Insurance Recommendations for Heavy Industrial Equipment

Heavy equipment insurance, also known as commercial contractor’s equipment insurance, is a wide-ranging coverage specifically made to cover any and all equipment that becomes damaged or possibly goes missing during a project. The idea of providing commercial property insurance might be simple to think about, but there’s much more that goes into it.

From borrowed tools to site clean up, employee equipment to loss, there are a number of products available to companies looking to have the proper coverage. That can cause some confusion and some frustration. Let’s help with that by going over some heavy industrial equipment recommendations.

What is Heavy Equipment Insurance?

Heavy equipment insurance is usually covered under an Inland Marine policy that covers things like loaders, cranes, and other construction equipment needed to be used during jobs. If damaged or missing and needing replacement, this can be a financial mess for contractors. Without the right insurance any damage to machinery can mess finances.

Equipment Breakdown

Things happen at random and disasters are not predictable most times. Even when a company is well-prepared there is some level of surprise. Equipment breakdown insurance covers exposures that are typically excluded in other policies. This kind of coverage protects companies from sudden damages and setbacks. Have a malfunction or explosion on premises? This is the coverage you need.

But this kind of insurance really does cover it all. Everything from motors to pumps to electrical equipment that go haywire all get covered under equipment breakdown.

Additional Costs

Contractors should keep in mind that heavy equipment insurance really is a broad term. This kind of insurance only takes care of the costs associated with repairing and replacing impaired machines. Here are some other things to consider when looking for coverage:

  • Spoilage: This is designed with food processing in mind and covers against loss or expenses due to spoilage from an accident.
  • Business Interruption: Broken equipment can cause loss of income and increased expenses. Operations may be suspended and this kind of interruption can protect against losses.
  • Rental Reimbursement: Renting machinery replacements until the damaged equipment may need to be the option you choose. This will help cover the costs.
  • Sub-Limited Coverage: There are coverages designed for specific sub-limits, like hazardous substances, water damage, data restoration, and more.

Rental Equipment

Some businesses use rental equipment to operate heavy machinery and can be held liable for damage to the equipment. Many machinery loaners don’t provide coverage under their own policies, so looking into your own policy here will provide peace of mind.

Make sure to go over inventory and see just what could be affected and what needs to be covered. While not everything can be predictable it does help to be cautious and informed.

About Newman Crane & Associates Insurance

Deciding what coverage you need and what limits and deductibles make the most sense can be tricky. Since 1965, Newman Crane & Associates Insurance has been helping Central Floridians make sense of their options and make the smartest choices for their circumstances. Whether you need Warehouse Insurance or any other type of business or personal coverage, we encourage you to contact our friendly, experienced, and capable team today. Call us at
(407) 859-3691 for a consultation.