Tag Archives: heavy equipment insurance

Heavy Equipment Insurance

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When our lives are full of uncertainties and we have a lot of responsibilities to take care of, it is advisable that you take adequate insurance coverage so that the responsibilities that you have are well managed in your absence. Insurance in the need of the day. We will probably not find a single person without a life or a general insurance which includes vehicle insurance, home insurance or medical insurance. You never know when you will need one and therefore it is instrumental that you that you one in place. Nowadays we also have insurance that protects you against risks that is attached to your company or your business. It has become almost mandatory for companies to insure themselves against such risks. Talking about the construction industry, one of the most important components that this industry has and is always prone to risk is heavy equipment.

Heavy equipment are required to work under intense conditions and at times they work for hours without taking adequate breaks. This form of machine is quite tough but it also has its saturation point and if someone tries to break its saturation point, the machine will react. This means that the construction equipment will break down. Other than this, there are other risks that are attached to heavy equipment which are beyond human control. Your machine can get damaged due to some external calamity, fire or explosion. There are risks of it getting stolen as it has a huge demand in the market where stolen goods are bought and sold. You definitely need an insurance company that will cover your equipment with all the possible risks that you can think of.

There are many insurance companies available in the US that deals with protecting heavy equipment. They also deal with other insurance products and therefore you can check with the insurance company from whom you have covered your life or your business if they can provide insurance for heavy equipment. Some of the insurance companies that provide insurance to heavy equipment are Liberty Mutual, Occidental Fire & Casualty, and American Southern Insurance etc. You can get in touch with your financial advisor who will help you to select the best plan. You can also check the details with the insurance agent of the respective company to know the annual premium and the maximum coverage the company can offer on the machine.

It is understood that the heavy equipment are vulnerable to risks like theft and it is also not possible for every construction company to protect it from getting stolen. So the next alternative is to insure them. However, one also needs to check the claim settlement process of the insurance company. Some insurance companies become a big pain when it comes to claim settlement. It is therefore quite imperative that you check the claim settlement history of the insurance company before you go for it. You can find that out by visiting their website where you will see the number of claims they have settled in a year.

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Insure your heavy equipment before it gets too late

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Things have become quite expensive and losing something important and of high cost can put you in a big problem. This is why we are often advised by our financial advisors to insure our things before it gets too late. When you insure your important belongings the insurance company will pay you the coverage amount and you can use that money to buy a new one. We have the fear in our mind that our stuffs might get stolen or if it meets with an accident you will no longer be able to use it. This is perhaps the primary reason why you insure your stuffs.

For the same reason you also insure your home, your vehicle and there are some people who also insure their body parts because they consider it as the tool to earn money. Similarly in the construction business the owner of the business must insure his belongings too and the most important part of his belongings is the heavy equipment. Heavy equipment is expensive and also goes through arduous as well as perilous task which increases the incidents of minor or major accidents happening on the site. Being such an expensive item, if it suffers a major breakdown or needs to be replaced or gets stolen, the construction company will find it hard to get a new one without getting money from the insurance company. Apparently, this will also have a drastic impact on the progress of his project. This is why it is so important to get your heavy equipment insured with a good insurance company.

Ideally when you buy heavy equipment from a dealer or directly from the company, you are advised to insure the machine with one of the insurance company with whom they have their tie-ups. You have the option to either go with the insurance company that they have advised you or go for an independent company. So if you tell them of your choice of going with an independent insurance company it becomes your responsibility to ensure that you insure the machine with the insurance company of your choice.

Some insurance companies charge high premiums:-

Different insurance companies charge different amount of premiums. Some may be high and some may fit your budget. But the ones that charge high from you may also offer you few other services that a company with lower premium may not offer. So before you take an insurance cover for your heavy equipment, it is imperative that you read their policy related documents and understand the intricacies well. This will allow you to take the best call for your machine. There are some companies who charges nominal premiums but offer excellent coverage. So be wise and do good research before you pick up from the lot.

Go for companies that offer coverage on replacement cost:-

When you insure your heavy equipment on replacement cost basis, the insurance company will provide you the money without discounting the depreciation. They will give the amount on the basis of the coverage you have taken and not on actual cost basis. It makes more sense to go with a policy that has replacement cost and not actual cost.