Contractor’s Equipment

Contractor’s equipment coverage is not necessary for most investors or builder’s but for those who build or start many projects each year, such as commercial builders, this is an extremely important form of insurance.  Whereas builders risk insurance covers buildings and structures in the course of construction, equipment such as compressors, generators, trailers, cranes, bulldozers, graders, forklifts, mobile tools, etc. are not covered and commercial property policies limit the coverage they provide for contractor’s equipment.  Anyone who has ever suffered a capital equipment loss due to theft or vandalism knows how expensive it can be to repair or replace these items.

Even self-employed carpenters, who take on smaller jobs such as building decks, patios, screened-in porches, and the like, use tools and equipment that need to be insured. These smaller contractors might purchase a small tools form or an Artisans policy, the latter providing contractors equipment coverage as an option.

Similar to builder’s risk insurance, contractor’s equipment coverage is an important part of almost any construction project. The cost of this equipment varies, but larger machinery and equipment can be extremely expensive, with some worth hundreds of thousands of dollars or more. Contractor’s equipment insurance provides coverage for damage to mobile equipment, including tools and machinery, used in construction as well as in a variety of other activities.   This coverage is usually not restricted to any single location, so it applies at job sites, other locations, and while in transit.  The additional perils of flood and earthquake damage are also often covered in contractors equipment policies.

For an additional premium, endorsements can also be added to provide coverage for income losses resulting from damage to covered equipment. A related coverage, rental reimbursement, can also pay for the cost of renting substitute equipment when the regular equipment has been damaged by a covered peril.

A lso, it is important to know that there is no standardized contractor’s equipment policy and each company is free to write and issue its own policy form as it wishes to meet risk levels and its business ‘appetite’ - so each form must be reviewed carefully.

If you would like to discuss your insurance needs in more detail, call us at (512) 501-4010 or (800) 299-8994 to see how we can help.  You may also email us at Info@InsuranceForInvestors.com and we will contact you back to discuss your situation.