Construction Equipment Insurance
Contractors Insurance is one of Ontario’s most trusted commercial insurance brokerage firms. We specialize in providing personalized insurance bundles for professionals, independent contractors, and other businesses. One of the types of insurance we provide is construction equipment insurance.
Construction equipment insurance is a must if your business owns, leases, or rents tools and equipment needed for your day-to-day operations. Construction equipment insurance protects your business from financial loss if they are damaged, vandalized, or stolen.
Contractors Insurance has provided numerous businesses with comprehensive construction equipment insurance and other policies to address unique business risks. We have also won multiple awards for the dedicated, end-to-end service that we provide.
What Is Construction Equipment Insurance?
In the world of insurance, tools and equipment are two different things. Construction “tools” are items used for the job that are valued at less than $1000, while “equipment” are big-ticket items valued beyond $1000.
Sometimes, insurance for tools is included in builder’s risk insurance or what’s known as installation and tool floater insurance. However, construction equipment insurance is a standalone policy more specific to covering tools and more expensive equipment.
To go further into detail, these are the coverage points of personalized construction equipment insurance:
Repair or Replacement Costs
In the event that your owned, borrowed, or rented equipment is damaged, vandalized, or stolen, construction equipment insurance will cover the repair or replacement costs within your insurance plan’s coverage limit.
If you rent your construction tools and equipment to clients, construction equipment insurance will reimburse lost rental costs while they are getting repaired or replaced.
Who Can Benefit From Construction Equipment Insurance Coverage?
Construction equipment insurance will be a beneficial addition to your risk management strategy if:
- You own, rent, or borrow construction tools and equipment.
- You rely on your tools and equipment to get everyday tasks done, and your projects are usually within tight deadlines.
- You have a builder’s risk insurance in place, but it does not cover more expensive equipment or does not cover tools and equipment at all.
The above qualifiers give an idea regarding the potential risks surrounding tools and equipment, which are not just investments worth protecting but also key to keeping your business running.
Why Is It Important for Ontario Contractors to Have Construction Equipment Insurance?
When something happens to your company equipment, the resulting delays and wasted man-hours compound the financial loss of repair and replacement even more. If delays are prolonged, this can even stall the project, exposing your business to the risk of a client lawsuit.
CGL Claims Examples
Claims Example #1
On the way to a construction site, an excavator that your business rents out meets an accident with a truck carrying gravel. The excavator is badly damaged.
The damage to the excavator makes rebuilding or repairs ineffective. Construction equipment insurance will cover the replacement costs totalling $25,000.
Claims Example #2
As a contractor, you keep most of your tools and equipment inside a trailer you bring with you on various projects. While preoccupied, your trailer gets stolen.
Construction equipment insurance will cover the replacement cost of the items inside the trailer, totalling $15,000.
Claims Example #3
Overnight, the construction site was visited by vandals who stole from the site and did minor damage to the parked heavy equipment.
Construction equipment insurance will cover the repairs and replacement costs totalling $20,000.
Leading Provider of Construction Equipment Insurance in Ontario
One of the reasons we can build long-lasting relationships is that we always put the customer first. We overcome common obstacles in commercial insurance, making us stand out from the rest. These are the benefits that we offer:
Personalized Insurance Plans
Our personalized insurance plans are tailor-fit to the unique risks of your business. With our insurance plans, you can get the exemplary coverage you need without the added costs of unnecessary riders.
Utmost Transparency on Coverage and Limitations
Nowadays, clients crave more transparency regarding insurance, yet most insurance companies hide behind jargons. With Contractors Insurance, you can expect to know your insurance plan the same way that we do. You will learn the full extent of your coverage, including its limitations and exclusions.
Thorough and Straightforward Insurance Education
We consider our clients as our partners. Count on us as a reliable source of insight and expertise in commercial insurance and risk management. Any time that you have questions, we’re always just a phone call away.
Frequently Asked Questions About Construction Equipment Insurance
Various factors can affect the cost of construction equipment insurance. One of the major considerations is what tools and equipment need to be insured. The average cost of construction equipment insurance would be around $100 per year for a coverage limit of around $10,000.
The coverage limit can be much higher than $10,000, but this would also mean that the annual premiums fee would increase. There is no fixed amount for the coverage limit; it mainly depends on what your business needs.
Though construction equipment insurance coverage is not legally required, many contractors and equipment rentals opt to secure this to protect their valuable properties.
Typically, damage of tools and equipment due to wear and tear is NOT covered by construction equipment insurance. However, damage due to vandalism, accidents, and the like are covered.
Ready to Get the Coverage You Need?
Contractors Insurance is an award-winning insurance brokerage dedicated to personalizing insurance for clients in the construction and trades industry. Whether your business is new or has been operating for years, we are here to assist you with all your insurance needs.
Certain tools and equipment are needed for your business’s everyday function. Let us help you insure these valuable items so that you can have peace of mind no matter what.