What Does Equipment Insurance Cover?

Commercial contractors make their living with their hands, but also with the help of heavy equipment. The start-up costs of obtaining this machinery are substantial, so most professionals protect their investment with equipment insurance coverage. Here is what it covers.

Large Equipment

Equipment insurance covers the cost of fixing or replacing damaged or stolen equipment. Included are large machines such as bulldozers, backhoes, and jackhammers.

Employee Tools and Clothing

Equipment insurance also covers smaller tools and specialized clothing needed for the job. If someone steals or damages these items on the job site or on the way to work, the employee will be reimbursed up to a certain dollar amount per tool.

Rental Equipment

Many contractors find it more economical to rent, rather than to purchase, certain pieces of machinery. When they invest in equipment insurance they do not have to worry about owing money to the owner if they accidentally damage it.

Pollutant Cleanup

Machines often make a mess when they break down. If leaking fluids are known pollutants, equipment insurance covers the costs associated with cleaning up the spill.

Equipment insurance takes effect immediately, covering all the tools currently owned. If new tools are purchased during the period of the policy, they are usually included as well.