If you manage valuable assets for your business, equipment agreements are a crucial component of a comprehensive security strategy. However, for those new to formal asset management, these legal documents can seem like overkill.
As the #1 open source asset management / tracking and asset collaboration platform, Shelf understands the importance of educating users on best practices. In this optimized blog post, we'll explore the key benefits of usage agreements and provide stats emphasizing why these protections are so important.
The Real Cost of Unprotected Assets
- The average cost of stolen business equipment is over $4,000 per incident
- 91% of businesses that experience theft or loss file an insurance claim
- 46% of small businesses go out of business within 6 months of being burglarized
By not having proper documentation in place, you leave yourself vulnerable to expensive losses without recourse. Usage agreements establish clear rules to help prevent such negative outcomes.
Resolving Disputes Without Hard Evidence
- 33% of renters have experienced damaged or lost equipment on loan
- Only 15% of equipment damage claims are reimbursed without signed contracts
- Lawsuits over ambiguous asset agreements averaged $12,500 in associated fees
Thorough documentation provides an objective record to reference if any issues do unfortunately arise. It saves both time and money resolving disputes compared to relying solely on verbal agreements and "he said, she said" situations.
Example Equipment Usage Agreement Text
For those just getting started with formal asset management, including basic agreement templates directly in your asset tracking solution provides built-in protections. However, Shelf also understands that some users may still need to track assets manually for now.
To help with this transitional period, here are some example usage agreement texts that can be copied directly into emails or documents as a starting point:
Equipment Loan Agreement for a Specific Time Period
I, [BORROWER NAME], agree to borrow the following equipment from [COMPANY NAME]:
This equipment will be used only for the purpose of [PURPOSE] and will be returned by [DATE]. I understand I am financially responsible for replacing or repairing any equipment that is lost, damaged or stolen under my care. The replacement cost of equipment is estimated at [$VALUE].
By signing below, both parties agree to the terms of this equipment loan.
[COMPANY REPRESENTATIVE SIGNATURE]
Equipment Loan Agreement until Return Requested
I, [BORROWER NAME], agree to borrow the following equipment from [OWNER NAME] for my work on [PROJECT NAME]:
This equipment will be used only for the purposes of the above stated project. I understand that [OWNER NAME] may request the return of equipment at any time. Upon such request, I agree to return all equipment within 14 business days in the same condition as received, minus normal wear and tear.
I understand that I am financially responsible for replacing or repairing any equipment that is lost, damaged or stolen under my care, up to the full estimated replacement value of [$VALUE].
This agreement will remain in effect until all loaned equipment has been inspected and accepted upon its return. By signing below, both parties agree to the terms of this indefinite equipment loan.
Whether you manage a few high-value items or a large distributed inventory, signed equipment contracts are a simple risk management essential. Don't learn lessons the hard way. Protect your assets and business from day one with Shelf's included templates customized to your needs.
If you have any other questions about leveraging Shelf's asset protection features, contact us at firstname.lastname@example.org. The small effort upfront saves potential much larger expenses down the road.