Why Winnipeg Contractors Need Tools and Equipment Insurance
Your tools and equipment either travel with you to a construction job site or they are stored. A big risk that you face as a Winnipeg contractor is the theft of your tools and equipment from a job site or your shop.
Tools and equipment insurance for Winnipeg contractors covers a wide range of items if they’re stolen, lost, vandalized, or damaged by fire, water, or a natural disaster.
Construction site theft of tools and equipment is a multimillion dollar business for thieves in Canada with Manitoba and the Greater Winnipeg Area being particularly hard hit.
Your Western Financial Group business insurance expert will make sure that you are covered with tools and equipment insurance as a Winnipeg contractor. Your commercial insurance package will also be customized to your needs at the right value for you.
What is tools and equipment insurance?
Any item valued below $1,500 a tool. An item worth more than $1,500 is considered to be equipment.
When you apply for tools and equipment insurance coverage as a Winnipeg contractor, add up the value of the tools and equipment that you or your small business own so that your insurance provider has that information.
You may also hear tools and equipment insurance called contractor equipment insurance.
Examples of tools
- Hand tools such as hammers, screwdrivers, pliers, hand saws, and utility knives
- Power tools such as electric drills, circular saws, belt sanders, and nail guns
- Measurement items such as tape measures, rulers
- Safety gear such as hard hats and safety glasses, fluorescent vests, and steel toe boots
Examples of equipment
- Tractors
- Bulldozers
- Backhoes
- Pavers
- Graders
- Excavators
- Cement mixers
What doesn’t tools and equipment insurance cover?
- Damage due to wear and tear
- Damage done on purpose
- Building materials for your project. To cover materials, you may need installation floater insurance.
- Electrical or mechanical malfunctions (equipment breakdown insurance typically covers damages due to mechanical breakdowns, electrical shorts, or power surges)
How does tools and equipment insurance protect you as a Winnipeg contractor?
- You’ve left your hand tools at a job site and they got stolen. Contractor equipment insurance can help cover the cost to replace the stolen tools.
- Your backhoe was vandalized at a job site. Tools and equipment insurance will help cover the costs of repairing your Winnipeg contractor business’s backhoe.
Tools and equipment insurance also extends coverage whether your tools and equipment are in storage, in transport, or left at a client’s location.
Who else needs tools and equipment insurance?
- Carpenter
- Plumber
- Roofer
- Landscaper
- Welder
- Deck and fence builder
- Drywaller
- Painter
- Among others
How much does tools and equipment insurance cost?
The cost will depend on the value of your tools and equipment, your location, number of employees, annual revenue, and any past claims.
What other kinds of insurance do Winnipeg contractors need:
- Commercial general liability insurance
- Commercial property insurance
- Course of construction insurance
- Business interruption insurance
- Pollution insurance
- Errors and omissions insurance
Commercial vehicle insurance is important: When you or your employees are on the road travelling to a job site in Winnipeg and anywhere in-between, commercial vehicle insurance may cover your vehicles in the case of an accident. Your personal vehicle insurance will not cover you in the case of an accident if the work is related to your Winnipeg construction business.
Here’s an insurance checklist for your Winnipeg contractor business:
- Do you have the best Winnipeg business insurance rate that suits your work?
- Do you have the right amount for your deductible and regularly review it to make sure it’s the right amount for you?
- Are you or your employees using personal vehicles for work?
What do I do if my Winnipeg contractor/construction business has an insurance claim?
- Contact your broker immediately after any business-related mishap. Waiting to file a claim can confuse insurers about the severity of the damages to your business.
- Know your policy so that when you contact your broker you are familiar with what will be covered or not.
- Document the damage. Take photos right away and write down what happened.
- Do not throw away damaged goods after taking photos. Keep the physical evidence so that your adjustor can see it.
- Do not invite lawsuits. Don’t say anything that could be used against you, especially if you aren’t sure what happened.
- Be honest about what your damaged property is worth. Damaged commercial property is generally valued according to its actual cash value or replacement value.
Western Financial Group has licensed BUSINESS INSURANCE EXPERTS to get your Winnipeg construction business the right business insurance package. Our experts are available now to help you navigate the commercial insurance journey to protect your Winnipeg business.
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