Archive for Machinery & Tools
Contractors Equipment Insurance
This inland marine coverage insures contractors’ equipment on a scheduled or blanket basis. For many contractors, their major assets are equipment, such as cranes, power shovels, tractors, and bulldozers. Large items can be specifically scheduled, while a blanket limit may be used for smaller items. Tool coverage, including employee tools, can also be provided. Coverage is often based on all risk-type perils or special causes of loss and is tailored to suit the individual insured’s needs. A deductible sufficient to eliminate smaller, petty pilferage losses is preferred. Special limitations on crane-use are common.
Equipment and Tool Rental Services
Equipment and tool rental risks are difficult to place, especially if coverage is needed for equipment that is rented out. Coverage for tools and equipment rented to persons who may not know how to operate them properly is also needed because the items rented may be damaged or broken. The liability exposure is also significant, especially if the rental service rents out chainsaws and other power tools that can cause serious injury.
Equipment Breakdown Coverage aka Boiler and Machinery Coverage
Breakdown of a wide range of energy-related equipment, such as computers, machinery that uses computer technology, and other equipment are covered, in addition to the traditional boiler and machinery objects such as boilers, air conditioning systems, ovens, stoves, furnaces, elevators, hoists, and cranes. Medical diagnostic equipment, such as MRIs, advanced heart monitors, and other scientific equipment in hospitals, medical laboratories, and universities can also be covered. Breakdown is the only peril or cause of loss covered. Coverage is available for both direct and indirect loss such as loss of income or extra expense.
Equipment Leasing: Lessor Protection
When equipment is leased to others, those lessees are required to insure it. The equipment owner can purchase contingent coverage that pays for its interest in the equipment if the lessee does not meet its contractual obligation to insure the equipment. This coverage can be broadened to include the lessee’s interest.
Tight market conditions occasionally create a need for a special market for foundries. The intense heat used in the casting process creates hazards that many standard insurers find unacceptable. In addition, many underwriters see relatively few risks in this class and conclude that they are more hazardous than they actually are. Other than the fire hazard, workers compensation has a high frequency of losses due to exposure to silicosis and other occupational diseases. There is a products liability exposure due to the products cast in a foundry being used in automobiles, locomotives, aircraft, or heavy machinery and equipment.