Operating heavy equipment comes with substantial risks, including risks of damage and accidents. One way Massachusetts contractors can protect against some of the risks that this equipment poses is by purchasing heavy equipment insurance.
Heavy equipment insurance is specialized commercial insurance that’s tailored for large equipment. Policies typically protect the equipment itself, and the business that owns/operates it.
Most contractors in Massachusetts that use bulldozers, excavators, equipment attachments or other similarly serious equipment should purchase insurance for their heavy equipment. Not insuring it can leave businesses without recourse if the equipment is damaged or causes an accident.
For contractors who have leased or rented equipment, insuring the equipment might not be optional. Many leases and rental agreements stipulate that contractors must purchase insurance for the heavy equipment, so it’s protected if something happens.
When insurance is an equipment leasing or rental company might offer some coverage for an additional fee. An insurance agent who specializes in this coverage can likely help contractors find more robust and more affordable policies, though, especially if leasing multiple things.
The specific claims that an insurance policy covers are determined by that policy’s terms, conditions and coverage options. Most policies offer protection against risks such as the following:
Coverage against risks such as theft, vandalism and natural disasters provides property protection for the equipment. Costs associated with repairing or replacing the equipment are generally included within these coverages.
Coverage against operator error, damage to property, and damage to utilities provide liability protection. These usually help pay legal fees and settlements associated with accidents. Considering how much an accident that damages a nearby building and utility infrastructure could cost, these are particularly important coverages.
Heavy equipment policies are available for most larger types of equipment that contractors use. Policies for loaders, cranes, skid steers, excavators, bulldozers and similar equipment is normally easy to find. An insurance agent who knows these policies well can probably find contractors insurance for any heavy equipment they use.
Will a contractor’s insurance for heavy equipment extend coverage when loaning the equipment?
Policies that provide insurance for heavy equipment may continue to cover the equipment when it’s loaned out, but they also may not provide coverage in these situations.
If contractors ever loan their equipment, they should discuss how an insurance policy will treat the situation with a knowledgeable agent. An agent can help find a solution that’ll continue coverage when the equipment is with another business.
The premiums that insurance companies charge for insuring heavy equipment vary. The size of the equipment, the type of equipment, where the equipment is used, and the business’ recent claims (if any) are just several of the factors that impact cost.
In general, however, insurance can be obtained at affordable rates. Rates certainly cost less than what replacing lost equipment or a major lawsuit might cost if there's an accident.
For help insuring heavy equipment, contact the independent insurance agents at Garrity Insurance. Our agents are familiar with the many insurance policies that contractors might need, including heavy equipment insurance. We’ll help you make sure your equipment is properly protected, and that the rest of your Massachusetts business is too.