We have borrowed friends Rhino's in the past and it is well known amongst my group of friends that you are responsible for the machine if you borrow it. Having said that, make 100% sure you have insurance on your machine! If something goes bad and say he person borrowing it gets hurt, they WILL come after YOU first since it was YOUR vehicle they got hurt in.
It is not the persons choice but it will be their insurance company going after you and your insurance company. Insurance companies and Lawyers don't take friendships into account when they are protecting their company or their clients.
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