How can I insure my small construction business against equipment malfunction claims?

Let's dive into how construction insurance and a tools and equipment policy can protect your business from equipment malfunction claims.

Aditya Raghunath - Writer for NEXT Insurance
By Aditya Raghunath
Kelly Hendrickse - editor for NEXT Insurance
Edited by Kelly Hendrickse
Matt Crawford for NEXT Insurance
Fact-check by Matt Crawford

Published June 20, 2023.

Construction insurance — especially with a tools and equipment policy added — can help with equipment malfunction claims. Broken equipment can lead to costly project delays, damaged business reputation and even potential lawsuits from unsatisfied clients.

Construction insurance can offer cover for third-party injuries and negligence claims. But with the tools and equipment policy add-on, your tools and equipment can be protected in case of unforeseen incidents. But how?

Tools & Equipment insurance

While construction insurance can include a business owner's policy (which usually includes a commercial property policy), this can have limitations on the extent of equipment coverage.

Commercial property typically only covers tools and equipment you own from inside or within 100 feet of your business's premises. However, tools and equipment insurance can help with malfunctions or damages related to the following:

  • Equipment owned by you
  • Borrowed equipment
  • Breakages shortly after a warranty expires

For example, if you are on the go with your equipment and it packs in while at a new job site, tools and equipment insurance can help with repairs or replacements to minimize work disruptions.

» Find out more about contractor tools and equipment insurance and how it works

Protect your small construction business with NEXT

From unexpected equipment malfunctions to on-site accidents, a small construction business can be exposed to numerous financial vulnerabilities without proper insurance coverage. But you can help prevent business income interruption and be proactive.

With NEXT, you can get fast, affordable business insurance that can be tailored to meet your needs. To view your options, simply apply online and get an instant quote in less than 10 minutes.

You can even get your certificate of insurance with NEXT.

NEXT: Tailored Small Business Insurance

4.7/5(5,056 reviews)