Other than real estate, the most expensive assets that many contractors possess are the pieces of mobile equipment they rely on every day. While no definitive numbers are available, the National Insurance Crime Bureau (NICB) and National Equipment Register (NER) estimate the theft of heavy construction equipment costs between $300 million and $1 billion every year, not including the theft of tools or property damage that may occur during a theft.
Unfortunately, the high value and mobility of construction equipment presents an attractive target for theft. In fact, the statistics are staggering. According to the National Insurance Crime Bureau (NICB), 11,486 equipment thefts were reported in the U.S. in 2013 (the latest year for which these statistics are available).
Theft can occur anywhere, at any time, but when there’s a construction peak in your area, the odds are that theft at job sites will also increase. While there is no practical way to completely eliminate the possibility of mobile equipment theft, contractors cantake steps to secure job sites and to secure equipment left at job sites. Some contractors choose to install GPS tracking systems on equipment. Another way contractors can help secure their equipment is by registering it with the National Equipment Registry (NER), the only national equipment registry in place today. With NER registration, serial numbers are registered, and contractors can apply warning decals to discourage potential thieves from stealing the equipment.
While these steps may not be enough to stop someone who is determined to make off with a contractor’s valuable equipment, it can help law enforcement identify and recover stolen construction equipment. Ultimately, this can mean that stolen heavy equipment is returned to its owner faster, so contractors can get back to business with as little interruption as possible.
Contractors rely on their heavy equipment to make a living, so taking action to secure that equipment and to deter theft just makes sense. As an insurance agent, you can help your clients by making them aware of the risks and of the opportunities to protect their equipment, both through programs like the NER registry and through insurance programs.
To learn more, download our free report, Contractors Equipment: Theft and Vandalism Protection, today. Then, contact US Assure’s dedicated team of specialists at (800) 800-3907 to learn more about our contractors equipment insurance coverage. This is intended as a general description of certain types of insurance and services available to qualified customers. Your policy is the contract that specifically and fully describes your coverage. The description of the policy provisions gives a broad overview of coverages and does not revise or amend the policy.