidelity or any dishonest act on the part of the Insured or other party of
interest, the employees or agents of the Insured or any person or persons to whom the property may be entrusted (bailees for
hire excepted);
(ii) voluntary parting of ownership or title by the Insured to any party whether from a legal or illegal transaction;
(iii) loss or shortage disclosed on taking inventory, or any mysterious disappearance.

What this means in plain English is, if you voluntarily rent, or loan your camera / equipment to someone, whether is a friend or other and they steal it from you… You are not covered under insurance. And if they had insurance, it is automatically canceled.

Be careful when you rent your stuff!!
Click to expand...

Your friend needs a new insurance agent. If you rent equipment, be sure you have the appropriate insurance coverage.
 
Greg M said:
Your friend needs a new insurance agent. If you rent equipment, be sure you have the appropriate insurance coverage.
Click to expand...

Greg... Not so.

At least not in Canada, I pulled that excerpt from my own insurance policy after I found out what happened. I call my insurance company and they were happy to take me through the policy paragraph by paragraph. they said that the insurance companies are not in the business of making people profit from illegal acts. You might want to check yours with your broker. My understanding is this applies to all.
 
Everyone needs to check their policies . Trust me I checked mine and there is an exclusion in there.

Max Fischer said:
I lost an Aaton package like this. My insurance policy had a fine-print exclusion for "trickery." No shit...no coverage.
Click to expand...
 
Yikes.
On a similar note, a travel insurance policy I almost bought excluded accidents due to "swimming, boating, recreational "etc etc.
Insane. My credit card gave better insurance.

Guess this means we all have to read the fine print, but this theft story of red equipment is ludicrous.
 
R. Gonzales said:
Really?? Then pass on your brokers name and number.
Click to expand...

Jessica Martinez
Ventura Insurance Brokerage
Account Executive - Entertainment Division

475 Park Avenue South 17th Floor New York New York 10016
T 212-702-3326 ¨ F 212-702-3376 ¨ M 718-755-5905 ¨ Toll Free 800-795-8075
 
If you indend to RENT your equipment to a third party - the coverage is VERY different. You need to discuss this with your broker. And find a broker that knows the business - and has done these policies.
 
Greg M said:
how does this make people profit?
Click to expand...

Joe evil buys insurance and rents equipment then steals it and profits from selling on the black market. Needless to say the dude Im talking about skipped the country while everyone was still trying to phone him.

Hers is a section of my exclusions:

7. A. Perils Excluded
This Form does not insure:
(a) loss or damage caused by electrical currents other than lightning unless fire or explosion as described in Clause 13. (g)
ensues and then only for such destruction or damage as results from such fire or explosion;
(b) wear and tear, latent defect or inherent vice, mechanical or electrical breakdown or derangement;
(c) loss or damage caused by deterioration, rodents, insects or vermin, corrosion, rust, dampness of atmosphere, freezing or
extremes of temperature;
(d) loss or damage (unless fire or explosion as described in Clause 13. (g) ensues and then only for the loss or damage caused
by such ensuing fire or explosion) sustained while the property insured is actually being worked upon and directly resulting
therefrom or caused by any repairing, adjusting or servicing of the property insured;
(e) loss, damage or expense caused directly or indirectly by or resulting from:
(i) misappropriation, secretion, conversion, infidelity or any dishonest act on the part of the Insured or other party of
interest, the employees or agents of the Insured or any person or persons to whom the property may be entrusted (bailees for
hire excepted);
(ii) voluntary parting of ownership or title by the Insured to any party whether from a legal or illegal transaction;
(iii) loss or shortage disclosed on taking inventory, or any mysterious disappearance.
(f) loss or damage caused by explosion originating within steam boilers of the property insured;
(g) loss or damage caused by or resulting from delay, loss of market or loss of use;
(h) breakage of glass or articles of a fragile nature, unless caused by “named perils”, theft and or attempted theft, earthquake,
flood, or collision, derailment or overturn of conveyance, unless shown on the “Coverage Summary”;
(i) loss or damage occasioned by theft or pilferage of the insured property when left in automobiles or other conveyances
unless such loss or damage be a direct result of violent forcible entry (of which there shall be visible evidence), from a fully
enclosed body, the doors and windows of which shall have been securely locked, or from a compartment which shall have
been securely locked. It is understood and agreed, however, that the foregoing shall not apply when the insured property is
in the custody of a common carrier;
(j) loss, destruction or damage caused directly or indirectly:
(i) by war, invasion, act of foreign enemy, hostilities (whether war be declared or not), civil war, rebellion, revolution,
insurrection or military power;
(ii) by any nuclear incident as defined in the Nuclear Liability Act or any other nuclear liability act, law or statute, or any
law amendatory thereof or nuclear explosion, except for ensuing loss or damage which results directly from fire,
lightning or explosion of natural, coal or manufactured gas;
(iii) by contamination by radioactive material.
7. B. Pollution Excluded
This Form does not insure against:
(a) loss or damage caused directly or indirectly by any actual or alleged spill, discharge, emission, dispersal, seepage, leakage,
migration, release or escape of “pollutants”, nor the cost or expense of any resulting “clean up”, but this exclusion does not
apply:
(i) if the spill, discharge, emission, dispersal, seepage, leakage, migration, release or escape of “pollutants” is the direct
result of a peril not otherwise excluded under this Form;
(ii) to loss or damage caused directly by a peril not otherwise excluded under this Form;
(b) cost or expense for any testing, monitoring, evaluating or assessing of an actual, alleged, potential or threatened spill,
discharge, emission, dispersal, seepage, leakage, migration, release or escape of “pollutants”.
7. C. Data Excluded
(i) This Form does not insure “Data”.
(ii) This Form does not insure loss or damage caused directly or indirectly by “Data problem”.
However, if loss or damage caused by “Data problem” results in the occurrence of further loss of or damage to property
insured that is directly caused by fire, explosion, smoke, leakage from fire protective equipment, escape of water from any
tank, apparatus or pipe, all as described in Clause 13. (g) “Named Perils”, this exclusion (ii) shall not apply to such resulting
loss or damage.
 
