Coronavirus Lawsuits Are Coming

Les Chayo, CRA's general counsel, warns that rental centers should prepare for the expected coronavirus litigation deluge in the following article:

Plaintiffs' lawyers are already aggressively filing lawsuits (some of which may be class action lawsuits), and your insurance may be of little or no benefit! It is important that you “post” warnings throughout your Rental Center (for both your employees and customers) regarding strict compliance with all protections. You should consult with your attorney regarding revising your rental agreement to provide for the customer’s agreement to waive claims and indemnify the rental center from coronavirus issues. You may wish to obtain and post a copy of the new OSHA COVID-19 poster.

If you have not already done so:
– You should require your employees and customers to always wear protective masks.
– You should enforce social distancing and hygiene policies at your rental center and during deliveries and returns.
– You should document your customer’s receipt of cleaned equipment.
– You should dictate that your employees and customers thoroughly clean your equipment and work areas both before and after each rental. 
– You should put labels on your equipment requiring a complete cleaning before and after each rental.
– You should consider setting up touchless electronic contracts, credit card terminals, and pickup and return facilities.
– You should make EPA approved disinfectants and cleaners available.
– You should consult with your attorney regarding defenses to litigation such as the use of multiple entities, transfer of your assets outside of your entity and leasing the equipment to your Rental Center.

For an excellent article on “Preparing Your Business for Possible Coronavirus Lawsuits,” please see ARA attorney James Waite’s article in the June 2020 issue of Rental Management Magazine.