Contractors Equipment Insurance insures owned or leased construction equipment from theft, damage, or vandalism on- and off-site. Important for builders, contractors, and infrastructure companies
Contractors Equipment Insurance
What Is Contractors Equipment Insurance?
Contractors Equipment Insurance protects owned or leased construction equipment (e.g., bulldozers, cranes, backhoes, generators) from risks like theft, vandalism, fire, collision, and natural disasters — even when stored off-site or in transit.
Who Needs Contractors Equipment Insurance?
Heavy equipment is expensive and frequently moves between job sites. A single loss can cost six figures and cripple operations if not insured.
Common industries that often require Contractors Equipment Insurance include:
- General Contractors and Builders
- Excavation, Grading, and Demo Firms
- Roadwork and Utility Contractors
- Crane, Concrete, and Foundation Contractors
What Does Contractors Equipment Insurance Cover?
Contractors Equipment Insurance typically covers:
- Owned and rented equipment
- Mobile tools and machinery
- Loss or damage from fire, theft, flood, collision
- Transit and off-site storage
What Doesn’t Contractors Equipment Insurance Cover?
While Contractors Equipment Insurance offers broad protection, it doesn’t cover:
- Wear and tear
- Mechanical breakdown
- Damage due to poor maintenance
- Tools under a certain dollar threshold (covered separately)
- Damage to leased equipment beyond contract limits
How Much Does Contractors Equipment Insurance Cost?
The cost of Contractors Equipment Insurance varies based on factors like job size, equipment value, onsite security, location, and claims history.
Key Cost Factors:
- Total equipment value
- Jobsite security and location risk
- Equipment storage and transport practices
- Deductible and coverage options
Typical Cost Range:
- Small Equipment Policies: start around $500/year
- Medium Equipment Policies: $1,000–$10,000+/year
- High-value fleets: may cost $50,000+/year
Risk Management Tips
To minimize potential claims:
- Create a check-in/check-out log for all mobile equipment and hand tools.
- Use GPS or RFID tagging for tracking valuable or mobile items.
- Lock, immobilize, or secure machinery when not in use, especially overnight.
- Perform preventive maintenance to reduce breakdowns and repair costs.
- Limit unauthorized access by using operator-specific keys or codes.
- Review rental agreements and coverage limits before leasing equipment.
Talk to An Expert
Our dedicated experts are ready to provide tailored insurance solutions to clients across a wide range of industries and specialized services.
Schedule a consultation to see how Alliance Risk can reduce your insurance risk.
– We look forward to partnering with you.