Contractor Equipment Insurance

Finding the Best Contractor Equipment Insurance

(Because construction projects come equipped with dangerous toys)

Christine Lacagnina | June 8, 2018

A day on the job for a contractor isn't child's play. It involves the use of heavy equipment and potentially dangerous machinery. Daily jobs include a high margin for error, and mistakes could be disastrous and extremely costly. Equipment that needs to be replaced or repaired could lead to time lost on the job, as well as other expenses for your business.

That's why it's important to know about the different types of contractor equipment insurance available. Our independent agents are here to eliminate the hassle of searching on your own by walking you through a handpicked selection of top policies for you. 

What Is Contractor Equipment Insurance?

Summed up, contractor equipment insurance is designed to protect all the equipment required by your job from theft, vandalism and physical damage (excluding general wear and tear). Coverage is also designed to protect equipment that may be stored in multiple locations, as is the norm for the contracting industry.

When Would I Use Contractor Equipment Insurance Coverage?

Coverage mainly comes into play when you have a loss or claim that exceeds your policy's deductible. If your equipment is stolen, your business will pay out of pocket up to the amount of the deductible, and then insurance will pay up to the value of the equipment. The same applies if there is a covered accident that results in damage to your equipment. 

What Qualifies as Contractor Equipment?

  • Small vehicles - forklifts, tractors, etc.
  • Heavy equipment - backhoes, excavators, skid loaders, bulldozers, cement mixers, etc.
  • Miscellaneous Tools - hand tools, drills, wrenches, etc.
  • Other equipment - workbenches, sawhorses, scaffolding, portable generators, etc.

Is Contractor Equipment Insurance Mandatory?

Not necessarily. While contractors are usually required to carry general liability coverage (to protect third parties from property damage or injury), extra coverage tends to be optional. However, coverage for rented/leased equipment is usually mandatory. Additionally, it's a good idea to have coverage because of the high cost of your equipment and the potential financial ruin that could result for your business should you need to replace it.

Why Do I Need Contractor Equipment Insurance?

Well, the contracting business involves high-risk activities that utilize expensive equipment. Job projects could easily lead to damage or destruction of this equipment, or it could fall victim to theft or vandalism. Having coverage could allow your business to continue smooth operation in the event of an incident, rather than having to close down during maintenance, or even permanently - leading to financial ruin.

What Does Contractor Equipment Insurance Cover?

A contractor equipment policy protects the equipment used by your contractors on the job from being stolen, as well as from a wide range of hazards with differing levels of severity.

Some key components of coverage include:

  • Damaged/destroyed: Covers replacement of equipment that is damaged or destroyed by work incidents.
  • Theft: Covers replacement of equipment that is stolen.
  • Rented/Leased equipment: Covers costs of rented/leased equipment needed while awaiting repairs on your own. Also protects the rented/leased equipment while in use by your business.
  • Newly acquired: Covers any incidents involving new equipment within a specified time frame, including repairs and replacement - but often for a limited amount of time.

How Much Does Contractor Equipment Insurance Cost?

Your policy's cost will depend on a couple of factors, including the amount of equipment used by your business, and the value of each item covered. For a smaller business with only a couple of pieces of lesser-value equipment, the cost will be significantly less than it will for a larger business with lots of high-end, pricier equipment. Premiums can range from several hundred dollars annually to numbers in the low thousands.

What's So Great About an Independent Agent?

Insurance policies can be incredibly complex, and searching through available options can be totally lame - it's a boring, tedious and downright eyeroll-inducing task. An independent agent's role is to simplify the process.

Independent agents are there to make sure you get the absolute best deal, and the one that meets your unique needs. They shop and compare insurance quotes for you, and they'll break down all the jargon so that you understand exactly what you're getting.

Finding/Comparing Contractor Equipment Insurance Quotes

Our knowledgeable agents will review your needs and help you evaluate which type of contractor equipment insurance makes the most sense for your business. They'll also compare policies and quotes from multiple insurance companies to make sure you have the best protection out there. They'll hook you up - in a comprehensive and affordable way.

TrustedChoice.com Article | Reviewed by Paul Martin

Now, who's ready to get their insurance problems solved?