Everything You Need To Know About Contractor Equipment Insurance

As a contractor, your equipment is one of the biggest investments you can make in your company, and having contractor equipment insurance is vital for every business in the construction industry. 

Here, we'll go into detail about equipment insurance and how it can benefit your company. We'll also talk about the different types of coverage available so you'll know all the options you have.

Contractor Equipment Insurance - What You Need To Know

Contractor equipment insurance protects your equipment from your day-to-day work, which comes with unique risks. The insurance policy will cover the cost of damaged or missing tools you need for your contracting work.

When you rely on your tools, insurance is essential. It gives you the resources you need to keep working, and when you work on heavy, complex projects all day, your equipment is exposed to potential damage. Therefore, equipment coverage will reduce your losses and keep operations running as usual. 

Some items may be covered on a replacement cost basis. That means they'll be valued at the original price, not counting the depreciation that may happen over time. Some policies also protect against theft and vandalism. The details vary between policies and different companies. Overall, this type of insurance includes many different scenarios. 

Insurance policies are available for every type of machinery, from bulldozers to forklifts. Investing in an equipment policy can save you time and money. Every contractor can benefit from a good equipment insurance policy. 

Scheduled coverage means that your insurance policy is limited to items you have listed with the insurance company. While Blanket coverage, on the other hand, applies to all items that fit the terms set by the policy. This means broader coverage, and items don't need to be individually listed. 

Each option has its benefits. It may be better in some situations than others. Many companies use a combination of both policy types to make sure they get all the coverage they need to operate comfortably. 

Why Do You Need Equipment Insurance?

Contracting companies use a variety of tools and equipment to do their work effectively. For some companies, equipment makes up the bulk of their expenses. It makes sense to protect your equipment and make up for the financial risks of losing it.

Construction companies rely on specialized tools, whether they're hedge trimmers for landscaping or bulldozers for excavation work. No matter your specialty, insurance companies will help you repair and replace essential items. 

The cost of replacing or repairing equipment can be prohibitive. When your tools are insured, it is much easier to continue working seamlessly. After loss or damage to crucial tools, you can submit a claim and get reimbursed.

This type of insurance is broad enough to include everything your employees need to do their job. That means special work clothing, small tools, and even rented or borrowed equipment. Policies may even cover stolen or vandalized items. 

The versatility of this insurance makes it valuable to all kinds of business owners. 

What Is Inland Marine Insurance?

The name might be misleading, but inland marine insurance policies are a form of property insurance. This plan covers materials, products, and equipment that is portable or being transported. It covers items that are excluded from standard property insurance companies. 

This type of policy includes property that falls into specific categories. Some examples include:

Medical equipment

Fine art

Special event equipment

Electronics

In the case of a contracting company, this type of insurance may be used to cover rental equipment. Every insurance company has a different approach to rentals! If your company relies on rentals often, you should ask about coverages that work well with rental items.