Every construction firm should evaluate the benefits of having a contractor’s equipment insurance policy. In many cases, commercial property insurance will protect the personal property associated with the business while it is at the location listed directly on the policy. Where many business owners find themselves in trouble, however, is when that property moves to different locations. This is rarely covered in a general policy, but it can be protected with adequate coverage under a contractor’s equipment policy.
It can also be tempting to think that business automobile insurance policies will cover all of the equipment associated with your company. While these policies typically do insure property that moves, they often do not cover mobile equipment like motors, digging equipment, power tools, or bulldozers that are used by the business off premises. Larger pieces of construction equipment can be extremely expensive, which is why business owners should always protect them with a contractor’s insurance policy.
A contractor’s insurance policy helps to protect equipment from several different kinds of losses, such as vandalism, theft, fire, explosion, overturning, and collision with other objects or equipment. These policies go beyond the standard property insurance coverage available.
There are usually a few different types of policies that are offered by an insurance company with regard to contractor’s insurance. The first is known as rental reimbursement coverage, which helps to cover the cost of renting a substitute piece of equipment when the initial one is damaged or lost. Blanket coverage, however, protects all of the covered equipment together rather than insuring each item separately for individual amounts. Finally, reimbursement of income can provide for expenses when the owner cannot complete a project because a covered loss cause has damaged an insured piece of equipment.
These vital pieces of equipment are necessary to help your business continue to run smoothly, but they also represent an investment that you made in your company and your own future. A sudden loss or significant damage to one of these pieces of equipment can immediately halt your ability to complete existing projects, but it can also expose your company to financial risk. Purchasing a contractor’s insurance policy, however, can safeguard your business from the costly expenses of replacing these critical pieces of equipment.