Contractors and construction workers face many high-level risks every day at the various construction sites where they work. These job sites are fraught with danger, which is why these professionals rely on insurance to protect them from the costs of the common construction insurance claims they may face.
Enhancing safety, taking preventative measures to avoid accidents, and mitigating financial and productivity losses are priorities for all construction project teams, including protecting the heavy equipment they use.
Heavy equipment insurance, sometimes called inland marine or tool and equipment insurance is a must-have for business owners and contractors who own or rent any transportable tools or equipment they need to complete their building or renovation projects.
Related Posts
Sign Up for ZenMail
"*" indicates required fields
Categories
What Counts as Heavy Equipment?
When we think of heavy equipment or machinery, think of heavy-duty vehicles. These vehicles are designed to tackle construction tasks and earthwork operations ranging from road and railway bed construction to topsoil and rock excavations, dredging, and land grading.
The most common types of heavy equipment construction, excavation, and mining companies use include:
- Backhoes
- Bulldozers
- Compactors
- Cranes
- Dump trucks
- Excavators
- Hydraulic mining shovels
- Loaders (front loader, bucket loader, payloader, wheel loader)
- Motor graders
- Telehandlers or boom lifts
Concerning tools and equipment insurance, any item that’s worth $1,500 or more is considered to be heavy equipment. Items worth less than that amount are tools – hand tools, power tools, safety gear, and measurement devices.
What Heavy Equipment Industries Need Protection?
Wherever a contractor works or goes, their contractor insurance policies go with them. The same applies to heavy equipment insurance for all kinds of professionals, including:
- Arborists
- Commercial or residential builders
- Construction contractors
- Excavation experts
- Landscaping and hardscaping professionals
- Logging companies
- Oil and gas pipeline construction professionals
- Renovation experts
- Road construction crews
- Snow removal operations
What Does Heavy Equipment Insurance Cover?
A heavy equipment insurance policy provides financial support if your equipment is lost, damaged, or destroyed because of theft, vandalism, fire, flood, or a natural catastrophe resulting from extreme weather, such as a landslide.
Your policy will not pay for damage or loss to your equipment due to poor or irregular maintenance, wear and tear, deliberate acts to damage the equipment, or repair or replace equipment that’s beyond its useful lifecycle.
Does Heavy Equipment Insurance Cover Equipment You Lease?
Insurance for construction companies typically includes tools and equipment coverage. If your firm leases heavy equipment it needs for a project, check with a licensed insurance broker and ensure the vehicles you lease or borrow are covered. Depending on your insurer, you may not have coverage under your existing construction or contractor insurance policy to account for heavy equipment.
Start by thoroughly reading the leasing agreement for the equipment in your possession. It may state you are required to buy additional heavy equipment insurance. If so, you can add an endorsement to your existing policy to ensure the equipment you rent, lease, or borrow is fully protected.
Getting the Heavy Equipment Insurance Protection You Need
Don’t take chances with your finances or expensive equipment. Protect your business and assets with tools and equipment insurance by filling out an online application to get a free quote from Zensurance.
We’ll shop our network of over 50 insurance providers to find you the coverage you need and customize it to meet your requirements and budget.
Recent Posts
Is Your Small Biz Underinsured? How to Tell and What to Do If It Is
Discovering your business is underinsured often happens after a loss, lawsuit, or cyber incident – when it’s already too late. This guide helps Canadian small business owners identify coverage gaps before they become financially devastating.
8 Reasons Why Your Small Business Needs Legal Services Insurance
Legal services insurance may not be top-of-mind for small business owners, but it's vital coverage for a wide range of issues. Here's why you should think about adding it to your policy.
What Happens If Your Small Biz Doesn’t Have Workers’ Comp?
Failing to register your company with your province’s workers’ compensation board and going without workers’ comp insurance can lead to significant financial and legal consequences. Here’s what every Canadian small business owner or sole proprietor needs to know.