Heavy Equipment Insurance 101

Vehicles and equipment — whether small or large — carry certain risks. Unfortunately, no matter how great care we take of our belongings, there’s still a chance that they could break. Accidents occur, parts can fail, human error is a factor, and there are dozens of other variables that can go wrong. No matter how often we check our tractor’s oil, inflate our construction equipment’s tires, or polish the sheet metal, cracks, leaks and more can always occur.

To help remedy these unsightly occurrences, and to fulfill state laws, equipment should always be insured. Different plans can be used here as well, which makes how or when your vehicles are insured a completely customized decision. Whether you choose a minimum level or full coverage, machinery can be kept safe from harm’s way … or at least in theory. Whenever a hail storm, hurricane or accident may occur, the insurance company will likely help take care of any damages that took place.

The Rundown

Every state is different, but generally a certain amount of insurance is required before legally running a vehicle. These insurance policies can cover varying dollar amounts, different instances and more. Because there are so many obstacles that can literally be overcome with large pieces of machinery, it is important to make sure they are covered for whatever situation may pop up. Check with your insurance agent to be sure. Different rates will be available as well, especially comparing business versus personal use.

When you rent construction equipment, however, the insurance laws change greatly. Some companies will provide their own, which you can also use (and is most likely included in the price). This will likely be shown in the renter’s contract, but it never hurts to check what the terms exactly entail. In contrast, though, some companies may require your homeowner’s or vehicle insurance to cover the use of heavy machinery.

Heavy Equipment Insurance

Pick Your Plan

Oftentimes companies even get a discount for insuring multiple vehicles with a single company. Heavy equipment dealer stores can take advantage of these policies, while offering rental or sales services to their customers. For customers, this is great news as it has the potential to cut rental fees before the machine even enters their possession. While it may not sound like it amounts to much, these savings have the potential to add up to hundreds of dollars per month, just by providing the coverage that is legally required.

Making the Decision

Check available resources before officially deciding on an insurance plan. However, no matter your decision, it’s safe to say that researching large equipment policies is far different than comparing those of everyday cars and vehicles.

To get the most out of your insurance experience, see what options are available versus which ones will best suit your machinery’s needs.

Michelle is a guest blogger who understands the importance of minimizing risk, and utilizing insurance to do so.

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