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Equipment theft disrupts project timelines, means shelling out unbudgeted dollars to pay for expensive replacements, and, yes, can even drive up your insurance premiums.
With high-priced machinery and tools spread across job sites, sometimes in unsecured areas, construction sites are frequent targets for theft. But the right insurance coverage can make a big difference, offering at least a measure of financial protection and peace of mind when the bad guys strike.
Here’s a quick look at how specialized construction equipment insurance policies and proactive security measures can help you safeguard your investments and reduce your risk.
Inland Marine Insurance: Protecting Your Equipment on the Move
Inland marine insurance is one of the best solutions for construction companies looking to protect their valuable assets.
Unlike traditional property insurance, inland marine coverage extends to equipment that’s frequently on the move, whether it’s being transported between sites or temporarily stored at a job location.
This policy type is designed for mobile equipment, so it fills the gaps left by standard property policies.
Specialized Coverage Options for Extra Protection
In addition to inland marine insurance, contractors’ equipment insurance offers protection for both owned and leased equipment, covering everything from heavy machinery to smaller tools.
If your company rents equipment, it’s also wise to consider rental reimbursement coverage, which can help cover the cost of renting replacement equipment while your claim is processed.
Tips for Reducing Theft Risk on Job Sites
While construction equipment insurance is essential, taking steps to prevent theft in the first place is equally important. Implementing security measures can not only reduce the risk of theft but can also help lower your premiums. Here are some effective strategies:
- Install Security Cameras: Security cameras are a powerful deterrent for potential thieves. Many insurers offer premium discounts for job sites equipped with surveillance systems.
- Use GPS Trackers on Equipment: GPS tracking can help recover stolen items faster and, in some cases, may qualify you for insurance savings. GPS tags allow you to monitor equipment movement and even set alerts for unauthorized use.
- Secure Your Perimeter: Fencing, locked gates, and secure entry points make it harder for thieves to access your job site and get away with expensive tools and machinery.
- Designate a Secure Storage Area: For tools and smaller equipment, a locked storage container can prevent items from being left out overnight or on weekends when the site is unsupervised.
- Conduct Inventory Checks: Regular inventory checks allow you to notice missing items sooner and help prevent losses from escalating. Documenting inventory can also support your insurance claim process if theft does occur.
Lowering Insurance Premiums Through Risk Management
Insurance companies often reward construction companies that take preventive steps to reduce their theft risk. By implementing security measures like those listed above, you can demonstrate to your insurer that you’re proactive about risk management, potentially earning discounts or lower premiums.
It’s a win-win approach — strengthening security on your sites and saving money on coverage costs.
The Mahoney Group, based in Mesa, Ariz., is one of the largest independent insurance and employee benefits brokerages in the U.S. For more information, visit our website or call 877-440-3304.
This article is not intended to be exhaustive, nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel or an insurance professional for appropriate advice.