Heavy Equipment Insurance: Cost, Companies & Quotes From $11

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Updated: March 27, 2025 . 7 min read

Written by Ofir Sahar

CEO & Founder

Ofir Sahar

CEO & Founder

Some of the products on this page come from partners who may compensate us when you click on their links or take specific actions. This helps us keep our content free. That said, our opinions are our own and based on independent analysis.

 

Working with heavy equipment is risky and the probability of an accident occurring is so high. This is where heavy equipment insurance coverage gets into the fray – tailored business insurance that mitigates costs associated with accidents and other exposures so that your business’s valuation won’t decrease.

This guide explains various policies we’re going to cover the details of business insurance for heavy equipment.   Also, we’ll review the companies offering the best and cheapest heavy equipment insurance coverage.

 

 Heavy Equipment Rental Insurance

Those who rent bulldozers, snow plow, backhoes, and other types of heavy equipment can never trust the owner to provide coverage if something goes wrong. The owner of rented heavy equipment has liability. However, this is only the case if injuries or deaths happen due to defects.

 And so, it might be difficult to file a claim against the equipment owner’s construction equipment insurance coverage. 

However, if it turns out that the accident was due to the mistake of those who rented the heavy equipment, there’s no legal responsibility on part of the heavy equipment owner. 

Those who rent heavy equipment should get heavy equipment rental insurance. This policy provides coverage for the cost of accidents and injuries associated with rented heavy equipment.

 Also, this insurance takes care of repair and replacement. A heavy equipment insurance policy providing comprehensive coverage offers the following:

  • General liability insurance
  • Equipment breakdown insurance
  • Inland marine insurance

 

 

General Liability Insurance for Heavy Equipment

This insurance will account for the costs of personal injury claims or property damage third parties file. By the way, many carriers commonly offer general liability as a primary inclusion in heavy construction equipment insurance policies. 

The table below shows the injuries and their estimated settlement cost, which is very costly without construction equipment insurance policy and other related coverages.

Type of Injury  Settlement Cost 
Head and Neck $85,000
Spinal Cord Injury $313,567
Broken Bones $13,452
Concussion  $800.10
Burns $208,231
Cuts and Lacerations  $5,423
Amputation  $89,563
Death $1,000,000

Commercial Auto Insurance for Heavy Equipment

Backhoes and dozers are the most common heavy equipment involved in road accidents. Injuries these machines cause are fractures, head injuries, amputations, cuts, lacerations, and deaths.  

The table below shows the importance of earthmoving insurance with commercial auto coverage by outlining the cost of settlement according to the severity of injuries. 

Severity of Injury  Person-Injury or Per-Vehicle Cost
Death $1,567,833
Disabling $83,023
Evident  $21,445
Possible $21,321
Cost per vehicle damage $3,213

 

Workers Compensation Insurance for Heavy Equipment Operators and Technicians

Workers’ compensation insurance is a common inclusion in heavy construction equipment insurance rates, which covers backhoes, dump trucks, bulldozers, compactors, pavers, tower cranes, excavators, and graders.

 Heavy equipment might injure operators and technicians and workers’ compensation insurance will help with this. The coverages of workers’ compensation insurance are as follows:

Coverage Function 
Employee Treatment/Medical Procedure  workers’ compensation insurance covers the surgeries and therapies of an injured heavy equipment technician or operator
Hospitalization  In line with this, workers’ compensation insurance takes care of hospital bills 
Medication  Workers’ compensation insurance pays the expenses for a heavy equipment operator or technician’s medication 
Rehabilitation  If rehab is needed to correct such impairment, workers’ compensation insurance will pay for the fees of the therapist 
Lost Income Compensation  Workers’ compensation supplements lost income by providing a weekly allowance equal to two-thirds of the average weekly wage. 

 

 

Bobtail Insurance for Heavy Machinery

Freighters, large trucks, and tractor-trailers are covered by bobtail insurance. The terms of this insurance apply the moment the said machines get involved in an accident while traveling with no trailer attached to get another load. 

 

 

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Inland Marine Insurance for Heavy Equipment

Some businesses haul dump trucks, dozers, and other heavy equipment and take them to distant project sites. Inland marine insurance will reimburse losses of the owner if his or her heavy equipment got damaged during the trip. 

