My $100k Excavator Was Vandalized On Site: Equipment Floater Paid for Repairs
The Morning After Halloween
We left our brand-new, $100,000 excavator at a job site over Halloween weekend. On Monday morning, we arrived to a sickening sight. Vandals had smashed every window in the cab, slashed the hydraulic lines, and poured sand into the fuel tank. The damage was over $20,000. My other insurance policies wouldn’t cover it. But our Equipment Floater policy responded immediately. An adjuster was on site that day, and the policy paid for all the repairs and the lost rental income while the machine was down. It was a lifesaver.
Protecting Your Heavy Iron: Construction Equipment Floater Insurance Guide
Your Most Valuable Employee Needs Its Own Insurance
As a contractor, your most valuable and expensive employee is probably your excavator or your dozer. It works all day and never complains. But what happens if it gets stolen, vandalized, or damaged in an accident? It can’t just go to the doctor. It needs its own special insurance policy. An Equipment Floater is that policy. It’s the specialized coverage that protects your heavy iron from the physical risks it faces every day, ensuring that if your best “employee” is taken out of commission, you have the money to fix or replace it.
Equipment Floater Explained: Covering Your Mobile Machinery Wherever It Goes
The Insurance That “Floats” With Your Gear
A young contractor asked me why it’s called an “Equipment Floater.” I explained that a standard property policy covers things at one specific address, like your shop. But your excavator doesn’t stay at the shop. It “floats” from job site to job site. This special type of Inland Marine insurance is called a floater because the coverage follows your equipment wherever it goes—whether it’s at a job site, in transit on a trailer, or parked at your yard. It’s mobile coverage for your mobile assets.
What Does an Equipment Floater Cover? (Theft, Damage, Fire, Collision During Transit?)
The Policy That Protects Against (Almost) Everything
Our new bulldozer slid off the trailer while we were unloading it, causing major damage to the undercarriage. A few months later, our backhoe was stolen from a job site. In both cases, our Equipment Floater policy covered the loss. This policy is “all-risk” coverage, meaning it protects your machinery from almost any physical peril: theft, fire, vandalism, flooding, and even collision or overturn while being transported. It’s the comprehensive physical damage protection your expensive equipment needs.
Scheduled vs. Unscheduled Equipment Coverage: Choosing the Right Option
The Big Stuff and the Small Stuff
When I set up my Equipment Floater policy, my agent gave me two options. For my big, expensive pieces—like my $120,000 excavator and my $80,000 dozer—we “scheduled” them. We listed each one with its serial number and specific value. This gets the best rate. For all my smaller gear—like generators, pumps, and plate compactors—we used an “unscheduled” blanket limit of $50,000. This way, I didn’t have to list every single small item, but I still had coverage for the whole group.
Replacement Cost vs. Actual Cash Value for Your Construction Equipment
The New Machine vs. The Old, Depreciated One
My five-year-old skid steer, which was worth about $25,000, was destroyed in a fire. I had two choices when I bought my policy. I could have insured it for its “Actual Cash Value” (ACV), which means the insurer would have cut me a check for the depreciated value of $25,000. Instead, I had paid a higher premium for “Replacement Cost” (RC) coverage. Because of that, the insurer gave me enough money to buy a brand-new, current model year skid steer, which cost $45,000.
Comparing Equipment Floater Quotes: List Your Gear Accurately!
The Garbage In, Garbage Out Rule
When I was getting quotes for my first Equipment Floater, I was tempted to fudge the values of my machines to get a lower premium. My agent stopped me. He said, “Insurance is garbage in, garbage out. If you tell the company your excavator is only worth $50,000 to save a few hundred bucks, they will only pay you $50,000 when it gets stolen, even if it’s really worth $100,000.” The key to getting a good quote that will actually protect you is a detailed, accurate, and honest list of your equipment.
Does the Floater Cover Rented or Leased Equipment? Check Endorsements!
