What Does Equipment Insurance Typically Cover?

Equipment insurance covers losses to business’s movable tools and equipment. If an item is lost, stolen, or damaged, the policy typically helps insured to pay for repairs or replacement of the covered equipment.

For example, a crew member may accidentally drop a tool that then needs repair. Even if the equipment is rented, an equipment insurance policy may provide coverage for the damaged equipment.

Or an item might break during transit. Motors, pumps, and generators may fail in the middle of a project. Having equipment insurance coverage can typically be help cover some of the costs of repairs in situations like these.

Theft and vandalism may render a tool unusable or unavailable. In fact, theft leads to millions of dollars in losses across the construction industry. Equipment insurance will typically cover not only the cost of the repair or replacement of the equipment but also the lost business income if the damage to covered equipment causes an interruption to the business.

Equipment insurance may also cover other expenses resulting from the damage to covered equipment. For example, a business may have to replace spoiled inventory for food service during a loss of power. A piece of equipment may leak contaminants onto a job site and require cleanup. Equipment insurance can help the business get back on track.