This insurance covers destruction or damage due to fire, theft, vandalism, other types of malicious mischief, and acts of nature. 

 

How Much Does Heavy Equipment Insurance Cost?

The cost of heavy machinery insurance varies since it depends on the type of equipment the business is looking to insure.

However,The average heavy equipment insurance cost is $256 per month or $3,072 per year for a $1 million general liability coverage.  These are what you’ll have to pay for based on the coverages needed:

Coverage  Insurance Rates per Month Insurance Rates per Year
General liability+equipment breakdown $108 $1,296
General liability+commercial auto $156 $1,872
General liability only $89 $1,068
General liability+commercial auto+equipment breakdown $190 $2,280

 

Let’s talk about contractors equipment insurance cost. On average, this is $17 a month or $204 a year. Pricing absolutely depends on the number of equipment needing coverage and how long a contractor was using them.

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Best Heavy Equipment Insurance Companies

Here’s a review of some of the best heavy construction equipment insurance companies in America. Know about each company’s pros, cons, and pricing for a $1 million general liability coverage. 

 

CoverWallet

  CoverWallet is an online insurance broker. With this company, you can get quotes and compare the pricing of different insurance companies offering tailored heavy equipment insurance coverage. CoverWallet allows you to buy any insurance products from any carrier at its website. 

As soon as you get insured, CoverWallet grants you access to the MyCoverWallet app where you can pay premiums, check the status of insurance policies, and get certificates of insurance online.

 Average  Cost:$225 per month 

Rating:10/10

Pros

  • Cancel a policy anytime
  • Stable rates
  • Easy policy management with the MyCoverWallet app

Cons

  • Doesn’t have tailored heavy equipment insurance coverage 

 

Liberty Mutual

 

Pros

  • Offers coverage for leased, loaned, or rented equipment
  • Deductible depends on the type  of equipment and the cause of damage or loss

Cons

  • Claims take time to be processed

Liberty Mutual provides heavy equipment policies through its contractor’s equipment insurance package. Heavy equipment covered are cranes, skid steers, dump trucks, bulldozers, backhoes,and loaders.

 Liberty Mutual’s insurance for heavy equipment protects you from losses related to repair or replacement of crucial construction tools, as well as contractors plant and machinery insurance.

 Average  Cost:$268 per month 

Rating:9/10

Compare Heavy Equipment Insurance Quotes Online

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Progressive

  Progressive’s heavy equipment insurance coverage is worth the try even though it only offers coverage for trucks.  One reason why it’s great is that customers are sure to enjoy fast processing of claims.

 Also, progressive offers federal and state filings – documents your business need to comply with to attract clients and initiate ambitious building projects.

Average  Cost:$247 per month 

Rating:8/10

Pros

  • In-house adjusters for fast claims process
  • Rates can be discounted if the business if running for more than three years

Cons

  • Only available for trucks

 

 

The Hartford 

 The Hartford’s heavy equipment insurance coverage is very comprehensive. Aside from backhoe insurance, trucks, cranes, and other equipment, it also ensures handheld tools, rented equipment, and employee safety gear.

 You’re also covered in cases of disaster too because.The Hartford’s heavy construction equipment insurance policies covers debris cleanup.

Average  Cost:$268 per month 

Rating:7/10

 

Pros

  • Covers rented equipment, small tools, and employee safety gears aside from heavy equipment
  • Pays for debris cleanup after an accident

Cons

  • Doesn’t insure small contractors

 

 

State Farm 

 State Farm has two types of heavy equipment insurance coverage. If you’re using heavy equipment for agribusiness, then there’s State Farm/Ranch property insurance that covers equipment like tractors and trailer trucks. 

On the other hand, the State Farm Contractor insurance is what you need to get if you’re business is concerned with electrical services, plumbing, HVAC installation, interior decoration, or lawn care service. 

Average  Cost:$280 per month 

Rating:6/10

Pros

  • Two type of heavy equipment insurance
  • Customizable

Cons

  • Doesn’t insure heavy equipment for businesses in the construction industry

 

About the author

Ofir Sahar

Ofir is the founder and CEO of Insuranks. He established Insuranks in 2019 from scratch and has been running educational insurance websites since 2009 on a mission to help businesses...See full bio.

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