Construction Equiptment

Contractors’ equipment insurance covers equipment and tools at construction projects and jobsites. This coverage is sometimes called a “floater” because the coverage follows the equipment from one jobsite to the next and also while equipment is in transit. Coverage is provided to protect against perils such as theft, vandalism, fire, windstorm, and typically flood and earthquake as well. This type of coverage can be written as a standalone policy or in conjunction with a Builder's Risk policy or other package policy.

The type of equipment covered by contractors’ equipment coverage is wide-ranging. Covered equipment typically includes, but is not limited to, the following:

  • Mobile equipment
  • Hand tools, shovels and hammers
  • Large power shovels
  • Cranes and earthmovers
  • Bulldozers, road-graders, forklifts, loaders, backhoes and concrete mixers
  • Derricks and draglines
  • Compressors, generators, hoists, pneumatic tools, cables


As evidenced by the list above, not only are the types of equipment covered by contractor’s equipment insurance variable, so is the value. The value of equipment covered ranges from thousands to hundreds of thousands of dollars.


How Contractor Equipment Insurance Works:

Coverage for loss or damages to tools and equipment may be provided on a scheduled or unscheduled basis. As a general rule, equipment with a value greater than $1,000 should be included on the schedule. Tools and equipment with a value less than $1,000 may be grouped together under a limit for unscheduled tools and equipment.

Losses are most often paid on an “actual cash value” basis. For tools and equipment, “actual cash value” can be defined as the amount that a replacement tool or piece of equipment, with similar wear and tear, can be found for in the marketplace. This should be taken into account when setting the insured values under your policy.

Who needs Contractors’ Equipment coverage?

Although contractors are the obvious candidate in need of Contractors Equipment Insurance, it is not exclusive to them. States, counties and municipalities that use mobile equipment for road maintenance and/or snow removal have a need to protect their machinery and equipment. Other businesses that would benefit from contractors equipment insurance include:

  • Builders
  • Landscapers
  • Plumbers
  • Electricians
  • Masons
  • Roofers
  • Carpenters
  • Painters
  • Steel erectors
  • Excavators
  • Agricultural operations


Like other forms of insurance, contractors' equipment policies vary greatly and may have more or less of the components and coverages described above. For example, contractors' equipment coverage can be expanded to include rented and leased property in your care, custody and control. There is also often optional coverage for automatic protection of newly acquired tools and equipment. It is important to analyze your specific needs in detail to ensure properly customized contractors equipment floater insurance policy.

Contractors Equiptment Rental Insurance

Who should have Equipment Rental Insurance coverage?  As a contractor, the tools of your trade are your business. Your customers don’t come to your location to use your services, you go to them. And every piece of equipment you need, from the largest crane to the smallest compressor, goes with you. Protecting that equipment from loss while at the jobsite or traveling to and from is as critical to the success of your business as knowing how to read a blueprint. Because when a piece of equipment you need is lost or damaged the job stops, but the clock doesn’t.

Whether you lease, loan or borrow equipment, we can provide coverage through one of several companies that we represent to protect the equipment in your care and make certain that it is covered for the limits and coverage according to your leasing contract.