Construction Equipment and Contractor’s Tool Coverage
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.
Insurance Coverage for Contractor’s Tools
An important consideration when shopping for contractor’s 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:
- Hand tools such as hammers, wrenches, crowbars, saws, and screwdrivers
- Power tools such as power drills, heat guns, sanders, power saws, and grinders
- Contractor gear such as hard hats, goggles, gloves, knee pads, tool bags, belts, and uniforms
- Other contracting tools including shovels, wheelbarrows, ladders, and cleaning supplies
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.
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Insurance Coverage for Construction & Contractor Equipment
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 types 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:
Other Contractor Insurance Options
Depending on the size and type of your operation, there are some other contractor coverage options that could be valuable protection.
- Replacement Cost: this gives you the replacement cost of any insured item, which could be very helpful for more expensive items
- Rental Expenses: this reimburses you for the rental costs of the equipment you rent due to an insured loss. If you have any equipment that could take weeks to replace, this could be an important addition to your policy
- Installation Floater: this protects materials left at a job site to be installed but is damaged before you can do it. For example, if you drop off a number of windows to be installed but find them all vandalized and broken the next morning, an installation floater will cover this scenario
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.
Do You Need Insurance Coverage For Your Tools?
If you run a construction or general contracting company, tool coverage is a necessity. Examples of contractors who should never overlook this coverage include:
- Bricklayers & masons
- Basement contractors
- Flooring contractors
- General contractors
- HVAC technicians