The Specialty Machinery And Tools Insurance Guide

Machinery And Tools Insurance. This guide provides information on excess, surplus and specialty lines small business insurance policies and risks.
Here you can find basic descriptions of the specific industry risks or specialty coverage types available for Machinery And Tools Insurance.
For certain types of small businesses, particularly new ones - it is often very hard to know what types of commercial insurance is needed, what the risks are that should be covered - and where to find coverage.
We wanted to provide reference for specialty commercial insurance to help our readers get a better understanding of Machinery And Tools Insurance policies they might need to do business.
Learn about Specialty Machinery And Tools Insurance to better understand common risks, exposures and the types of commercial insurance coverage available to protect your small business and it's operations.
Machinery And Tools Insurance Types
Click on the links below to learn more about Specialty Machinery And Tools Insurance types and coverages:
- What Is Specialty Machinery And Tools Insurance?
- Contractors Equipment Insurance
- Crane And Rigging Contractors Insurance
- Equipment And Tool Rental Services Insurance
- Equipment Breakdown Insurance
- Equipment Leasing-Lessor Protection Insurance
- Foundries Insurance
- High Technology Insurance
- Logging Operations Insurance
- Material Handling Contractors Insurance
- Welding Supplies Sales And Distribution Insurance
- What Does Specialty Machinery And Tools Insurance Cover & Pay For?
What Is Specialty Machinery And Tools Insurance?

Specialty machinery and tools insurance is a specialized type of insurance that is designed to protect businesses that rely on specialized equipment and tools to operate. This type of insurance is typically used by companies that operate in industries such as construction, manufacturing, and agriculture.
The purpose of specialty machinery and tools insurance is to provide coverage for the financial loss that a business may incur as a result of damage, theft, or loss of specialized equipment and tools. This type of insurance can also provide coverage for the costs associated with repairing or replacing the equipment and tools that were damaged or stolen.
One of the key benefits of specialty machinery and tools insurance is that it can help to protect businesses from unexpected financial losses. For example, if a business owner's equipment is stolen, they may be faced with the cost of replacing the equipment, which can be quite expensive. With specialty machinery and tools insurance, the business owner can receive financial assistance to help them cover the cost of replacing the equipment.
Another benefit of specialty machinery and tools insurance is that it can provide coverage for the costs associated with repairing or maintaining the equipment and tools. For example, if a business owner's equipment breaks down, they may be faced with the cost of repairing or replacing the equipment. With specialty machinery and tools insurance, the business owner can receive financial assistance to help them cover the cost of repairing or replacing the equipment.
Specialty machinery and tools insurance can also provide coverage for the costs associated with liability. For example, if a business owner's equipment causes damage to another person's property, the business owner may be held liable for the damages. With specialty machinery and tools insurance, the business owner can receive financial assistance to help them cover the cost of liability.
In conclusion, specialty machinery and tools insurance is a specialized type of insurance that is designed to protect businesses that rely on specialized equipment and tools to operate. This type of insurance can provide coverage for the financial loss that a business may incur as a result of damage, theft, or loss of specialized equipment and tools. It can also provide coverage for the costs associated with repairing or replacing the equipment and tools that were damaged or stolen, and for the costs associated with liability. It is an essential coverage for any business that rely on special equipment to operate.
What Is 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 usage are common.
What Type Of Insurance Do Crane And Rigging Contractors Need?
Crane operators and riggers are high-risk businesses. Huge bodily injury losses that could financially ruin a large operation if uninsured or inadequately insured are possible. Exposures also include damage to property, such as destruction of a building, bridge, or train track. There is also the consequential loss of use to utility customers if utility lines are damaged. High liability limits are necessary and commercial liability umbrellas should be used to provide additional limits. Crane and derrick contractors, rigging, and millwright contractors are eligible.
What Type Of Insurance Do Equipment And Tool Rental Services Needf?
Equipment and tool rental risks are difficult to place. Coverage for tools and equipment rented to persons who are often unfamiliar with the equipment is needed because the items rented may be damaged or broken. The liability exposure is also significant because of the renter's unfamiliarity with the equipment especially when chainsaws and other power tools that can cause serious injury are available.
What Is Equipment Breakdown Insurance?
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 can be direct or indirect such as loss of income or extra expense.
What Is Equipment Leasing-Lessor Protection Insurance?
Equipment leasing contracts require that the lessee insure the leased equipment. However, at times the lessee does not meet its obligation. In order to protect its interest in the equipment when such a lapse occurs, the owner can purchase contingent coverage that pays for its interest in the equipment. This coverage can be broadened to include the lessee's interest.
What Type Of Insurance Do Foundries Need?
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.
What Type Of Insurance Do High Technology Exposures Need?
These are cutting edge industries, including businesses that develop new sources of and uses for energy, robotics, nanotechnology, and outer space travel. Large insurance brokers, insurers, and reinsurers have established special departments to handle significant technology exposures.
What Type Of Insurance Do Logging Operations Need?
There are certain parts of the country where logging and lumbering operations are important to the economy, and agents and brokers must find and maintain markets that understand and write logging and lumbering risks. Placing coverage with specialty carriers is necessary due to the special equipment and vehicles used in logging operations and to transport the logs to the mill for sawing and shaping into lumber. In addition to the liability hazards, workers compensation coverage is also often difficult to place and must be handled by carriers that are familiar with this class of business.
What Is Material Handling Contractors Insurance?
This coverage is designed for contractors that have significant care, custody, and control exposures for property of others, such as crane, derrick, and dragline operators, rigging contractors, and millwrights. Insurance coverage forms and policies are available that provide commercial general liability coverage, including coverage for property of others in the insured's care, custody, and control for hoisting and rigging. Additional limits are available through umbrella liability as well as coverage for the insured's contractor's equipment.
What Type Of Insurance Do Welding Supplies Sales And Distribution Businesses Need?
Welding supplies consist of multiple types of equipment. However, the most volatile aspect of the business is the gas supplied to the welder. The storage of the gases on premises adds to the fire and explosion potential and the supply of the gases to the welder adds to the product exposure.
What Does Specialty Machinery And Tools Insurance Cover & Pay For?

