Whether you’re an independent contractor working on your own or the owner of a company with an extensive collection of tools and equipment, protecting your investment is essential.
Your most important investment is your collection of tools. Without your tools, jobs can’t get finished, employees can’t work, and you’d be out of business pretty quickly.
You’ve likely spent hundreds or even thousands on your tools. Protecting them with insurance for tools can help you safeguard that investment and keep your company on track and working without any costly or annoying delays.
If you’re still on the fence about whether you need tool insurance for contractors, keep reading for 5 reasons why it’s an absolute must.
- Protecting Your Business from Theft
When it comes to insuring tools and equipment, there are a variety of threats that you’ll be protecting them from, but perhaps the most common is theft.
If you work on a job site where other workers are also present or in an area without security, thefts can happen without you even realizing.
While replacing one or two tools might not be a major setback, if you’re constantly having tools come up missing, it could put a serious financial strain on your business.
If you’re an independent contractor, your tools are still at risk. Nearly 20 percent of all property crimes are burglaries. Insurance for contractors can help you purchase replacements after a threat to get you back to work fast without running your business bank account dry.
- In Case of Malfunctions
Another situation that contractors insurance can cover is a malfunction.
If you ‘re using power tools or heavy equipment, a malfunction could cause you or an employee to sustain injuries.
Additionally, if the equipment malfunctions and causes damage to a property, it could leave you financially responsible for the repairs.
- Cleanup of Pollutants
If the equipment and tools that you’re using have the potential to become an environmental hazard, contractors insurance is even more important.
It can help you cover legal fees, cleanup, and more in the event of an accident.
When choosing insurance, be sure to review it to check whether it will cover damage caused by pollutants.
- Covering a Rental During Downtime
If a tool breaks or fails, you’ll be facing more than just a replacement cost. If you can’t buy a replacement at your local hardware store, you could also be looking at a serious delay in work while you wait for a replacement to come in.
When working on a job site, this could mean a very costly setback. You might keep other workers from being able to do their job or cause deadlines to have to be pushed back.
As an independent contractor, not having your tools might mean having to cancel appointments and losing out on important income in the meantime.
If you choose the right insurance, you could get coverage to rent tools or make up for downtime to keep you from suffering further financial strain.
- Specialized Equipment and Tools
Similar to equipment that poses an environmental hazard, other types of specialized equipment might require specialized insurance.
When it comes to insurance for tools, there is no one-size-fits-all solution.
Insurance coverage for specialty tools can cover unique malfunctions and failures.
Choosing the Right Insurance for Tools
If you’re a contractor, finding the right insurance for tools can help you protect your investment, avoid costly delays, and more.
Another important reason to get insured is compliance. Different states carry different requirements. If you’re operating in California, check out these trends in compliance standards you need to know.
Top Contractors Insurance Services is a full-service contractor insurance agency handling workers compensation, general liability, construction bonds, and auto quotes.