Are You Insured? Key Considerations to Protect Companies & Equipment

Owning heavy equipment is an investment with the goal of utilizing your machinery for years to come. However, accidents are not uncommon at job sites, regardless of what industry you work in. Instead of the expense coming directly out of your pocket for those repair costs, it could be covered by an insurance policy. We’re breaking down six key considerations for heavy equipment insurance to protect both companies and the machine itself.

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Cost of Heavy Equipment Insurance

The cost of heavy equipment depends on a number of factors. What industry do you work in? Where are you located? How much is your machinery worth? All of these questions play into the cost of your insurance premium. The coverage amount, limits, and deductibles also affect the cost of your policy.

Determining Your Coverage

Insurance carriers will ask you for several details when helping you determine your potential coverage, such as the make, model, and serial number of the machinery you’re thinking about insuring. Along with the type of equipment you want to cover, the estimated cost of repair and replacement also affects your coverage. Other considerations include where you store your machinery and if it travels beyond your business.

Professionals Can Benefit from Insurance Most

If operating heavy equipment is a major part of your business, consider getting insurance. Professionals such as carpenters, contractors, landscapers, and construction companies face the biggest financial loss if their equipment becomes inoperable and they can’t afford to fix it. Insurance can replace your heavy machinery and cut down on the downtime when the equipment breaks.

Insurance Can Cover Theft and Vandalism

When you traditionally think of insurance, you may focus most on coverage for damaged or inoperable equipment. However, many insurance policies also cover heavy equipment theft and vandalism. This insurance coverage can pay to replace heavy equipment that’s stolen when traveling or stored away from your business’ primary location. Some policies can also pay to restore your equipment to ideal working conditions when vandalized.

Ask About What’s Not Covered

When searching for heavy equipment insurance, be sure to ask what isn’t covered by your policy. Typically, these types of insurance policies don’t cover corrosion, rust, and normal wear and tear. You should also be sure to read your policy carefully to know its limits. If the cost of a repair or replacement piece of equipment exceeds your policy, you won’t be covered.

Insurance Can Cover Rented Equipment

Heavy equipment insurance isn’t just for people who own equipment. If you’re renting a piece of heavy machinery to do some work on your personal property, you can also get insurance coverage. Some insurance carriers will cover rented and borrowed equipment. This coverage can pay for damages to the rented, borrowed, or leased equipment. Similarly, there is also coverage for policyholders who rent their equipment out to individuals and other businesses.

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Purchasing a heavy equipment insurance policy can be beneficial for businesses looking to protect their valuable assets. There are several benefits that may make the cost of an insurance premium worth it, so consider a policy that’s ideal for you.