If you’re a contractor, you already know how much money you have invested in your gear. From backhoes and equipment arms to power tools and their carrying cases, the value of professional-grade contractor equipment can add up quickly — and cost you a mint if it's ever stolen, damaged or destroyed.

Your commercial property insurance policy helps protects your gear while it’s at your shop, but what if it’s being stored temporarily at a worksite or transported from job to job?

In both cases, you need contractors equipment insurance — also known as a contractors equipment floater — to help make sure your gear is covered.

What is a contractors equipment floater?

A form of inland marine insurance, a contractors equipment floater is designed to cover machinery, tools and other gear used on construction projects and worksites. The term “floater” refers to the fact that coverage follows your equipment from location to location, protecting it while it’s out in the field or on the move.

That differs from standard commercial property insurance, which only protects a contractor's equipment while it’s at the location listed on the policy and business auto insurance, which typically doesn’t cover cargo or equipment during transport. That makes contractors equipment insurance your primary pathway for protecting mobile or movable gear.

A contractors equipment floater can be purchased as a standalone policy or as an extension of your existing business insurance coverage. It can also be purchased by non-contracting entities, such as municipal governments. 

What does contractors equipment insurance cover?

A contractors equipment floater covers scheduled equipment (specific pieces valued over a set amount, like $500), as well as unscheduled equipment (smaller pieces under that limit), including containers, spares and accessories. 

UFG also offers supplemental coverages that can include leased or loaned, or rental equipment, giving you peace of mind when it comes to the contractor's equipment needed to complete your project. 

How else can I protect my equipment?

UFG Risk Control can work with your team to help reduce contractors equipment losses through inventory, storage and security best practices. Our risk control experts are always available to advise on your specific circumstances and can offer manageable plans of action that reduce thefts, vandalism and safety issues.

When you’re ready to explore contractors equipment insurance for your business, UFG Insurance is ready to help. Speak with an agent near you today to find the tailored solution you need.