Do I Need Construction Equipment Insurance?

I have a GC and Liability policies already, isn’t that enough?” Let’s step back for a moment and take a look at why policies are specialized.  If you look closely at your policies, most of the language will focus on the risk of injury, death, or property damage to others.  If your own equipment is damaged or stolen, it likely won’t be covered by your current policy.  You might be paying a similar premium to a contractor down the street who owns no heavy machinery, based on the claim limit.

What a construction equipment policy brings to the table is coverage for your specific heavy equipment, such as cranes, skid-steers, forklifts, excavators, and more.  Your policy premium will be set on numerous variables, which includes items like asset value and your insurability (creditworthiness, claim history, et cetera).

What Will It Cover?

While your liability and GC policies are designed to protect others while you do business, this is designed to protect your equipment assets from incidental physical damage, theft, and vandalism.  The policy may even be structured to cover your equipment while stored in one or many locations, such as a storage facility or if you have equipment at multiple job sites simultaneously.  The policy is designed to protect you from loss that exceeds the deductible set in your policy, as it relates to equipment damage or theft.

What Equipment is Eligible?

Nearly any equipment or tools required to complete your job.  From large heavy machinery such as excavators, backhoes, and bulldozers to midsized equipment such as forklifts and small tractors, to the scaffolding and tools in your Job box.

What About Rentals and Leases?

A policy may cover the costs of rented equipment needed while awaiting repairs on your own equipment, provided it’s a covered claim, and policies can be taken out on leased equipment specifically as well.

Am I Required to Carry Construction Equipment Insurance?

No, it’s not required like general liability insurance often is.  While not mandatory, it does help mitigate risk to your business.  Equipment is often left outside unattended with nothing more than a chain link fence guarding it.  Paying a few hundred to a few thousand per year depending on the amount and value of the equipment covered to reduce your risk, in many cases it simply makes good business sense.