Machinery and Equipment Coverage Explained

Machinery and Equipment

Anyone that has ever relied on a tool or a piece of equipment for their job could imagine what could happen if it ever failed or was stolen. Having the right equipment for the job is essential and if that equipment is no longer available, you may find yourself in a position where you simply cannot finish the job. We don’t want to see that ever happen to your business, so in our insurance packages we include coverage for Machinery and Equipment and the rental use of comparative equipment should yours suffer an insurable loss.

When it comes to your business, you already know that the more details you know the better. For that reason we have put together this article to make sure you know basics about Machinery and Equipment Coverage, and how it will benefit your business operations.

What is Machinery and Equipment Coverage?

The machinery and equipment coverage is for your machines and equipment that have a value of more than $2,500 (Ex. Bobcats or backhoes) including Rented or Borrowed Equipment.

Built into all insurance packages is the loss of use coverage for your equipment. This means that if you have your backhoe stolen, there is coverage available for you to rent a backhoe until your replacement arrives.

Is There Replacement Cost Available?

Yes, replacement cost replaces ‘actual cash value’ on all of our packages provided you are the original purchaser of the equipment exclusive of the selling dealer and the loss or damage occurs within sixty months (5 years) of the date on which the equipment was first delivered to you.

What Are The Limits on Coverage?

Every insurance policy will have limits (maximums) to their coverages. At we have packages available that will fit most companies needs. To ensure complete transparency, we have put our limits for each package below. These numbers are up to date as of the time of the writing of this article (July, 2018).

Machinery and Equipment Coverage

  • Basic Package
    • $10,000
  • Classic Package
    • $25,000
  • Plus Package
    • $50,000

You can read more about our packages on our website.

Loss of Use Limits (rental)

  • Basic Package
    • Loss of Use Limit: $10,000/year
  • Classic Package
    • Loss of Use Limit: $10,000/year
  • Plus Package
    • Loss of Use Limit: $25,000/year

You can read more about our packages on our website.

Plus Package Perks on Machinery and Equipment Coverage

Our most prestigious coverage package has some perks over the Basic and Classic packages. The machinery and equipment coverage is also enhanced for the Plus insurance package with coverages that are not available for the other two packages.

The Plus package also includes coverage for:

  • “Machinery and Equipment — Coverage for Sinking into Ice and Muskeg”
    • Limit of $25,000
  • “Machinery and Equipment — Fire Department Service Charge”
    • Limit of $10,000

You can read more about our packages on our website.

Real Life Example

During excavation work for the construction of a parking lot, an excavation contractor locked up a brand new backhoe and left it on the work site at the end of the day. The next morning, the backhoe, valued at $58,000 was gone.

Coverage: Machinery and Equipment, including Replacement Cost and Loss of Use. Replacement cost is built into all packages for the first 60 months (5 years) provided you are the original purchaser of the equipment exclusive of the selling dealer.

Final Loss Settlement Amount: $58,000 to replace the backhoe; $10,000
to rent backhoe until replacement arrived.

Wrap Up

If you have read this far down the article, you already know how important this coverage could be to your business. If you are not currently insured with us, don’t hesitate to get a Free Quote to see if we can save you money and provide you with better coverage.

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