Contractors Equipment Insurance

Is your equipment adequately covered?

The large items of mobile equipment that are used by contractors in construction projects, and sometimes by other types of organizations as well, are generally referred to as contractors’ equipment. Commercial property policies usually do not exclude contractors’ equipment, but they generally do not provide adequate coverage on this type of property. Contractors equipment insurance is written on an inland marine policy and is designed to address the mobile nature of this property and the unique hazards to which it is exposed.

Covered Property

Contractors equipment policies can be written on a scheduled basis, a blanket basis, or some combination of the two. In scheduled policies, only the items listed in the policy’s schedule of covered equipment are covered unless coverage for certain unscheduled items is granted elsewhere in the policy. (For example, the policy may contain a provision granting temporary automatic coverage for newly acquired equipment.) In blanket policies, coverage applies to all qualifying equipment; there is no schedule of covered equipment in the policy (although the insured usually is required to submit a schedule for purposes of premium calculation).  

Excluded Property

Most contractors equipment policies specifically exclude a few types of property from coverage. The list below shows several types of property that are commonly excluded from coverage under a contractors equipment policy.

  • Equipment leased, rented, or loaned to others
  • Vehicles licensed for road use
  • Office and utility trailers
  • Watercraft
  • Aircraft
  • Waterborne property
  • Airborne property
  • Underground property
  • Property under water
  • Contraband or property in the course of illegal trade
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