Rental Equipment Loss Control: 21 Ways to Prevent Rental Company Theft
Rental equipment companies continue to face millions of dollars a year in loss due to equipment theft. In fact, insurers report that, “the volume of claims they see for equipment being rented by policyholders far exceeds the volume of rental equipment that they are insuring.” Thieves are simply more likely to target rental equipment because it’s less risky. With the coming recession crime wave of 2009 it’s more important than ever to stop equipment rental loss.
This article investigates all the ways loss prevention professionals can make it MORE risky for thieves to target both equipment rental facilities and rental equipment on construction sites. According to Jeff McGeary, senior vice president of sales, Allied Insurance Brokers, “the money you spend on loss prevention you will get back at least five-fold.”
In this article you will learn:
>> The 3 Basics of Rental Company Security
>> Physical Security in the Equipment Rental Yard
>> Jobsite Rental Equipment Loss Prevention
>> Rental Equipment Transportation Security: Protecting the Handoff
>> Late or Stolen? How to Stop Equipment Theft by Fraudulent Conversion
>> The 3 Basics of Rental Company Security
As in all disciplines, there are a few core areas of expertise and activity that will have drastic impact. Our first section outlines the 3 essentials of rental company security.
1) Make One Person Solely Responsible for Loss Prevention
Either hire or reassign someone who you can make solely responsible for loss prevention. Work with them closely to develop your loss prevention program. This is the person who develops and enforces your facility’s nightly lockdown routine. This person conducts nighttime and holiday security review drive-bys. This is the person who reaches out to neighbors and the police so that your company has a personal, friendly face. This is the person who stakes out customers who are late to return equipment. Set aggressive loss reduction goals and build in performance bonuses.
2) Loss Prevention Technologies that Stop Theft Before it Starts
Many security technologies focus on either recovery or post-theft prosecution. Loss prevention technologies head off thieves before they strike, meaning you have your equipment immediately available for rental instead of hidden in a temporary storage facility. Put your security dollars into loss prevention technologies such as remote video surveillance that includes remotely operated sirens and strobe lights.
Ideally your loss prevention technologies can stop crime before it starts:
Click here to stop rental equipment theft before it happens with live remote monitoring >>
3) Prevent Insider Theft
If you’re a thief seeking to mitigate risk and maximize return then you’re highly likely to seek insiders who can tip you off to specific vulnerabilities and opportunities. That’s why thorough employee background checks are vital, at all levels of your company. Make sure you’re calling and confirming all references and always trust your gut. Regular drug abuse checks are vital as well. Finally, implementing employee crime-stopper programs can go a long way towards helping honest people fight temptation and STAY honest.
Also see: Reducing Employee-Driven Job Site Theft.
>> Physical Security in the Equipment Rental Yard
Securing the physical environment of your equipment rental yard can go a long way towards preventing theft. Even if you’re not 100% unassailable you will still send thieves looking for a softer target. Here are some ways to stop loss from your equipment rental yard.
4) Maintain a Clean, Orderly Appearance
By maintaining a clean an orderly appearance at your equipment rental yard you send a strong message to thieves that you care. Thieves feel less safe in clean, orderly environments because they know that a disheveled, dirty and disorganized equipment yard means that the owners aren’t likely to be taking care of security. Keeping things clean and orderly will also benefit the impression your customers have.
5) Install Adequate Security Fences and Walls
The security barrier around your rental equipment yard must be at least 8 feet tall and topped with razor wire. Walls are far more secure than fences – there are stories at least once a month of fences getting cut. Walls however can hide internal activity so there is something of a security tradeoff. Minimize access and be sure that there’s no rubbish piled on either side of your barrier. Consistently remove any brush, trees or weeds that could give prowlers cover along your perimeter.
Also see: How Secure is Your Construction Security Fence? 11 Questions to Ask.
6) Install Bright White Security Lighting
Next to employee insiders, shadows are a thief’s best friend. Eliminate shadows completely using bright white light that doesn’t create a glare to outside observers. Lighting enables neighbors and passersby to identify threats, and creates enough light to positively identify intruders on surveillance camera.
7) Install Security Signage in Multiple Languages
Advertise your security technologies every 20 feet. Large signs are best, but smaller signs near the checkout (Smile! You’re on Surveillance Camera) will make a difference too. Say it loud and proud – this shows thieves that you are a risky target.
8) Crack Down on Loitering
Whether it’s employee friends or locals who congregate on the corner where your facilities are located, loitering leads to theft. Many cities have anti-loitering laws for convenience stores for similar reasons. Loitering creates cover for potential thieves. If possible remove any pay phones near your facility as these attract loiterers as well as people in illicit trades.
9) Install Strong Locks
This includes the locks on all your access points, as well as locking mechanisms for your most vulnerable equipment. Make sure your locks are resistant to freezing and other common methods for compromising security.
10) Establish and Assign Responsibility for an End of Day Lockdown Routine
A consistently enforced lock up routine at the close of business goes a long way towards stopping theft. Checking locks, checking lighting, checking alarms and video surveillance, checking the perimeter for access points – all this and more must occur every single day. Thieves often prepare the equipment yard before striking by changing locks or moving equipment slightly so that they can get better access. Think like a thief and you’ll be able to quickly create your routine.
