Is My Construction Equipment Covered With My Commercial Property Policy?
Transporting heavy equipment to and from worksites presents some inherent risks, and construction companies need to make sure their equipment is protected against damage when it’s moved. If you’re in the construction industry, here’s how to make sure your equipment is covered both at your facility and when on the road.
Commercial Property Coverage Extends to a Company’s Facilities
Commercial property insurance can be set up to cover equipment, tools and supplies along with buildings, but it’s coverage is normally limited to a company’s facilities. In other words, the coverage usually won’t cover equipment, tools or supplies when they’re taken beyond the property boundaries of an insured facility.
Thus, commercial property often won’t cover heavy equipment as it’s transported from one place to another via public road.
Commercial Auto Coverage Applies to Vehicles
Some construction companies mistakenly think their commercial auto coverage will protect equipment that’s in tow, but this typically doesn’t hold true when moving large and expensive equipment (or even a lot of materials).
Commercial auto coverage is primarily intended to insure commercial vehicles that a company owns, and it provides only limited protection for other items that might be inside a vehicle. The value of construction equipment will almost certainly exceed the limits that commercial auto sets for non-vehicle items, and equipment might be excluded altogether because it’s on a trailer.
Thus, commercial auto coverage also doesn’t provide sufficient protection for equipment when it’s being moved. The coverage might not even cover the cumulative cost of many building materials that are brought to a worksite in one load.
Inland Marine Insurance Fills in This Coverage Gap
Inland marine insurance is specifically designed to fill a coverage gap like this. The insurance generally covers equipment, tools, supplies, inventory or other goods as they’re transported between locations (not overseas, which ocean marine insurance covers). The coverage is used by freight companies and many others, and it’s highly helpful within a construction equipment insurance policy.
Specifically, inland marine insurance can provide coverage for expensive equipment as it’s transported to, from or between worksites. The coverage can also extend to building materials or other supplies that might be moved from a supplier or your facility to a worksite.
Add Inland Marine Insurance to Your Construction Equipment Insurance
Inland marine insurance is widely available within construction equipment insurance package policies. To learn more about inland marine and add it to your construction equipment policy, contact the experienced insurance agents at ENGS Insurance Agency. As an established agency that caters to the construction industry, our agents are well-equipped to serve you.