Contractors’ Equipment Insurance
What Does Contractors’ Equipment Insurance Mean?
Contractors’ equipment insurance is an insurance policy that protects specific equipment and tools owned or possessed by a contractor. This coverage safeguards tools and equipment against various perils, including fire, theft, vandalism, and flooding, among others. Many small contractors buy a version of this as tool insurance, which covers the same kinds of perils on hand tools and smaller gear.
Insuranceopedia Explains Contractors’ Equipment Insurance
As the name implies, contractors’ equipment insurance is designed for contractors who typically own or rent expensive tools and equipment. The coverage includes mobile equipment that a contractor transports from one location to another, as well as various types of machinery. Some examples of covered equipment include, but are not limited to, earthmovers, cranes, bulldozers, forklifts, power shovels, hand tools, draglines, generators, compressors, and concrete mixers. Additionally, a contractor can insure equipment that is in their control, possession, and care, even if it is owned by another contractor. Premiums for this coverage are typically folded into a contractor’s broader business policy, which is part of why the cost of general contractor insurance varies so widely by trade and equipment value.
