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Does commercial insurance cover tools and equipment?



As a contractor, you can not complete a job on a T without your reliable tools nearby. And it is also true that transporting to a website and using them involves certain risks such as theft or damage that can cost you some money. To stay protected in the event of damage to or from tools and equipment, entrepreneurs seek refuge in insurance. Read on to know more.

So, are my tools and equipment covered by commercial insurance?

Yes, it does, but there are some things you should know before signing that insurance form. First, your simple commercial insurance does not cover your equipment and tools. So you need to get the contractor's tools and equipment insurance. This one is specially made to protect your tools if they are damaged, lost or stolen . Here are some things covered by it:

  • Small tools
  • Mobile equipment
  • Toolbox
  • Some kind of machinery

This type of insurance is usually designed for construction and construction companies that do various on- place job. Depending on your policy, it can also cover items in addition to equipment such as employee equipment, clothing, borrowed equipment and small tools.

However, all equipment must be specified in the policy contract to be covered. Some companies also require that the tools should not be over 5 years old, otherwise they can not be covered. The policy can also pay for the damage that occurs due to defects in the equipment.

For example, if a conveyor breaks down when you move debris from the construction site and all the dirt and mud falls on the site, the insurance company can also pay for the remediation of the area. However, you must include this clause in the insurance as it may not come as standard.

Will it cover rented or borrowed equipment?

This depends on the insurer you work with, but for the most part, borrowed or rented equipment is also covered by the contractor's tool and equipment insurance. Because a company cannot buy all the tools and equipment needed for the job (some can be very expensive or have minimal use), they rent it out.

Insurance companies understand this, which is why they offer different amounts of coverage to pay for equipment damage at work or during transit. This works in both directions, ie if the insured company rents out its equipment to someone, it will also be protected.

However, be sure to go through your fine print with a magnifying glass to ensure that all types of equipment, use and rental / loan terms are mentioned according to your needs.

Contractor's tools and equipment Insurance cost: [1

9659003] The cost is determined by the total coverage amount, which can range from a few hundred dollars to several thousand dollars. So when insurance companies spread the numbers for your insurance often look at the following factors:

  • Industry risks
  • Equipment and tool value
  • Named danger against open risk (the first involves covering specific tools while the second one is for all tools in general)
  • How often you move or use your equipment

There may be a few more considerations, and depending on your type of business and the risks, the monthly insurance cost will increase or decrease. To learn more about commercial insurance, contact our team at 860-684-5270 or visit our website at www.paradisoinsurance.com.


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