Contractor equipment insurance, also known as equipment floater insurance, is a type of inland marine insurance policy. It protects your mobile equipment, including heavy machinery, small tools, rented and borrowed equipment, and your employees' equipment and clothing against theft, loss, and damage during their transportation or when they are kept at worksites away from your commercial property.
Standard contractor equipment coverage includes loss and damage to equipment by:
Commercial property insurance covers your equipment within the property specifically listed in the policy. However, contractors depend on their equipment for their livelihood and often need to carry them to their workplaces. So, you must ensure that you are adequately financially protected against loss and damage to your equipment at all times by purchasing contractor equipment insurance. You can customize the coverage for your equipment based on your unique needs.
The contractor equipment coverage includes equipment that you own, borrow, rent, or lease. However, the coverage may vary from one insurer to another. Broadly, the items covered are:
The coverage includes a wide range of equipment, from heavy equipment such as bulldozers, backhoes, forklifts, concrete mixers, and excavators to smaller tools like hand tools, spare parts, and pneumatic tools. Also, other equipment such as scaffolding, hoists, cables, draglines, generators, and compressors may be covered by the policy.
You may own custom-made tools if you perform specialized jobs that need special equipment and tools. Since evaluating the cost and replacing such tools can be difficult, they are included under the miscellaneous coverage in the policy, but they come with item and occurrence limits.
If an on-site accident caused by a covered peril leads to debris or spillage of fuel, their subsequent removal and clean-up of the site can be covered by the policy.
Loss or damage to equipment may lead to a delay in the execution of the project. The extra fund needed to expedite the project and bring it back on track to complete it within schedule can be covered by contractor equipment insurance.
Contractor equipment or equipment floater insurance offers two types of coverage:
You can also have a policy that combines both coverages for more comprehensive protection. Besides covering equipment and tools that you want coverage for, it also offers limited coverage for unscheduled items.
At Bema Insurance, we tie up with several top-rated carriers, enabling us to provide you with comprehensive coverage at the most competitive rates. Our team has the requisite experience and knowledge to find the right policy for you based on your unique needs. We will also explain in detail the inclusions and exclusions of the insurance policy to our clients for a better understanding of the policy and go the extra mile to ensure your satisfaction.