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:
- 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 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.
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
- Business Risks
- Clubs And Leisure Time Activities
- Community Service Organizations
- Dealers And Distributors
- Directors And Officers Liability
- Drugs And Alcohol
- Employee Protection
- Environmental Risks
- Errors And Omissions
- Farm Risks
- Financial Institutions And Services
- Firearm And Shooting
- Food And Restaurants
- Hazardous Materials
- Health Risks
- Hotels And Motels
- Inland Marine
- Insurance Services
- Machinery And Tools
- Medical Centers And Clinics
- Medical Malpractice
- Mobile And Modular Homes
- Motorcycle Risks
- Natural Disasters
- Nonprofit Agencies
- Oil And Chemical
- Physical Damage
- Prize Indemnification
- Product Liability
- Real Estate
- Retail Stores
- Schools And Education
- Security Risks And Equipment
- Service Businesses
- Sports And Hobbies
- Substandard Risks
- Weather Related
- Workers Comp
Types Of Small Business Insurance - Requirements & Regulations
Perhaps you have the next great idea for a product or service that you know will appeal to your local area. If you've got a business, you've got risks. Unexpected events and lawsuits can wipe out a business quickly, wasting all the time and money you've invested.
Operating a business is challenging enough without having to worry about suffering a significant financial loss due to unforeseen and unplanned circumstances. Small business insurance can protect your company from some of the more common losses experienced by business owners, such as property damage, business interruption, theft, liability, and employee injury.
Purchasing the appropriate commercial insurance coverage can make the difference between going out of business after a loss or recovering with minimal business interruption and financial impairment to your company's operations.
Insurance is so important to proper business function that both federal governments and state governments require companies to carry certain types. Thus, being properly insured also helps you protect your company by protecting it from government fines and penalties.
Small Business Insurance Information
In the business world, there are many risks faced by company's every day. The best way that business owners can protect themselves from these perils is by carrying the right insurance coverage.
The The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight.
Commercial insurance is particularly important for small business owners, as they stand to lose a lot more. Should a situation arise - a lawsuit, property damage, theft, etc. - small business owners could end up facing serious financial turmoil.
According to the SBA, having the right insurance plan in place can help you avoid major pitfalls. Your business insurance should offer coverage for all of your assets. It should also include liability and casual coverage.
Types Of Small Business Insurance
Choosing the right type of coverage is absolutely vital. You've got plenty of options. Some you'll need. Some you won't. You should know what's available. Once you look over your options you'll need to conduct a thorough risk assessment. As you evaluate each type of insurance, ask yourself:
- What type of business am I running?
- What are common risks associated with this industry?
- Does this type of insurance cover a situation that could feasibly arise during the normal course of doing business?
- Does my state require me to carry this type of insurance?
- Does my lender or do any of my investors require me to carry this type of policy?
A licensed insurance agent or broker in your state can help you determine what kinds of coverages are prudent for your business types. If you find one licensed to sell multiple policies from multiple companies (independent agents) that person can often help you get the best insurance rates, too. Following is some information on some of the most common small business insurance policies:
|Business Insurance Policy Type||What Is Covered?|
|General Liability Insurance||What is covered under commercial general liability insurance? It steps in to pay claims when you lose a lawsuit with an injured customer, employee, or vendor. The injury could be physical, or it could be a financial loss based on advertising practices.|
|Workers Compensation Insurance||What is covered under workers compensation insurance? This type of insurance protects a business and its owner(s) from claims by employees who suffer a work-related injury, illness or disease. Workers comp typically provides the injured employee with benefits to cover medical expenses, a portion of his/her lost wages, rehabilitation costs if applicable, and permanent partial or permanent total disability.|
|Product Liability Insurance||What is covered under product liability insurance? I pays an injured party's settlement or lawsuit claim arising from a defective product. These are usually caused by design defects, manufacturing defects, or a failure to provide adequate warning or instructions as to how to safely use the product.|
|Commercial Property Insurance||What is covered under business property insurance? General liability policies don't cover damages to your business property. That's what commercial property insurance is for. It protects all of the physical parts of your business: your building, your inventory, and your equipment, giving you the funds you need to replace them in the event of a disaster. If you work from home, you might consider a Home Based Business Insurance policy instead.|
|Business Owners Policy (BOP)||What is covered under a business owners policy (BOP)? This is a policy designed for small, low-risk businesses. It simplifies the basic insurance purchase process by combining general liability policies with business income and commercial property insurance.|
|Commercial Auto Insurance||What is covered under business auto insurance? This type of insurance covers automobiles being used for business purposes. This could include a fleet of business-only vehicles or a single company car. In some cases it might cover your car or your employee's car while they're being used for business. These policies have much higher limits, ensuring you can cover your costs if one of these vehicles gets into an accident.|
|Commercial Umbrella Policies||What is covered under commercial umbrella insurance? This type of policy is a sort of "gap" insurance. It covers your liability in the event that a court verdict or settlement exceeds your general liability policy limits.|
|Liquor Liability Insurance||What is covered under liquor liability insurance? It covers bodily injury or property damage caused by an intoxicated person who was served liquor by the policy holder.|
|Professional Liability (Errors & Omissions)||What is covered under professional liability insurance? This type of business insurance is also known as malpractice oe E&O. It covers the damages that can arise from major mistakes, especially in high-stakes professions where mistakes can be devastating.|
|Surety Bond||What is covered under surety bonds? Bonding is a contract where one party, the SURETY (who assures the obligee that the principal can perform the task), guarantees the performance of certain obligations of a second party, the PRINCIPAL (the contractor or business who will perform the contractual obligation), to a third party, the OBLIGEE (the project owner who is the recipient of an obligation).|
Who Needs General Liability Insurance? - Virtually every business. A single lawsuit or settlement could bankrupt your business five times over. You might also need this policy to win business. Many companies and government agencies won't do business with your company until you can produce proof that you've obtained one of these policies.
Business Insurance Required by Law
If you have any employees most states will require you to carry worker's compensation and unemployment insurance. Some states require you to insure yourself even if you are the only employee working in the business.
Your insurance agent can help you check applicable state laws so you can bring your business into compliance.
Other Types Of Small Business Insurance
There are dozens of other, more specialized forms of small business insurance capable of covering specific problems and risks. These forms of insurance include:
- Business Interruption Insurance
- Commercial Flood Insurance
- Contractor's Insurance
- Cyber Liability
- Data Breach
- Directors and Officers
- Employment Practices Liability
- Environmental or Pollution Liability
- Management Liability
- Sexual Misconduct Liability
Whether you need any or all of these policies will depend on the results of your risk assessment. For example, you probably don't need an environmental or pollution policy if you're running an IT company out of a leased office, but you would need data breach and cyber liability policies to fully protect your business.
Also learn about small business insurance requirements for general liability, business property, commercial auto & workers compensation including small business commercial insurance costs. Call us (855) 767-7828.