Tag: Commercial Equipment Insurance

When You Need Commercial Equipment Insurance

Bob Holtzman

Commercial equipment insurance is also known as contractors equipment insurance. It pays for theft or damage to contractors’ tools and equipment.

Commercial and residential property owners who own or lease equipment for construction projects need commercial equipment insurance.

A typical commercial equipment policy covers hand tools, power tools, and construction-related vehicles. Mobile items such as forklifts, backhoes, tools, padding, dollies, etc., are covered under a commercial equipment policy. The policy’s protection can extend beyond a contractor’s equipment to include employees’ tools, clothing, and borrowed equipment. Depending on the policy details, additional gear, including mobile offices and trailers, may also be included in the coverage or can be added at a later date.

Commercial Equipment Is Different from Commercial Property Insurance

It’s essential to know a commercial equipment policy is similar but different  in its coverage from standard commercial property insurance. For example, commercial property policies exclude coverage for contractors’ tools, which creates the need for commercial equipment insurance.

The conditions and needs for coverage of contractors’ equipment are varied and unique, which requires a specific and separate underwriting process than in a standard commercial property policy. Understanding these differences is why using a brokerage like Western Truck Insurance who are dedicated to your business model is advantageous to your business and bottom line.

Commercial equipment policies typically  cover:

Forklifts,  pallet jacks,  various handtools, freight packaging protections

Construction machinery like backhoes, graders,  dozers and conveyor systems.

The coverage may also include :

  • Total Loss due to theft or fire.

Theft-deterrent devices that prevent the unauthorized use of covered equipment.

  • Loss control services such as locksmiths and security guards.
  • Replacement cost coverage.
  • Coverage for replacement parts and labor costs for repairs.
  • A deductible for each item of covered equipment.

Western Truck Insurance is here to help you determine how to protect your business loss exposures. However, we know getting the right coverage is essential to you, which can be unclear because insurance policies use many similar terms to describe similar coverages.

 Western Truck Insurance Solutions

Our mission is to provide comprehensive coverage at competitive rates, including commercial property and commercial equipment insurance and other appropriate trucking business insurance policies.

Western Truck Insurance operates to the highest ethical standards. It seeks to earn your trust with clear communication and full disclosure, sharing and receiving helpful information, and maintaining a genuine interest in your concerns.

What’s the Difference Between Commercial Property and Commercial Equipment Coverage?

Bob Holtzman

For many property owners, the need to carry insurance to protect their land and everything on it is a standard and vital need. Property owners should evaluate what needs to be protected and then re-evaluate on a regular basis to ensure overall integrity.

But the decision to protect everything from heavy equipment to the garages, per se, that house them can bring some confusion. Ultimately, it’s imperative for business owners to invest in the right coverage to protect what is theirs, and educating oneself in regards to finding the right policy or policies needs to be at the beginning.

When a transportation company fires up a new big rig, they reach for dependable truck insurance. So why shouldn’t a business that operates with machinery or houses such equipment find coverage? Let’s take a look at the different between commercial property insurance and commercial equipment insurance:

Commercial Property Coverage

Depending on your company’s location, you may not be required by law to obtain commercial property insurance. However, a business may be required to do so by their lender. Most business owners make a choice to purchase this kind of insurance policy because of the wide range of protection that it provides.

Property that is being leased can also be insured under this policy as well as property that is owned by somebody else. Commercial property coverage provides insurance for any number of buildings, finished additions,  and other business personal property that are part of a business operation.

Specifically, this coverage applies protection for various types of commercial property. You can equate this to coverage for buildings and personal property  in a business. What’s more, if a business suffers a loss, commercial property insurance can provide coverage for lost income and extra expenses. Make sure to assess everything that needs to be covered or have an insurance broker determine what and how much needs to be put under a personalized policy.

Commercial Equipment Coverage

Commercial equipment coverage is also referred to as contractor’s equipment coverage. This policy provides protection for various equipment and machinery from physical damage. This policy goes a step further beyond commercial property insurance by covering what is not designed to be protected under the policy above.

Consider this: Does your business use heavy equipment such as tractors, backhoes, and forklifts? Then this coverage is tailor-made to protect against damage of those items. More often than not a business’s assets are tied up in heavy equipment, making this kind of protection a high priority.

Most people think that a policy like this only refers to physical damages, but it also includes loss due to theft. Stolen heavy equipment numbers are on the rise and commercial businesses need to do what they can to protect against such loss. Depending on where you are at in the country, your heavy equipment may be at a higher risk of being damaged or stolen.

Be sure to work with an insurance broker to understand what your business needs in terms of coverage and what needs the most protection.

About Western Truck Insurance Services

Western Truck Insurance Services is much more than a commercial truck insurance agency. Since 1954, we have provided our clients with unparalleled service for truck insurance quotes, customer service, coverage charges, insurance certificates, and more. We are committed to providing our clients with the service to keep their costs to the minimum and their opportunities to the maximum. For more information about our products and services, give us a call at (800) 937-8785 to speak with one of our experts.