Safeguard Transporting Your Tools and Equipment with Equipment Floater Insurance

For most contractors, their craftsmanship lies not only in their hands but in their tools. What good would you be without your equipment and tools?

If you own a contractor business, such as construction, painting, plumbing, landscaping, welding, or electrician business, your equipment is essential to your job. What would a major loss in tools mean for your business? 

For many businesses, it can be extremely detrimental. Besides the fact that you are left unable to complete projects for customers, the equipment loss itself can add up to tens of thousands of dollars. 

That’s why it’s essential to have adequate coverage to protect your business. While you might have coverage for litigations, liabilities and other risks, some of your equipment may not be properly covered. 

Certain types of equipment that’s easy to transport aren’t always covered under other commercial property insurance policies, therefore making equipment floater insurance coverage vital.

What is Equipment Floater Insurance?

This specific type of insurance policy covers equipment that is easily transported from one location to the next, rather than equipment that remains on site. This means everything from a contractor’s tools to a laptop for a consultant. If your business equipment is often transported from one job site to another, equipment floater insurance becomes a necessity. 

Some examples of what is typically covered under equipment floater insurance include:

• Bulldozer
• Roller compactor
• Backhoe
• Riding mower
• Excavator

This type of equipment is not covered under the terms of a traditional business property insurance which is underwritten based on the equipment being in a single, specific location. Equipment floater insurance covers some of the unique risks of frequently transported equipment, such as transit exposures, vandalism, fire, and theft. 

Some examples of what is excluded from equipment floater insurance:

• Automobiles (see auto insurance for your auto plan)
• Aircraft
• Watercraft

Generally, these are vehicles that are not true equipment and would be covered more appropriately under different insurance. There are also other exclusions on your equipment depending on the age of equipment, wear and tear, improper use, or mechanical breakdowns.

So, How Do You Stay Properly Covered?

1. If you have equipment that is constantly being transported from different sites, look into an equipment floater policy. Using an independent agency like Chastain Otis can find the best policy for your business that fits in your budget.
2. Be sure to properly secure and lock up tools and equipment, whether in a toolbox in the bed of your truck or on the back of a trailer.
3. Take inventory of your tools and equipment, including item description, serial number, date of purchase and purchase price.
4. Update your insurance policy when new tools and equipment are added. Your insurance cannot cover items they weren’t aware of.
5. If you ever need to rent equipment, such as a forklift, don’t assume general liability covers that. You will need specific coverage for rented equipment.

Looking to Add Equipment Floater Insurance?

Contact Chastain Otis Insurance today. We can help you determine all the different types of coverage you may need to guarantee your business stays afloat while making sure it’s at the right price for your company.