How to Insure Your Construction Equipment and Tools

Working in the construction industry often requires expensive and specialized equipment. The right machinery, tools and other gear are essential for completing jobs on time and up to specifications. Furthermore, appropriate functionality may be necessary for employee and jobsite safety. With these things in mind, covering your equipment and tools with appropriate insurance policies is critical.

What Types of Insurance Do I Need?

While you might think that insuring tangible assets like tools, equipment, machinery and gear is a simple matter, this misconception could have costly consequences. For many in the construction industry, covering physical property requires a multifaceted approach, including investing in multiple types of policies.

Consider how the following types of insurance may contribute essential financial protections for your overall coverage:

• Commercial property insurance—A staple of many businesses’ insurance packages, this type of policy can cover equipment and tools while at your place of business, including from fires, theft, vandalism, explosions and certain types of water damage.
• Inland marine insurance—This is a particularly prevalent form of insurance for those in the construction industry. Since you’ll likely be taking tools and gear off-site, you’ll need this type of coverage, as it can pay for losses occurring while equipment is in transit or stored at client locations.
• Equipment breakdown insurance—While commercial property insurance may cover many incidents that could impact your gear, you’ll also typically need this type of coverage to account for malfunctions and breakdowns.

While the aforementioned types of insurance may be suitable for most in the construction industry, you’ll also want to consider any additional coverage needs relevant to your business’s operations or location. For example, if you’re in an area prone to flooding, you should be aware that standard commercial property insurance policies do not typically cover losses caused by external water, meaning you’ll need alternative coverage.

We’re Here to Help

At Bama Insurance Services, we can help construction businesses in and around Birmingham, AL understand and procure ideal policies. Contact us today to get started.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.