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 construction equipment - backhoe

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.

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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.

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About the Author: Aharshan Thangarasa

Aharshan Thangarasa is a licensed commercial insurance broker and Team Lead, Contractors, at Zensurance.