Contractors regularly use tools and heavy equipment on job sites, where they’re susceptible to theft, damage and other risks. While contractors should take steps to protect their tools whenever possible, purchasing tools and equipment insurance can provide Massachusetts contractors with financial coverage should something still happen to the items.
Tools and equipment insurance is specialized commercial insurance for contractors’ tools and heavy equipment. Coverage normally provides protection when these items are at job sites.
Most Massachusetts contractors who work on job sites should have tools and equipment coverage. This includes general contractors, subcontractors and independent tradespeople.
Moreover, contractors should consider coverage regardless of what tools or equipment they use. Replacing heavy equipment is obviously costly, but replacing a collection of professional-grade hand tools can also cost a lot.
Depending on the specific terms of a policy, tools and equipment coverage might protect against a variety of risks. These may include:
Any coverage for breakage typically excludes breakdowns that are due to corrosion, wear and tear, or mechanical failure.
Many policies extend these protections to when tools are on job sites, in transit, or in storage.
These policies are able to protect most tools and equipment that contractors use. Coverage is readily available for:
Most policies provide blanket coverage for tools and equipment up to a certain value, lumping all of these items under a single limit. More expensive heavy equipment is frequently covered under a different limit that’s specific to each piece of equipment.
For covered claims, tools and equipment policies might help with several associated expenses. Specifics again depend on terms, but covered expenses can include:
Most insurance companies don’t require receipts when purchasing tools and equipment policies, but contractors should save any receipts that they have. Contractors will have to prove ownership if they file a claim, and receipts are the easiest way to show ownership.
This isn’t to say that the only way to prove ownership is with receipts. If receipts are unavailable, then repair records, photographs, and other documentation can usually be used. Receipts are preferable because they show the exact item and price, but they aren’t the only documents accepted.
An insurance agent who specializes in tools and equipment policies can help contractors maintain records of their tools and equipment, in case they ever have to file a claim.
The premiums charged for tools and equipment policies vary. The types of tools/equipment being insured, the locations where tools are taken, the contractor’s claims history, and the policy options all normally impact cost.
Despite premiums varying, however, this coverage tends to be quite affordable. An independent insurance agent can help contractors find out exactly how much they’d pay for a policy.
For help insuring tools and/or equipment, contact the independent insurance agents at Garrity Insurance. Our Massachusetts agency can help you review policies from different companies, and we have the expertise needed to help you select the one that affords what protections your business needs.