When your contractor is at a job site, their equipment is often one of the most important assets. Still, many contractors don't realize that they need to insure their equipment to protect themselves financially if it gets damaged or stolen.
Understanding how to insure your contractor's equipment is a critical part of protecting your business. It's not something you want to leave until the last minute, so it's best to have a look at your insurance needs before any issues arise.
Here's a list of some important things that you'll want to consider before insuring your equipment.
A contractor's equipment insurance policy is often characterized by three parts: commercial property, business income (or extra expense), and physical damage. These policies will cover the necessary tools of your trade for both bodily injury or property damage. Most of these types of policies have limits on a per-item basis rather than on an overall total value.
Consider what you need to cover to protect your business well. It's a good idea to list out everything that appears on invoices and receipts so that you can get good coverage for items such as ladders, scaffolding, and lifts. Also, remember that commercial property insurance does not cover damage due to fire or explosions, so you'll need to add on a fire policy if that's a concern for your business.
Getting a contractor's equipment policy can be a bit more complicated than getting general liability insurance because you will need to list out everything covered by the policy. You will also need to add on extra coverage such as fire or vandalism if it pertains to your business in any way.
It’s a good idea to get general contractor's liability insurance online since that’ll save you valuable time and protect you from a wide range of construction accidents and basic risks. Additionally, this insurance can help you pay for property damage, legal fees and judgment, and medical payments.
Here are a few reasons that you should consider insuring your contractor's equipment:
Some of the most commonly covered items under a contractor's equipment policy include:
Even if your contractor uses any of the above items on the job site daily, you will need to list each item individually to add coverage. If there are any questions regarding whether or not certain items are covered, ask your insurance agent to find out.
There are a few ways that you can save money on your contractor's equipment insurance:
Even if you don't have the most advanced equipment on the market, you've still spent a lot of money to get your business started. When you insure your contractor's equipment, you are protecting both your business and the job site.
Insure any items that would be costly to replace or repair yourself if they were damaged or stolen. Protecting your business is crucial for its success, so hiring experienced insurance professionals can help make sure that this task gets done right.