3 Tips for Contractors on Equipment Insurance

Posted on: 30 January 2018


Imagine waking up one morning only to find that all your tools of trade and equipment have been stolen or vandalised. How would many construction contractors remain in business if such a scenario were to play out? The answer to this question is probably a few contractors or none. Contractors often have thousands of dollars worth of tools and portable equipment such as backup generators, concrete mixers, backhoes, and bulldozers, which help such businesses to operate and stay afloat. Most importantly, a construction business cannot run without such tools and equipment. As such, a blanket insurance cover for all your gear is not only a noble idea but also a cost-effective option for your business. Here are some tips for trades insurance, offered by companies like Northwest Insurance.

Keep Meticulous Records of Tools and Equipment -- Business disasters such as vandalism, theft, and natural calamities can have an overwhelming cost implication for construction contractors. An insurance cover will provide the much-needed peace of mind in case of disasters. However, smart contractors keep a clean and up-to-date record of all tools and equipment. Add all new tools to your inventory and have them insured accordingly. Also, remove old equipment that is no longer in use from your policy for accuracy. Records can also help you to make a claim for reimbursement in case you paid for an insured item out of pocket. In this sense, make sure that you have all payment receipts in order. Furthermore, since any claims of business loss resulting from equipment theft or damage are based on historical income, keeping updated records is beneficial.

Auto Payment -- Due to the busy schedule of most construction contractors, some might forget to keep up with an insurance bill payment. For flexibility and convenience, you can automate payment on the due date. Insurance premiums for tools and equipment can be deducted automatically from either a savings account or a checking account. With such a system, you will always be prompted for the maturity of premiums. Besides, you do not incur extra costs, for example, postage fees for insurance premium checks. Therefore, check with your provider if they can set you up with an auto-payment system.  

Replacement of Hard-to-Find Items -- In the unfortunate event that your equipment gets stolen, then you might find it difficult to replace some of the items due to a host of reasons. For instance, if a tool is only made overseas, the logistics involved, coupled with the time required to lodge a claim can delay the operations of your firm. Therefore, if you need to replace a tool or equipment as soon as possible, inquire about a policy that can expedite the process.