Contractors do a lot of handy work for numerous clients. Given that any construction, repairs, manufacturing or remodels will involve numerous steps, you probably will need numerous tools. Still, if you are the contractor in charge of any job, then you have a business interest in the job and the tools required of you. You cannot, therefore, afford to lose those tools. Will your contractors insurance be able to help you when problems occur?
Indeed, contractors insurance will usually offer significant accommodations for tools and machinery. Therefore, when you begin enrollment in your policy, specifically mention to your agent that you want to know how your own coverage will apply.
Understanding Contractors Insurance
In general, a general contractor’s insurance needs are numerous. Like any other business owner, you will want to protect your business possessions because of the value they represent to the operation. In most cases, you’ll be able to obtain coverage through property insurance. Property insurance might apply not only to your business’s owned structures (your offices), but also possessions belonging to the business.
However, alongside your property coverage, you will likely need to inquire about contractor equipment insurance. This is a more-specific type of coverage that will extend specifically to your equipment, and its monetary value. Policies might cover:
- Hand tools
- Power tools like nail guns or chain saws
- Heavy machinery
- Gear like hardhats or overalls
- Certain scaffolding or work benches
- Construction vehicles, like backhoes or tractors
When Will Policies Pay?
Your equipment policy will usually cover equipment that receives damage both inside your business and on individual worksites. It might cover a variety of different perils that might trigger the damage. Fire, theft, vandalism, weather damage and other unpreventable accidents might qualify for coverage.
What Will Policies Pay?
When you have to make a claim on your equipment insurance, you may or may not be able to claim the full cost of a damaged item.
- On one hand, your policy might allow you to schedule expensive items for their full replacement cost value.
- On the other hand, smaller items might only qualify for a certain amount of recovery per item lost, such as $500 per item. The policy will also include a maximum limit it will pay, such as $5,000 for the cumulative cost of your losses.
The way to make sure your policy will include enough coverage is to talk to your agent at (410) 312-7800 about the particular items you want to insure. In that way, your agent will make sure they can extend your policy to your asset needs.
Also Read: 3 Reasons Builder's Risk Insurance is Necessary