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What California law puts on each side of a rental

In California, renting out equipment falls under the Civil Code chapter on hiring of personal property, and the code already splits some duties between you and your customer before your rental agreement says a word.

On the renter's side:

• Civil Code 1928: the hirer must use ordinary care to keep the thing safe and in good condition.
• Civil Code 1929: the hirer must repair all deterioration or injury caused by a lack of ordinary care.

On your side, Civil Code 1955 says one who leases personal property must deliver it, protect the renter's quiet enjoyment against all lawful claimants, put it in a condition fit for the purpose it's leased for, and repair deterioration that isn't caused by the renter's fault and isn't the natural result of its use. The statute's "except as otherwise agreed" language applies only to lease agreements for a term of more than 20 days.

What that means in practice: because the code puts the fitness and repair duties on you, your pre-rental inspection and maintenance records matter when a renter says the machine failed on them. Keep a signed checkout sheet that records condition, hours and attachments, and a return sheet that does the same. When I send your file to underwriters, your rental agreement and those records are among the first things they ask about.

One caution: Civil Code 1939.01 opens California's rental passenger vehicle chapter, and it defines a rental company as a business renting passenger vehicles to the public. Its damage waiver definitions and the sections that follow are written for car rental, not for skid steers or scissor lifts. The car-rental version is explained at California rental car damage waiver rules. Outside California, the rules for hiring personal property vary by state.

Who has to train the operator

Renting a machine to a contractor doesn't hand over the job of training the person who runs it. The federal OSHA rules put that duty on the employer of the operator, which is usually your customer, not you.

• Forklifts and other powered industrial trucks, 29 CFR 1910.178(l): before letting an employee operate a truck (except for training), the employer must ensure the operator has completed training that combines formal instruction, practical training and an evaluation of performance in the workplace. Each operator is evaluated at least once every three years. Refresher training is required after unsafe operation, an accident or near-miss, an evaluation showing unsafe operation, assignment to a different type of truck, or a workplace change that could affect safe operation. The employer certifies the training with the operator's name, the training and evaluation dates, and who trained and evaluated.
• Aerial lifts, 29 CFR 1910.67(c)(2) and, in construction, 1926.453(b)(2): lift controls are tested each day before use, and only trained (1910.67) or authorized (1926.453) persons operate. 1910.67 requires a personal fall arrest or travel restraint system attached to the boom or basket. 1926.453 calls for a body belt and lanyard, with a note that body belts are not acceptable as part of a personal fall arrest system but may be used in a restraint system.

Where this touches your insurance: if you rent with an operator who is your employee, the training duty is yours, which is why underwriters ask the operator question first and why it belongs on your workers' compensation and general liability applications. If you rent bare, a rental agreement in which the customer confirms its operators are trained, plus a requirement that the customer name you as additional insured (see how additional insured works for contractors), shows underwriters you've thought about who answers for a jobsite injury. Hand out the manufacturer's operating manual with every machine, and note on the checkout sheet that you did.

Official sources

• California Civil Code 1928 (hirer's ordinary care)
• California Civil Code 1929 (hirer's repairs)
• California Civil Code 1955 (lessor of personal property)
• California Civil Code 1939.01 (rental passenger vehicle definitions)
• California Penal Code 484 (theft; rented property)
• 29 CFR 1910.178, powered industrial trucks (Cornell LII)
• 29 CFR 1910.67, vehicle-mounted elevating and rotating work platforms (Cornell LII)
• 29 CFR 1926.453, aerial lifts (Cornell LII)
• 16 CFR 1407.1, portable generators: purpose, scope and effective date (Cornell LII)
• 16 CFR 1407.3, portable generator CO labeling (Cornell LII)