Business Personal Property Insurance

Any good contractor is only as good as the quality of his or her tools. As a contractor, you know the outsized impact of equipment and tools on what you are able to accomplish as a business. Although most contractors are required by law to have some type of general liability insurance package, contractor tools insurance is considered extraneous coverage by many states and it is left to the contractor whether or not to purchase this type of coverage. However, protecting tools and equipment should be extremely high on your priorities list, which is why business personal property insurance is a great policy to have in your insurance tool belt. 

What type of equipment is covered under a typical bpp insurance package? Any equipment that you use over the course of your contracting work could theoretically be covered. That could include something as small as a hammer or drill, or something as large as a backhoe or cement mixer. Different jobs require different tools, but other items are also covered, such as personal protection equipment like gloves or hard hats and even small vehicles like certain types of tractors. 

So what has to happen to this equipment in order for contractors equipment insurance to flex its muscles and take over? Equipment insurance coverage will usually kick in when tools have been damaged or destroyed in a work related incident, like an accident on a job site or being mishandled by an employee. It also covers incidents that occur with rented or leased equipment, which for many smaller contractors that take on occasional large jobs is a key part of their business. If you have equipment in the shop and need to rent something to continue the job, contractor tools and equipment insurance will cover the cost of that equipment and its use in business operations. Finally, these types of policies can also substitute for or supplement warranty coverage with new equipment: if a new chainsaw is giving you fits and causes an accident during a job, the equipment can be repaired or even replaced under this policy. 

Interested in learning more about contractor tools insurance, including what a performance bond is or what type of incidents can be covered under this type of policy? Visit our website or call us directly to speak with an agent. We’ll take the time to understand your unique situation and recommend the perfect policy for your business.