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Does Construction Company Insurance Protect Your Tools?

Construction company insurance is a term that applies to the various types of insurance that protect contractors in the course of your work. Not all policies offer coverage for all risks. In fact, different policies focus on specific risks. It is advisable for contractors to bundle a number of policies into a construction company insurance program.

How to protect your tools

Let’s look at which policies protect your construction tools. As a point of reference, we’ll also look at another policy that does not protect your tools. This way you’ll know what to ask for when you speak with your insurance consultants.

The 3 policies we’ll look at are:

  • Builder’s Risk Insurance
  • Inland Marine Insurance
  • Contractor Liability Insurance

Builder’s Risk Insurance:

Generally, Builder’s Risk Insurance policies offer coverage for damages caused by fire, weather, and vandalism. Yours can also provide theft protection for your tools and equipment while they’re on the job site, in storage off-site, or in transit.

So you’re probably asking yourself, why don’t I have this policy already? Builder’s Risk is Course of Construction insurance because it is project-based. This means that you will invest in coverage for a specific project. When the project is complete, tthe coverage ends.  In other words, Builder’s Risk does not protect your tools for longer than the project duration.

To protect your tools on a day-to-day basis, you should invest in Inland Marine Insurance – we’ll look into this next. Whilst both Builder’s Risk and Inland Marine protect your tools, Builder’s Risk offers value that Inland Marine does not.

The real benefits of Builder’s Risk Insurance are property replacement and reimbursement of profits lost.

Inland Marine Insurance

Inland Marine goes wherever you go. Cover your tools for all your projects, not just one.  This includes theft from the building site or in transit. This is very important when you work on several sites.

Every Builder’s Risk Insurance policy is different because every project is different. Protection for tools, equipment and building materials varies from policy to policy. It should be double-checked.

Contractors Liability Insurance

Liability insurance gives coverage against third party claims. In other words, it pays out when somebody else sues you for damages. This does not protect your tools and equipment. As, if these get stolen or damaged the financial loss is not theirs.

Let’s take a look at some of the damages your liability insurance will cover:

  • Property damage: should you or your employees damage someone else’s property. For instance, the neighbor’s garden furniture or your client’s vehicle parked on the street.
  • Bodily injury: should someone other than yourself or your employees be injured on your work site or as a result of your work. For example: a visitor to the site is hit by falling building material.

Contractors Liability Insurance is very important for builders. In fact, it is mandated by law in most states. But, as said, it does not provide coverage for your tools and equipment.

Construction Company Insurance

Get professional advice about which policies should be included in your Construction Company Insurance program. We are happy to assist. Speak with the consultants at Contractors Liability on 866-225-1950

Avatar for John Brown
Written by: John Brown
John has more than 25 years of experience in the insurance industry. He grew from a star insurance producer to owning one of the largest agencies in the country; he's a reference regarding contractor's insurance, commercial insurance, and builders' risk insurance.