Following are some examples of Specialty Machinery And Tools Insurance claims and the corresponding insurance coverages that can help pay for them:
Example 1: Equipment Failure
A business that relies heavily on specialized machinery for production suddenly experiences a critical equipment failure. The malfunction results in significant downtime, leading to a loss of business income and additional expenses for emergency repairs. The business's Specialty Machinery and Tools Insurance can help in this situation. The equipment breakdown cover within the policy can cover the cost of repairing or replacing the faulty machinery. Additionally, it can compensate for the loss of income and extra expenses incurred due to the business interruption caused by the equipment failure.
Example 2: Employee Injury
An employee working with a specialized tool gets injured due to a mechanical fault in the tool. The employee decides to sue the company for damages, medical expenses, and loss of income. In this case, the liability cover within the Specialty Machinery and Tools Insurance can help. It can pay for the legal defense costs, court fees, and any settlement or judgment awarded to the employee.
Example 3: Fire Damage
A fire breaks out in the facility housing the specialty machinery, leading to extensive damage. The business faces the challenge of replacing the destroyed machinery and dealing with business interruption. Specialty Machinery and Tools Insurance can step in to cover the costs associated with replacing the machinery and compensate for the loss of business income until operations can resume normally.
Example 4: Theft or Vandalism
A business's high-value specialty machinery gets stolen or vandalized. The cost to replace such machinery can be exorbitantly high, potentially crippling the business. Specialty Machinery and Tools Insurance can help by covering the costs to replace the stolen or damaged machinery, thereby ensuring the business's continuity.
Example 5: Natural Disasters
A natural disaster, such as a flood or an earthquake, damages a company's specialty machinery. The cost to repair or replace this machinery could be substantial, and the business might also suffer from downtime. The Specialty Machinery and Tools Insurance can provide financial aid to cover the repair or replacement costs and compensate for the business income loss due to the disaster.
Machinery And Tools Insurance - The Bottom Line
We hope that the Machinery And Tools Insurance helps you to better understand the some of the specialty small business commercial insurance policies available for your business. To find out what types of coverage your unique business needs, speak to a professional commercial broker with experience in insuring businesses like yours.
Specialty Small Business Insurance Guide By Industry, Risk Or Policy Type
- Accident And Sickness / AD&D
- Aircraft And Airports
- Amusement Parks And Rides
- Animals And Birds
- Arts And Antiques
- Auctions And Farmers Markets
- Automobiles, Trucks And Recreational Vehicles
- Bonds
- Business Risks
- Clubs And Leisure Time Activities
- Communication
- Community Service Organizations
- Computer
- Consultants
- Contractors
- Dealers And Distributors
- Design
- Directors And Officers Liability
- Drugs And Alcohol
- Employee Protection
- Energy
- Entertainment
- Environmental Risks
- Errors And Omissions
- Excess
- Farm Risks
- Financial Institutions And Services
- Firearm And Shooting
- Food And Restaurants
- Government
- Habitational
- Hazardous Materials
- Health Risks
- Hotels And Motels
- Inland Marine
- Insurance Services
- Machinery And Tools
- Manufacturing
- Marine
- Medical Centers And Clinics
- Medical Malpractice
- Merchandise
- Mobile And Modular Homes
- Motorcycle Risks
- Natural Disasters
- Nonprofit Agencies
- Oil And Chemical
- Physical Damage
- Prize Indemnification
- Product Liability
- Programs
- Property
- Railroad
- Real Estate
- Retail Stores
- Schools And Education
- Security Risks And Equipment
- Service Businesses
- Sports And Hobbies
- Substandard Risks
- Travel
- Weather Related
- Workers Comp