Construction projects include a considerable degree of risk for all parties involved. For builders and contractors responsible for executing the contract, they are heavily invested in the project through the valuable tools and equipment their business owns or rents. Agents should discuss adding insurance coverage for these expensive mobile investments. Construction equipment and tools stored at job sites can be an attractive target for theft or vandalism.
Of course, contractors should also be advised to take precautionary measures to protect the construction site and equipment. Depending on the stage of construction, job sites can have a high volume of idle equipment. Adding lighting and fencing to work sites can help combat criminal activity, and taking steps to maintain tighter control over machinery and tools is another sound practice. Even when the proper measures are taken, losses can still happen.
Equipment theft and vandalism can increase business costs and set back the completion of a project. Theft ranks as the number one reason for equipment loss and, on average, the cost of a stolen equipment item costs $17,400, according to the National Insurance Crime Bureau. The most common items stolen include backhoe loaders, skid steers, and wheel towers. Other costs associated with theft can include short-term rentals, added labor costs, and any other penalties that may arise due to the project being delayed.
Adding contractors equipment coverage can help protect a wide range of commercial operations using mobile machinery and equipment, including contractors, retailers, manufacturers, wholesalers, and municipalities. Typically, contractors equipment coverage protects mobile heavy equipment such as backhoes, bulldozers, graders, forklifts, pavers, cranes, compressors, and power shovels as well as covering smaller, more portable items.
By helping clients understand the potential for costly losses and construction delays, agents can provide added value through contractors equipment coverage. To learn more about the best practices for theft and vandalism practices, read our Contractors Equipment: Theft and Vandalism Report.
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