What Is Contractors Equipment Insurance?

As a construction contractor, you must understand that you cannot complete the job with your hands alone. Instead, you’ll be required to work with a handful of materials and supplies. You’ll need saws, power drills and other items. This type of equipment is immensely expensive and it is absolutely necessary. After all, you cannot afford to sit around and waste time with a traditional screwdriver. A power drill will get the job done much quicker and ensure that you put a smile on your Canadian customer’s face. This is why you must think about getting contractors equipment insurance. What is this type of contractors insurance coverage all about?

contractor equipment insurance

The Basics

So, what exactly is equipment contractors insurance? This type of insurance is actually a broad-ranging policy, which is designed to protect damaged and missing equipment. It is possible to customize your policy to get the precise amount of coverage that is needed. An example of this would be arranging a builders risk policy for construction on a project from the ground up.

Depending on the in-depthness of the coverage, you can even extend it to cover your employee’s clothing and small tools. Some companies that do construction work such as carpentry and plumbing can definitely benefit from this coverage as they carry tools to every client site they visit. Saying that, it is very common to see that regardless of the exposure existing, some contractors may not feel that have this rider on their cgl policy is necessary. Nevertheless, some employers will agree that the additional coverage is well worth the cost. Coverage starts at $50 to $100 year for the $10,000 limit. 

If you are would like to know more about how your tools can be insured or want to get more information about contractors insurance in general, you can click below and request a quote. Once you request a quote, a licensed broker will be in touch you with you to explain you coverages and provide you premium estimates.


What Is Covered?

What exactly will equipment insurance for contractors cover? As mentioned above, this type of insurance is designed to cover your company’s tools and equipment. The coverage will depend significantly on the policy in question. Usually, the policy will cover the tools and equipment up to the replacement cost. Tools and equipment that you purchase after the policy takes effect will normally be covered for a specific period of time. This guarantees that the new equipment is covered, while you’re given an additional amount of time to update your coverage.

Employee Tools And Clothing

You must also remember that your company may require your workers to purchase their own tools and clothing. If this is the case, you’ll want to make sure that your employees are protected as well. While it depends on your policy’s specifics, there is a good chance that employee clothing and tools will also be covered. Again, your specific policy will determine how much the insurance company will pay out. However, some polices will offer up to $500 per item. Others will offer $2500 per occurrence. The coverage can protect items on the job site, as well as those in transit.

contractor vest and tools

Rented And Borrowed

There are some businesses like demolition companies and that are required to rent or borrow equipment. For instance, you might not need a tile saw at all times. Therefore, you may decide to rent one for a specific job. Will rented and borrowed equipment be protected under your contractors equipment insurance? The answer is usually yes. Many insurance companies will be more than happy to protect rented and borrowed equipment. If you intend to rent or borrow a lot of equipment for specific jobs, it is a good idea to make sure that this type of equipment will be covered by your policy.

Speak with your insurance company or broker to ensure that these items will be covered. In most cases, if you work for a big construction company, you and your tools and covered under the company’s policy. In the event you are an independent contractor taking on jobs, you still need to be insured under a policy as being a sole proprietor does not eliminate risk or the chance of getting sued. You can read about why independent contractors need insurance by clicking on this link

borrowed saw table for job

Cleanup Of Pollutants

A lot of construction equipment requires oil, fuel or hydraulic fluid. If something goes wrong, there is a possibility that the fuel is going to spill out and create a huge mess. This is why you should get contractors equipment insurance. In many cases, this type of insurance will also cover the cleanup of pollutants after equipment damage. Again, the specifics will depend on the precise policy that you have. If you use a lot of equipment that utilizes fluid or fuel, it is in your best interest to obtain equipment insurance. You’ll be glad that you did in the near future.

contractor pollution clean up.

Other frequently asked questions before buying insurance:


Areas where we commonly provide insurance:








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