Libraries make you pay for damaging or losing books usually. I am generally of the privatized camp, where when you pay for something and it's yours you take good care of it, and if you do something to it you bear the full consequences. If you borrow, then it should be with the explicit agreement to return in original form. In fact put it in writing and have a contract made, take a picture of it. As now you are in the lending business... even if the price you are charing is $0. And if it comes back damaged and they are not willing to pay for it, or if they lose it, then don't lend to them anymore and remind them if they ever ask you as to why. Maybe you will lose friends, but then you should probably not be mixing business with pleasure.
People in the lending business usually place a hold on your credit card for the full value of the item being rented until it is returned undamaged. The charge never actually hits the card unless something goes wrong.
I can't put a hold on someone's credit card for the full replacement value of a chainsaw, let alone an excavator or a truck.
When I worked at a hire company, we put a hold on the card for a fixed value for some smaller items - hand tools, things like lawnmowers that we were doing a deal on, or an extra days rent for larger items.
I worked at a company that rented out boats and jet skis. That's how they did it. If your card didn't have enough credit, tough luck.
Although actually, the confidence I'm displaying above may be unwarranted. Maybe the hold value was actually a fraction of the full value and then a portion of the rental price went towards insurance. Not sure.
