If you need to insure pieces of technology, appliances, and apparatuses on your contracting site, you can expect to pay a few hundred dollars per year. The average price of insuring your tools is typically between $400 and $500 per year, with the higher-end policies reaching upwards of around $2,500 to $3,000 per year.
The Average Cost Of Equipment Insurance – Find Out How Much You Might Need To Spend!
If you are ordering equipment insurance for your business, then you need to budget and set aside some money for this cost. Even though equipment insurance is the best way to avoid hefty spending in the long term, it can be an investment in the short term, as you will have to spend money on the initial insurance. However, spending money upfront can help save you hundreds of thousands in the long run that can arise from broken equipment, insurance liabilities, and personal accident claims! Let’s see what equipment insurance is, the benefit of getting equipment insurance, and how much you can expect to spend on your next project. See more on how to buy equipment insurance.
What is Equipment Insurance?
The first question that many people have is what is equipment insurance and why do I need it? Equipment insurance is a type of insurance policy typically designed to cover any damaged equipment, missing equipment, or broken equipment that has occurred during a job or while on set. If you find that you have broken your piece of equipment while using it for a specific job, you can use your equipment insurance to avoid hefty repair costs upfront.
The usual contractors’ insurance policy usually covers all of the physical equipment – such as many pieces of technology, apparatuses, appliances, or machines – along with covering small hand-held tools, individual equipment used by employees, and borrowed equipment used by other companies. This means that any equipment your workers are on set to help complete the job can be cured with the scope of your equipment insurance policy.
If damage to a piece of equipment has been declared a total loss – whether by damage to the equipment or theft – then purchasing equipment insurance coverage for your business can help you prevent having to spend hundreds of thousands, in the long run, to help fix any damage after an accident on site.
Furthermore, purchasing equipment insurance for your contracting business can help you cover any loss that can occur due to intentional damage or theft of equipment. If a disgruntled employee purposely breaks a piece of equipment or deals that equipment after hours, this can be covered by purchasing contractors’ equipment coverage. By purchasing equipment coverage, you can expedite a project and ensure that you do not fall behind and veer off schedule due to broken pieces.
What does Equipment Insurance Cover?
When debating whether or not you should get equipment insurance, you might be wondering – what does equipment insurance cover? Usually, the equipment insurance policy covers the tools, equipment, and the workers who are using the tools. Keep in mind that the scheduled equipment that is younger than five years old is still covered, along with any damage to the machine that can cause it to no longer work properly. If you have purchased this equipment after you have purchased the equipment insurance policy, then you will still be covered for the period of the item for which you signed up!
Furthermore, employee tools, clothing, accessories, and appliances are also covered under the equipment insurance policy. You can choose to cover equipment insurance for a range of prices typically between $400 per time up to around $3,000 per item depending on the cost of the piece, to begin with.
Does Equipment Insurance Cover Rented Equipment?
If you need to purchase insurance to cover your equipment, you might be wondering if it covers rented or borrowed equipment. Fortunately for you, equipment insurance typically covers equipment rented from another store or borrowed from another business. You can cover equipment either borrowed from personal connections – such as friends – or from other entities – like corporations. Typically, you can purchase equipment insurance up to around $50,000 of coverage for damages to another person’s equipment that is being used during your project.
Does Equipment Insurance Cover Cleanup After Equipment Failure?
If you find that your equipment has been damaged during the process or fails while using it on your site, you might be wondering – can your insurance cover the cleanup of the broken parts or of pollutants that occur after damaged equipment? If you find that there is a mess after broken equipment, don’t worry – equipment insurance typically involves the cleanup after broken pieces of equipment. For example, if fuel has been leaking from your broken equipment or hydraulic fluid is leaking all over your site, your equipment insurance will cover the cleanup costs of this toxic chemical.
Does Equipment Insurance Protect Against Theft?
If you are worried about people stealing your equipment, you should consider buying equipment insurance to protect yourself against theft. Equipment insurance protects against theft and hopefully returns the stolen equipment to the rightful owner. If you do that something has been stolen while on-site at your business, you can usually use your equipment insurance to try and track down the missing part to obtain a deductible and get reimbursed in the process. Usually, the equipment insurance will range upwards of around $5,000 per piece of equipment that is missing or damaged.
What Other Factors Should I Look Into With Equipment Insurance?
If you’re considering purchasing equipment insurance, try to find a company that also offers claims management and risk consultation. Claims agents can help you figure out how to file claims, how to deal with claims, and how to choose a company with the best customer satisfaction levels. Furehrmeoe, find a business that offers risk consultation to provide you with an idea of who to increase the safety of your business.
Finding a business that can provide you with equipment insurance is key to safeguarding your equipment and ensuring you in every way possible. By safeguarding your business, your equipment, your employees, and your project, you can save money, boost productivity and avoid any mishaps on the job. Purchasing equipment insurance is a great investment and preventive method to keep yourself in the best shape possible for your future business growth!