Paige Cerulli Last Updated On: July 18, 2024

Heavy Construction Equipment Insurance for Contractors

As a contractor, you’ve invested heavily into your construction equipment. Heavy construction equipment insurance can help you to protect the equipment that your business depends on.

Construction equipment insurance can help protect your business against anything that could happen while you’re using or transporting the equipment. It covers issues like fire, theft, vandalism, weather and more.

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What Equipment Does Heavy Machinery Insurance Cover?

Your heavy construction equipment insurance can cover everything from loaders to cranes to excavators to bulldozers and more. You can even insure equipment attachments. When you sign up for a policy, you will need to individually list each piece of equipment that you want to insure.

If your machinery is damaged, lost, or destroyed in a covered loss, your insurance policy will pay you the machine’s value, up to your policy’s limits. You can use that money to buy a new piece of equipment to replace your lost machinery.

Keep in mind that many heavy machinery insurance policies exclude job sites or work in which you’re working over water because of its increased risk. If you know you have an upcoming job involving water, you may need to buy a specialty policy for extra coverage.

What About Leased Heavy Machinery?

When you lease heavy machinery, your business typically assumes responsibility for any damage or loss that might occur while the machinery is in your possession. Some leasing companies require you to purchase insurance for heavy equipment to protect the machinery in case of a loss.

Buying insurance for leased machinery also gives you the peace of mind that you won’t be financially responsible for damage that occurs to equipment that you don’t yet fully own.

Is Contractors Equipment Insurance Tax-Deductible?

In many cases, yes, your contractor equipment insurance is a business expense, and you can deduct this expense from your taxes. Be sure to direct any questions about your tax deductions to your business accountant.

How Much Does Business Equipment Insurance Cost?

The cost of your business equipment insurance will depend on the type of machinery you’re insuring, the number of machines you have, and their value. Your insurance company may ask about any steps you’ve taken to protect the equipment, such as storing it in a building or a locked area, and these factors will all affect your premiums. Your insurance company may also ask about your experience using the equipment that you have to verify that you’re following safety protocols.

When you buy a policy, you may be able to add on coverage for leased or rented insurance. This coverage gives you extra protection and you might be required to buy the coverage depending on your equipment lease or rental contract.

Since so many factors can affect your heavy construction equipment insurance costs, getting a quote will give you the most accurate idea of what you’ll need to pay for your policy. You can get free, personalized contractors equipment coverage quotes today to start exploring your options.


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