Contractors Equipment Insurance

The tools and equipment used by your contractors on a construction site are valuable, and they should be insured over the lifetime of the project.

Contractors Equipment Insurance is a vital element in a construction firm’s coverage. This coverage protects business gear and equipment while it is at a work site that has been specified on the policy list. It doesn’t, however, protect gear and equipment which is moved to other locations.

How Contractors Equipment Insurance And Other Business Vehicle Policies Differ

A business or commercial auto policy does cover certain vehicles that are moved to other sites, but these don’t protect equipment like bulldozers, loaders, diggers, or power tools. Power tools are usually an outlay of no more than a few hundred dollars. However, larger gear and equipment such as a backhoe or excavator is often valued in the tens of thousands. A business investment in these types of equipment should be appropriately covered to ensure both protection of the bottom line and the company’s peace of mind.

Typical Types Of Businesses That Use Contractors Equipment Insurance

Contractors Equipment Floaters can be written for contractors, municipalities, manufacturers, wholesalers, retailers, or any other type of commercial enterprise that owns mobile machinery and equipment. Your coverage amounts may vary, but it is better to list or “schedule” your highest actual cash value items on the policy, and review the list regularly in order to keep it accurate and up to date.

Typically, contractors equipment coverage protects the equipment that is listed on the insured’s declarations page. Equipment and gear may also appear on a separate schedule. In either case, a contractors equipment policy additionally covers gear that is under ownership of a different business or person while it is in the insured’s care, keeping, or control.

For instance, this type of insurance covers on-site loaders that the insured may have borrowed or rented from a third-party provider. It may also provide a certain amount of coverage to protect a set of less costly gear, like power hand tools. Ex: a policy may be written to provide $10,000 worth of protection for a group of tools, but $500 per any single tool is the maximum coverage per tool.

What Contractors Equipment Floaters Do And Do Not Cover

Contractors Equipment Insurance does not include protection for an automobile, truck, aircraft, watercraft, or -perhaps it goes without saying- contraband. This insurance may also not protect gear that the insured will use in underground mining procedures, or that is rented or loaned to a third party.

Items typically insured under a Contractors Equipment Policy include mobile or portable equipment, such as:

  • Bulldozers
  • Power Shovels
  • Loaders
  • Graders
  • Backhoes
  • Forklifts
  • Pavers
  • Cranes
  • Compressors
  • Pumps

Policies can also cover smaller tools and equipment as well, and covered equipment may be owned, rented, leased, or borrowed from others.

This type of commercial insurance policy protects equipment against an array of losses, which includes fires, explosions, vandalism, theft, collisions with other gear or another object, and overturns. Contractor’s equipment insurance will also cover loss incurred through flooding or an earthquake.

 

Resources

Construction Contractors Insurance Overview