My skid steer was parked at a remote site. I had the keys, but they hot-wired it (or used a universal key) and loaded it onto a flatbed. Gone. Value: $45,000. My “Tool Floater” capped out at $10,000. I was underinsured by $35k.
Key Takeaways
- Contractors Equipment Policy: Skid steers, excavators, and backhoes need a specific “Heavy Equipment” or “Contractors Equipment” policy. A standard “Tool Floater” is for hand tools and small machinery.
- Universal Keys: Heavy equipment security is a joke. Most Cats/Bobcats use the same key. Theft is incredibly common.
- NER Registration: Register your equipment with the National Equipment Register (NER). Insurers often give a waiver on the deductible (which can be
1k−1k−5k) if the item is registered. - Rented vs. Owned: If you lease the Bobcat, the bank/dealer requires specific insurance proof. If you own it outright, don’t skimp on the coverage just because the bank isn’t watching.
The “Why” (The Trap): Valuation and Limits
Trap 1: The Limit.
Small tool policies often have a “Maximum Item Value” of $2,500 or $5,000. A skid steer blows past this.
Trap 2: Coinsurance.
If you lump the Bobcat into a $50,000 blanket policy with your drills, and the Bobcat is worth $45,000, you have left only $5,000 for everything else. You are likely underinsured, triggering the Coinsurance Penalty (see Article 1).
The Investigation: “I Called Them”
I compared specialized heavy equipment insurers.
1. KTAC (Kubota/Specialty)
- Pros: They specialize in this. Covers theft, fire, collision, and even accidental damage (tipping over).
- Transport: Covers the machine while being trailered (which Auto insurance doesn’t).
2. Standard Carrier (Travelers)
- Pros: Can bundle with General Liability.
- Cons: Often requires a high deductible ($1,000+) and strict security requirements (fenced yard).
Comparison Table: Heavy Iron Coverage
| Scenario | Standard Tool Floater | Heavy Equipment Policy |
| Item Limit | Low ($5k max) | High ($100k+) |
| Rollover Damage | Often Excluded | Covered |
| Theft | Covered | Covered |
| While Transporting | Varies | Covered |
Step-by-Step Action Plan
- Install a Kill Switch: Hide a battery disconnect switch ($20) in the engine bay. If they can’t start it, they can’t drive it onto the trailer.
- Register with NER: Go to NER.net. Register the serial/PIN. It helps police identify it if recovered.
- Get a Separate Policy: Don’t mix heavy iron with hand tools. Get a dedicated policy for the machine. It simplifies claims and protects your tool limits.
- Photograph the PIN Plate: The Product Identification Number (PIN) is like a VIN. Have a photo of it.
FAQ
Q: Does my Auto policy cover the Bobcat while I’m towing it?
A: No. Auto covers the trailer. The Bobcat is “cargo.” You need the Equipment policy.
Q: What if I hit a gas line with the Bobcat?
A: That is General Liability. The Equipment policy covers damage to the Bobcat; Liability covers the explosion you caused.
[IMAGE: Photo of a universal “Heavy Equipment Key” set available on Amazon for $20, illustrating the security risk.]