Contractors’ Equipment Insurance vs. Commercial Property InsuranceIf your client oversees a business involving equipment or property, it’s essential to protect those assets against loss and damage.
Contractors’ equipment and commercial property insurance include equipment and property coverage. But because every insurance policy has limitations, it’s crucial to find one that covers all the bases.
Below, we compare and contrast these two insurance policies. Helping your client find the one that best suits your business needs.
Contractors’ Equipment Insurance – Contractors’ equipment insurance is a specific Inland Marine insurance policy designed for trade contractors, and, as you might assume, it deals with contractors’ equipment.
This insurance policy typically covers the equipment and tools your client owns as well as leased and rented equipment. It protects your client’s equipment from common risks like fire, wind, lightning, theft, and vandalism. At times, coverage can be extended to include flood and earthquake. However, damage due to normal wear and tear, would be excluded.
Perhaps the best part about this policy is that it not only offers protection while your client’s equipment is on-site at a location, but it also provides coverage while it’s being transported on land or stored in an off-site storage location or job site. For example, if someone broke into your client’s storage facility and stole tools, it could be covered under this policy. Or, if your client’s work vehicle got in an accident on the way to a job, causing fire damage to your equipment, this coverage extends to that, too.
Now, let’s compare contractor’s insurance to commercial property insurance.
Commercial Property Insurance
Commercial property insurance is a policy designed for business owners. As it protects their business buildings and the contents inside them. The coverage usually extends to the building itself, along with the equipment, tools, inventory, furniture, and documents on the premises, with the exception of some items like vehicles, money, and animals.
This kind of policy is designed to protect against fire, theft, wind, and lightning, but typically can exclude contractors’ equipment.
That said, this insurance may have its limitations. Unlike contractors’ equipment, which provides coverage in transit and off-site, the Commercial Property insurance may only cover property at your client’s business location. Therefore, if someone stole your client’s equipment at another job site or damage occurred while it was in transit, it may not be covered.
Falvey Insurance Coverage Falvey Insurance Group offers Inland Marine insurance, which includes contractors’ equipment and builders’ risk insurance. Contact us today to find out more about our insurance coverage.
