If you run a construction or general contracting company, you already know that protecting yourself with commercial general liability insurance is a necessary cost of doing business. What you may not know is that your tools and equipment are not fully covered or covered at all if they are stolen.
How many thousands of dollars worth of tools and equipment have you acquired for your business over the years? Even to get started, a significant investment in tools is usually required. For most contractors, tools insurance coverage is a must-have.
An important consideration when shopping for contractors insurance is tool coverage, which specifically protects the tools owned by your business, whether they are in your truck or at a client’s location. From an insurance viewpoint, tools are generally considered to be items costing $1,000 or less. Examples of contractor tools you’ll want coverage for include:
Take note – your personal vehicle policy does not cover tools and equipment being transported for business purposes. Imagine one morning discovering that the cargo trailer storing all of your tools has been stolen! At least you will be able to resume operations quickly with the right coverage in place.
From an insurance viewpoint, equipment is defined as items worth over $1000 to acquire. For these more expensive pieces of equipment, we’ll help to have these itemized in your policy for appropriate coverage for theft or other type of loss. Equipment coverage usually applies to items you have rented from a dealer or borrowed from another contractor.
Examples of contractor equipment you’ll likely want fully insured include:
Depending on the size and type of your operation, there are some other contractor coverage options that could be valuable protection.
There are many other options geared to specific types of contractors and specialized construction, such as crane operators, office trailer coverage and work on ice or soft ground, to name a few.
If you run a construction or general contracting company, tool coverage is a necessity. Examples of contractors who should never overlook this coverage include:
To be sure you have the right coverage for your tools and equipment, talk with a commercial insurance expert. Feel free to Mitchell & Whale Insurance Brokers today at 1-800- 731-2228 or email me at email@example.com.