Contractor’s Equipment

Whether you own, rent or lease equipment for your business, some form of equipment insurance is necessary to protect your assets and to reduce your loss in the event of damage to company owned machinery and heavy equipment. However, before you purchase an equipment policy, it’s important to review it carefully to understand policy deductibles, coverages, and limits. We recommend you place specific emphasis on the following items of emphasis below.

 

Scheduled Equipment Items
If a heavy piece of equipment or tool is left off of the schedule and during the policy year becomes damaged, you could have a problem filing a claim on that damaged piece of equipment or tool.  The Maxwell Insurance Group takes considerable care and time into double checking that the a businesses’ schedule is complete, current, and accurate.  Many equipment policies include language which only covers specifically scheduled items.

Equipment Valuation
We highly recommend that you choose a policy that will provides replacement cost of damaged equipment or on a stated amount basis.

Coverage for Leased or Rented Equipment
If a business has already started working on a project and they need to rent a piece of equipment, it is important that they already know that their policy covers for any leased or rented equipment with a sub limit to provide for flexibility of choosing a sub limit for each piece of equipment. It is best to be proactive and not reactive for this coverage without having to change insurance companies mid term. If desirable, we take steps to ensure that this coverage is available when needed.

Co-Insurance
Co-Insurance protects the insurer in the event that any equipment has been undervalued. It’s typically 90 or 80 percent. We make sure owners understand their risk to value their equipment carefully when buying a policy. We also aid in the process of the valuation of equipment items.

Equipment In Transit
We understand the importance that policies have options to include equipment while in transit to and from the job-site. We provide coverage that may be underwritten with a sub-limit and may be subject to a deductible if desirable by the owner.

Rental Reimbursement
If equipment is damaged and owners have to rent a replacement in order to continue a project, they don’t want to incur the expense out of pocket. Some insurance policies will reimburse an owner for rental expenses when you file a claim. Others will also cover overtime wages ,if needed to complete the project, and transportation of the rented equipment to your job-site. If this coverage is desired by the owner, we can provide to the owner.

Exclusions
For obvious reasons, it is very important that an agent communicate what policies won’t cover. Common exclusions include damage caused by flood, earthquake or war as well as normal wear and tear, rust and corrosion. An insurance policy may contain wording which excludes equipment stored or operated underground, boom crane collapse, and equipment not included on the schedule. We educate owners on exclusionary wording that may be found anywhere in the policy, not just in the designated exclusion section, so it is important that you have an agent whom can read policy wording and advise which policy is applicable for their type of business.