The Rental I Had to Pay For
I rented a large excavator for a one-week job. The rental contract made me responsible for any damage. On the last day, my operator accidentally backed it into a wall, causing $10,000 in damage. I assumed my Equipment Floater would cover it. I was wrong. My policy only covered equipment I owned. What I needed was a specific “Rented/Leased Equipment” endorsement. Because I didn’t have it, I had to pay for the repair out of my own pocket. It was a very expensive lesson.
Filing a Claim for Damaged or Stolen Construction Equipment
The Police Report is Your Golden Ticket
My work truck, with about $5,000 of small tools and a plate compactor inside, was stolen from a hotel parking lot. My first call was to the police to file a report. My second call was to my insurance agent. The first thing the claims adjuster asked for was the police report number. For theft claims, a police report is your golden ticket. It’s the official documentation that proves a crime occurred. Without it, the insurance company will have a very hard time approving your claim.
My Backhoe Was Stolen from a “Secure” Yard: Equipment Floater Claim Story
The Lock That Didn’t Stop a Professional
I thought my equipment was safe. I left my backhoe at a job site that was fully fenced, gated, and locked. On Monday morning, the gate was cut open and the machine was gone. Professional thieves had targeted it. I was devastated, but I knew I had the right coverage. I called my agent, filed a claim on my Equipment Floater policy, and provided the police report. The adjuster processed the claim, and within a few weeks, I had a check for the full, insured value of my machine.
Protecting Tools Left Inside Equipment Cabs? Usually Limited.
The Cab Was a Toolbox, Now It’s Empty
Thieves broke into our job site and didn’t steal the dozer, but they smashed the cab window and stole everything inside. My operator had about $3,000 worth of his personal tools, GPS gear, and laser levels in there. When we filed the claim, we were disappointed to learn that our Equipment Floater policy had a sub-limit. It would cover the machine itself for its full value, but it only provided up to $1,000 of coverage for “miscellaneous tools and items” left inside.
Coverage During Loading, Unloading, and Transport Over the Road
The Tip-Over on the Tilt-Bed
My driver was loading our mini-excavator onto a tilt-bed trailer. He came up the ramp a little too fast and at a bad angle. The entire machine tipped over and fell off the side of the trailer, causing major damage. This is a classic, common accident. Our Equipment Flooter policy covered it. It’s designed to protect our machinery not just at the job site, but during the risky processes of loading, unloading, and transport from one site to another.
How Job Site Security Measures Can Lower Your Equipment Floater Premiums
The GPS That Lowered My Premium
My insurance premium for my fleet of excavators was painfully high due to the risk of theft. My agent told me I could get a discount if I installed anti-theft devices. I spent $5,000 installing hidden GPS trackers and fuel cut-off switches on all my machines. I sent the invoices to my insurer. At my next renewal, they gave me a 15% “theft prevention” credit, which saved me almost $4,000. The investment in security paid for itself in insurance savings in just over a year.
Understanding Deductibles for Equipment Damage Claims
You Pay the First Part of the Repair
A large rock fell and smashed the side window and door of our loader’s cab. The repair bill from the dealer was $3,500. I filed a claim on our Equipment Floater policy. My agent reminded me that our policy had a $1,000 deductible. That meant we were responsible for paying the first $1,000 of the repair cost, and the insurance company sent us a check for the remaining $2,500. The deductible is the amount of risk you agree to retain on every claim.
Equipment Floater: Essential Inland Marine Coverage for Contractors
The Lifeblood of Your Business
For a contractor, your equipment is the lifeblood of your business. Without your excavator, your dozer, or your paver, you can’t work. You can’t earn money. An Equipment Floater policy is the transfusion that keeps your business alive after a major accident or theft. It injects the cash you need to repair or replace your vital machinery, ensuring that one catastrophic event doesn’t cause your company’s heart to stop beating. It’s an absolutely essential coverage.