ClickCease Skip to main content

Common Insurance Mistakes Contractors Make: Overlooking Contractors Equipment & Tool Coverage and Installation Floaters

As a contractor, your work involves numerous risks and potential liabilities. That’s why having comprehensive insurance coverage is crucial to protect your business from unexpected events. While most contractors understand the importance of general liability insurance, they often overlook specific policies like Contractors Equipment & Tool Coverage and Installation Floaters. In this blog post, we will highlight these common insurance mistakes made by contractors and explain why these additional coverages are essential for safeguarding your business.

Contractors Equipment & Tool Coverage

Contractors rely heavily on specialized tools, machinery, and equipment to carry out their work effectively. Unfortunately, these valuable assets can be susceptible to theft, damage, or even accidents on the job site. Many contractors assume that their general liability insurance will cover these incidents, but this is often not the case. General liability insurance primarily focuses on third-party bodily injury and property damage claims.

By neglecting to purchase Contractors Equipment & Tool Coverage, contractors expose themselves to significant financial risks. This specialized insurance policy provides coverage for theft, loss, and damage to your tools and equipment, whether they are stored at your business premises, job sites, or even in transit. It ensures that you can replace or repair essential equipment promptly, minimizing downtime and avoiding significant out-of-pocket expenses.

Additionally, Contractors Equipment & Tool Coverage can offer protection against breakdowns or mechanical failures, which can occur unexpectedly and result in costly repairs. This policy is designed to cover your specialized machinery, hand tools, power tools, and other equipment essential to your daily operations.

Installation Floaters

Another insurance coverage often overlooked by contractors is Installation Floaters. If you specialize in installation or construction projects, this policy is especially relevant to your business. Installation Floaters provide coverage for the materials, supplies, and equipment you use during the installation process.

During a project, these items are at risk of damage, theft, or loss from various causes such as fire, natural disasters, vandalism, or accidents. Without Installation Floaters coverage, you may find yourself responsible for replacing these materials and equipment, resulting in significant financial strain.

This policy not only covers the items while they are in transit or stored on-site but also during the installation process itself. It offers financial protection against unforeseen events that could damage or destroy the materials you have invested in for the project.

Avoiding Common Insurance Mistakes

To ensure comprehensive protection for your contracting business, it is essential to avoid these common insurance mistakes. Here are a few tips to help you make informed decisions when purchasing insurance coverage:

  1. Consult with an Insurance Professional: Work closely with an experienced insurance agent or broker who understands the specific risks and needs of contractors. They can guide you in selecting the appropriate coverage for your business, including Contractors Equipment & Tool Coverage and Installation Floaters.

  2. Assess Your Risks: Conduct a thorough assessment of the risks associated with your operations. Consider the value of your equipment and tools, the nature of your projects, and the potential liabilities you may face. This evaluation will help you determine the types and amounts of coverage required.

  3. Review and Update Coverage Regularly: As your business evolves and grows, so do your insurance needs. Regularly review your insurance coverage to ensure it adequately reflects your current operations and assets. Update your policies as necessary to avoid any coverage gaps.

Conclusion

As a contractor, protecting your business and assets is of utmost importance. Avoid the common insurance mistakes of overlooking Contractors Equipment & Tool Coverage and Installation Floaters. These specialized policies provide crucial coverage for your tools, equipment, materials, and installation projects. By investing in comprehensive insurance coverage tailored to your specific needs, you can minimize financial risks, ensure business continuity, and focus on what you do best – delivering quality work to your clients. To ontain a quote on your Tools & Equipment or an Installation Floater call us at 877-428-8778 or go to our website at Insuranceinc.com .

For all your construction insurance and surety needs think Insurance Incorporated!