Learn About Getting Insurance For Your Construction Equipment

Construction equipment insurance is a must if you are a contractor or work in the construction field; tools and heavy equipment are most likely your livelihood. Without these things, you would be out of business! The types of machines, tools and other equipment used in construction can be extremely costly. This is why you want to make certain that they are covered in case of loss, damage or theft. The information below offers tips on how to find construction equipment insurance that not only meets your coverage needs, but is affordable as well.

Two types of insurance you should consider

There are actually two types of construction equipment insurance that may both apply to your needs, and are often contained in a single policy.

A commercial property policy is standard, and provides coverage for anything deemed business personal property such as computers, tools, equipment, phone systems, office furniture, etc. In other words, this policy covers any property that is within a 100 foot radius of the address displayed on the property, other than any limitations or exclusions stated in the policy.

The drawback here is that heavy equipment and tools you normally use on other property is not covered. If you work in construction, you may find that much of the time you are not working on your own property, so what do you do about construction equipment insurance at this point?

Inland Marine policy

Yes, the title sounds strange but the story of how construction equipment insurance earned this name is far too long to go in to.

Basically, this coverage is divided in to three categories that may apply to you:

Contractor's equipment floaters
Installation floaters
Builders risk

Contractor's equipment floaters - This section of the Inland Marine policy covers equipment and tools, with items that are worth under a certain value lumped together and placed in a "Miscellaneous tools & equipment" category.

Installation floaters - This section of the construction equipment insurance policy covers building materials that may be setting on-site while you are in the middle of a construction project. This coverage is in effect during the time the materials are in transit as well, and stays in effect until the materials are actually secured to the building or structure that is being repaired or newly constructed.

Builder's risk - This coverage protects the structure that is under construction against physical loss due to fire, vandalism and other circumstances (earthquake and flood damage are normally excluded.) This protection normally begins on the date construction starts and remains active until the date the project reaches completion.

Construction equipment insurance is absolutely necessary to protect your assets. Shop around online to find the coverage you need as well as rates you can afford. Always be certain to research the reputation of the provider, and compare policies closely to make certain that when shopping quotes you are comparing the exact same coverage in each policy.