11) Asset Management Technology
Do your rental vehicles ever get lost? If you’re still using a whiteboard to track and manage your rental equipment it might be time to investigate some asset management technology. Sloppy asset management makes it easy for employee thieves to flourish and makes it harder for you to recognize when thieves of any kind strike.
>> Jobsite Rental Equipment Loss Prevention
Your rental equipment is highly vulnerable on the jobsite for many reasons. Jobsite access is difficult to regulate. Jobsite fences and barriers are temporary and therefore less effective. Jobsites are often near major roadways, making getaway simple. There are a number of things you can do to help increase the security of your equipment when it leaves your hands.
12) Educate Your Jobsite Equipment Renters
Educating your equipment renters on how to prevent jobsite theft can help you to reduce the theft of your equipment. Here are a number of links you can print off or send out via email:
A Model Home Security Plan: 10 Tips that Prevent Burglaries
9 Ways to Stop Construction Theft During Holidays and Vacations
How Secure is Your Construction Security Fence? 11 Questions to Ask
Secure Jobsite Boxes: 4 Key Features to Look For
5 Security Lighting Tips For Your Construction Site
Security Questioning Tactics for Your Construction Site
A Pre-Job Checklist That Improves Your Job Site Security
How to Analyze Your Job Site’s Security Needs BEFORE the Job Begins
Job Site Security: Establish Your End-of-Day Routine
13) Provide Discounts for Jobsites with Theft Prevention Technologies
If your equipment renters decide to add pro-active video surveillance to their jobsite, your equipment will be safer. Why not reward this decision with a discount? Provide a financial incentive for your customers to keep your equipment safer and you will reduce loss over the long term.
14) Install Equipment Recovery Technologies
There are a number of GPS systems that enable you to track down your vehicles after they are stolen from your customers’ jobsites. An added advantage is that you can use some offerings in your own internal vehicle tracking program and they could potentially provide advance warning if someone has taken your equipment to an unscheduled location.
>> Rental Equipment Transportation Security: Protecting the Handoff
Equipment drops offs are especially prone to incidents of theft. There are a number of tactics you can employ to reduce your loss in these vulnerable moments.
15) Always Unload Equipment From the Trailer
Leaving equipment on the trailer makes theft fast and easy. Instruct your equipment delivery crew to never, ever leave equipment on a trailer when they deliver it. Instruct them on the basics of jobsite security and give them the authority to speak frankly with your clients about security vulnerabilities.
16) Ensure that Scheduled Drop Offs are Secured
All too often careless general contractors leave jobsite fences or barriers open for evening or weekend delivery and neglect to make allowance for securing closure. Instruct your delivery crew to never leave jobsites unsecured if no one’s there – otherwise you’re throwing your equipment to the wind. Be sure to reward employees who aggressively protect your security – any rewards you make will pay you back tenfold in loss reduction.
>> Late or Stolen? Preventing Equipment Theft by Fraudulent Conversion
Burglary is not the only methods used in rental equipment theft. Thieves increasingly use the cover of false identities to unlawfully rent equipment and steal it flat out.
17) Install Video Surveillance at the Rental Counter
Video tape the faces of each and everyone of the people who approach your rental counter. Digital video recording works best because you can store months and months of footage for future review. Make sure that your cameras shoot up from a counter level rather than down – this helps to view facial features even when thieves wear hats.
18) Install Video Surveillance in the Parking Lot
Install video surveillance in the parking lot so you can record each and every license plate that drives in. Make sure that all your customers and parking lot visitors know you have their license plates on camera – this helps keep everyone honest. This information will go a long way towards helping your recovery efforts.
19) Conduct Background Checks on All New Customers
Who’s the GC on the project they’re renting for? Who’s the owner of the project? Asking the right questions at the right times can go a long ways towards preventing theft. Always, always, always follow up with references. There are two times when you need to TRIPLE CHECK references – when your gut tells you there’s something wrong, and when you tell yourself there’s no way a potential customer could be a thief.
20) Conduct Checks on New Faces from Old Customers
A common tactic for thieves is to assume the identity of someone from a trusted customer. If you know your company regulars and someone new shows up always make a call to their office to make sure you’re working with an authorized company representative.
21) Get Aggressive With Service Thieves
Service thieves are the guys who rent equipment for three days and bring it back two weeks later – having used it hard the whole time. Get more aggressive with them by setting your “dogs” on them if they’re late. This includes aggressive phone calls, jobsite visits and, if the law permits, calls to the police. Cracking down on service thieves will help you with your turnaround time with fraudulent conversion thieves.
References
Equipment Yard Security: 10 Tactics that Stop Equipment Yard Theft
LOCK STEADY
Equipment Claims Adjustment
Theft is a major threat to your rental company
Won’t Pay for the Time? Now it’s a Crime Theft of Services Update
Equipment theft hits epidemic levels
Combating Rental Equipment Theft
Rental Industry Locks Down On Heavy-Equipment Theft
Heavy Equipment Theft and Solutions—Part 1
Prevent Theft In Rental Yard and in the Field
Lessons from an Equipment Thief
