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Heavy Equipment Insurance: Cost, Companies & Quotes

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Working with heavy equipment is risky as bad things can easily happen. This is where heavy equipment insurance gets into the fray - a business insurance that allows you to mitigate costs associated with accidents so that your business's valuation won't decrease.

Over the course of this guide, 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. Let’s start this discussion by answering the most pertinent question: how much does heavy equipment insurance cost?

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. That being said a full-sized excavator, bulldozer, or a huge dump truck will undoubtedly be more expensive than insuring a small tractor, skid steer or food truck. Business size, industry, and years of business operation are other factors one needs to consider too when looking for the best heavy equipment insurance. 

The average heavy equipment insurance cost is $256 per month or $3,075 per year. This is just generalized pricing though and if you want to know the specific pricing of carriers,  here’s a table that will help you with heavy equipment insurance quote comparison. 

CompanyCost per monthCost per year
Progressive$247$2,964
Liberty Mutual$268$3,216
The Hartford$230$2,760
State Farm$280$3,360
Average$256$3,075

We know that aside from generic heavy equipment insurance rates, you also want to get an idea of heavy construction equipment insurance rates.  These are what you’ll have to pay for based on the coverages needed:

Coverage Cost per monthCost 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. 

Heavy Equipment Rental Insurance

Those who rent bulldozers, 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:

  • True umbrella coverage

  • General liability coverage

  • Equipment breakdown coverage

  • Renters’ liability coverage

  • Inland marine coverage

Heavy equipment insurance can be availed as a short-term construction equipment rental insurance policy that’s very useful for construction companies and other businesses, which specialize in doing projects from one place to the next. The terms of this policy aren’t different from the terms of heavy machinery insurance policy. The only difference is that the policyholder can set its effective date at 1 month, 2 months, 3 months, up to a maximum of 1 year. 

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Contractors Tool and Equipment Insurance

Contractors tools and equipment insurance caters to the needs of construction contractors, piping contractors, house building contractors, and many more.  Equipment covered under this insurance policy are:

  • Power tubing cutters

  • Helmets

  • Power drills

  • CNC routers

  • Blow torches

  • Saws

  • Welding machines

  • Grinders

  • Cement mixers

  • Ladders 

  • Field lighting

This insurance policy also offers contractor’s equipment rental insurance coverage. As the name implies, the coverage applies when the above-mentioned equipment is rented or borrowed.  Contractor’s equipment rental insurance becomes useful when the equipment owner demands reimbursement or replacement of the rented equipment after it got broken. 

Contractors tools and equipment cease to provide coverage the moment contractors use machines such as backhoes, bulldozers, mobile cement mixers, and other similar machines.  To get coverage, contractors decide to have heavy contractors equipment insurance. 

General Liability Insurance for Heavy Equipment

Getting general liability insurance is very crucial for  construction firms, mining companies, earthmovers, and other businesses relying on heavy equipment to operate. This insurance will account for the costs of personal injury claims injured pedestrians file. By the way, many carriers commonly offer general liability as a basic coverage to heavy construction equipment insurance policies. 

Studies exploring heavy equipment and pedestrian safety are few. Nonetheless, it’s a known fact that heavy machinery causes pedestrian accidents.  A survey conducted by the US Department of Transport Federal Highway  from 1997 - 2000 states that 17% of fatalities in workplace accidents are pedestrians. The most common heavy equipment-related pedestrian accidents are:

  • Rollover/run overs

  • Vehicular collisions

  • Getting struck 

Most of the time, these accidents result in injuries that can severely affect the victim’s quality of life and require costly treatment. 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

Learn more about general liability insurance

Commercial Auto Insurance for Heavy Equipment

The law treats bulldozers, backhoes, skid steers, and other heavy equipment as transport vehicles the moment they traverse public highways. For this reason, heavy equipment insurance doesn’t provide coverage whenever heavy equipment in transit gets involved in road accidents. 

Earthmoving equipment insurance offers commercial auto insurance coverage. With this insurance policy, the policyholder can  request funds from the carrier to pay for the costs of road accidents and injuries heavy machinery causes while running on highways.

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

Read more on commercial auto insurance

Workers Compensation Insurance for Heavy Equipment

Workers compensation insurance will answer personal injury claims heavy equipment technicians, operators, and other employees file. The purpose of this policy is to shoulder the cost of medicare and lost income compensation of injured employees. For example, if one employee asks the company to reimburse his medical expenses worth $1 million and lost income worth $30,000. The employer can use their workers comp insurance policy to pay, so that there’s no need to use company funds.  Workers comp is a common policy in heavy construction equipment insurance, which covers backhoes, dump trucks, bulldozers, compactors, pavers, tower cranes, excavators, and graders.

Learn more on workers compensation insurance

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Bobtail Insurance for Heavy Machinery

Freighters, large trucks, and farm equipment such as 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. 

Compare Heavy Equipment Insurance Quotes Online

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Best Heavy Equipment Insurance Companies

Please have a look at our review of some of the best heavy construction equipment insurance companies in America. To get the best value for your money, click the 'Get Quotes' button at this page, complete the questionnaire and compare heavy equipment insurance quotes online from heavy equipment insurance companies!

Liberty Mutual Heavy Equipment Insurance

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

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 takes time to be processed

Best for: Starting construction companies that are always renting equipment
Our rating: 4/5

Progressive Heavy Equipment Insurance

Progressive's heavy equipment insurance is worth the try even though it only offers coverage for trucks.  One reason why it's great is because owners are sure to enjoy fast processing of claims. Also, progressive offers federal and state filings - documents your business need to comply to attract clients and initiate ambitious building projects.

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

Best for: Trucking companies
Our rating: 3/5

The Hartford Heavy Equipment Insurance

Hartford's heavy equipment insurance is very comprehensive. Aside from backhoe insurance, trucks, cranes, and other equipment, it also ensures handheld tools, rented equipment, and employee safety gears. You're also covered in cases of disaster too, because The Hartford's heavy construction equipment insurance policies  covers debris cleanup.

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

Best for: Large construction companies
Our rating: 5/5

State Farm Heavy Equipment Insurance

State Farm has two types of heavy equipment insurance. 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. 

Pros

  • Two type of heavy equipment insurance

  • Customizable

Cons

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

Best for: Business not in the construction industry that use heavy equipment for projects
Our rating: 4/5

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