Specialized Equipment Insurance for Construction Companies

Construction companies often rely heavily on specialized equipment to complete projects efficiently and safely. Cranes, bulldozers, excavators, loaders and other machines may be essential for daily operations. However, the high cost and critical nature of this equipment make it imperative for construction companies to cover their investments through suitable insurance.

What Types of Insurance Does My Construction Company Need for Its Equipment?

Covering your business’s equipment with a single insurance solution may not be possible. Instead, you might need several policies or endorsements to secure suitable coverage. The following types of insurance may be necessary:

• Commercial property insurance—These policies can financially protect your tools, equipment and machinery while at your business’s location. Standard policies may include many common incidents and perils, such as fires, theft, vandalism, vehicle collisions and explosions.
• Equipment breakdown insurance—This can cover the costs of repairing or replacing equipment that breaks down due to mechanical or electrical failure and may be crucial for minimizing downtime and helping projects stay on schedule.
• Inland marine insurance—This type of insurance can cover equipment and materials transported over land or stored at a job site against accidental damage, theft and other losses.

What Exceptions Should I Know About?

Even if you’ve done your due diligence and purchased the aforementioned insurance policies, you should understand possible exceptions, such as the following:

• Wear and tear—Standard insurance policies often exclude coverage for damage from normal wear and tear. Regular maintenance and inspections are necessary to keep equipment in good working condition.
• Improper use—Damage caused by improper use or operator error may not be covered. Training employees on proper equipment handling and usage can help mitigate this risk.
• Unscheduled equipment—Some policies require that all equipment be listed and scheduled for coverage. Unlisted equipment may not be covered, so it’s important to keep an updated inventory.

We’re Here to Help

Contact North American Marketing Specialists Inc in Mineola, NY, today to work with one of our knowledgeable agents and find the right coverage for your equipment.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.