Greg M said:
Your friend needs a new insurance agent. If you rent equipment, be sure you have the appropriate insurance coverage.
Click to expand...

+2

Had a CAT skid-steer loader and trailer stolen much the same way a few years back. All credentials checked out at the time, turns out everything was legit except the thief had stolen someone else's identity. They had a valid drivers license, credit card, insurance, etc.. all issued in the the identity-theft-victim's name, but with the thief's photo on the license. Never found the equipment or the thief. Our insurance covered it, we have coverage for identity theft and fraud. You do have to be careful and the real scam going on here is insurance companies using thinly veiled exclusions to their policies, which often relieve them of responsibility under some of the most common types of theft or wrong-doing!!! Find a good insurance agent, go through the policy with a fine-tooth comb.

An insurance policy that doesn't cover what it's supposed to cover by way of secondary exclusions is usually not worth the paper it's printed on. I'd find a new agent and/or provider.

Reading the exclusions highlighted above in red, it seems that the policy in question is not a proper policy for renting out the equipment. (ii) pretty much nullifies any insurance claim you may ever have for damage, theft, anything, that may happen while in the hands of a rental customer. Whether or not that is a bad policy isn't apparent just from this. However, it is most certainly the WRONG policy for anyone who hires out that equipment.

That long list of exclusions is kinda fascinating. I'm sure I have rolls of toilet paper that are worth more than that policy. Ouch. Find a new agent. Like Mark said, find someone who knows the business. At least find someone who's familiar with rental policies and renting equipment.
 
Mark L. Pederson said:
If you indend to RENT your equipment to a third party - the coverage is VERY different. You need to discuss this with your broker. And find a broken that knows the business - and has done these policies.
Click to expand...

Mark, That's what I thought as well. Even one of our big rental companies here in T.O. has the same insurance. I checked and unless I am being lied to there are no separate policies for equipment rental. There is one exception, where companies are charging a certain amount and placing those funds into a pool where they can draw from it in cases like this. Now if you can direct me to a better policy, I'd gladly take a PM from you with that info. Come on Mark if you know better give it up. :)
 
Thanks Mark,

I'll look into this quickly
Mark L. Pederson said:
Jessica Martinez
Ventura Insurance Brokerage
Account Executive - Entertainment Division

475 Park Avenue South 17th Floor New York New York 10016
T 212-702-3326 ¨ F 212-702-3376 ¨ M 718-755-5905 ¨ Toll Free 800-795-8075
Click to expand...
 
Jeff,

I haven't even posted half of it! I must admit there is a rider that negates the majority of these exclusions except for the one I posted originally.

Jeff Kilgroe said:
+2

Had a CAT skid-steer loader and trailer stolen much the same way a few years back. All credentials checked out at the time, turns out everything was legit except the thief had stolen someone else's identity. They had a valid drivers license, credit card, insurance, etc.. all issued in the the identity-theft-victim's name, but with the thief's photo on the license. Never found the equipment or the thief. Our insurance covered it, we have coverage for identity theft and fraud. You do have to be careful and the real scam going on here is insurance companies using thinly veiled exclusions to their policies, which often relieve them of responsibility under some of the most common types of theft or wrong-doing!!! Find a good insurance agent, go through the policy with a fine-tooth comb.

An insurance policy that doesn't cover what it's supposed to cover by way of secondary exclusions is usually not worth the paper it's printed on. I'd find a new agent and/or provider.

Reading the exclusions highlighted above in red, it seems that the policy in question is not a proper policy for renting out the equipment. (ii) pretty much nullifies any insurance claim you may ever have for damage, theft, anything, that may happen while in the hands of a rental customer. Whether or not that is a bad policy isn't apparent just from this. However, it is most certainly the WRONG policy for anyone who hires out that equipment.

That long list of exclusions is kinda fascinating. I'm sure I have rolls of toilet paper that are worth more than that policy. Ouch. Find a new agent. Like Mark said, find someone who knows the business. At least find someone who's familiar with rental policies and renting equipment.
Click to expand...
 
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