Construction companies that rely on equipment such as cranes, bulldozers, and front loaders face significant risks. Contractors should obtain heavy construction insurance to cover their financial assets in the event equipment breaks down or needs replacing.

Ideal coverage allows a contractor to replace damaged or stolen equipment. Most insurance policies for heavy equipment typically cover both operating risks and third-party liability.

Operating risk

Operating risk refers to damage to equipment while it is in operation. Standard coverages include things such as:

  • weather damage
  • fire damage
  • spontaneous combustion
  • theft

Third-Party liability

This kind of insurance protects a builder against liability claims by someone such as another contractor, a developer, or a project owner.

Equipment Breakdown Insurance

This type of policy covers malfunctions and breakdowns caused by natural disasters. Types of equipment typically covered include electrical, mechanical, computer, and communications. It also covers things such as air conditioners and boilers.

Additional Coverage Types

  • Business Interruption: This protects your company against loss of income caused by malfunctioning items.
  • Rental Reimbursement: This covers the expense of renting machinery until you repair or replace your equipment.

Contractors require specialized insurance to meet the unique needs of their industry. For the best coverage, obtain heavy construction insurance from an insurer with the experience to uncover potential exposures in your business.