Does my Contractors Insurance Cover my Tools?

A lot of contractors call our office asking if their contractor’s insurance policy covers their tools.

 

They think, of course, that it must. What insurance policy wouldn’t cover one of the most important and useful aspects of your business? As a contractor, without your tools you cannot perform the work you are doing!

 

We educate our clients on what their policy covers, and they know the answer to this question when they get their policy.

 

Other insured’s, who work with different agencies, might not know the answer to this question. We have seen in many cases this gap in coverage not disclosed to contractors in an effort to get them the cheapest policy possible. Or maybe it was mentioned, but not in a way to understandably expose the significant risk. This is because most Business Owners Policies (BOP) or Commercial Package Policies (CPP) will cover property that is housed at a specific business location, but does not always include the equipment and tools that travel with employees to be used at job sites.

So, how can you cover your tools with your insurance policy?

 

Inland Marine Insurance is a policy that, in its simplest form, covers equipment in transit. It is often purchased by companies that do freight shipping for a living, but is sometimes overlooked by those who travel with equipment as a part of their job.

 

If you’re not concerned with the replacement cost of your hammer, drills, or nails, consider the cost of the equipment you rent. A bobcat, or tractor, is a good example as these are commonly used by contractors.  It is always an option to purchase insurance directly from the rental facility, but if you have your own policy in place (you can set specific limits on the rental coverage), and you rent this equipment regularly, you can save hundreds of dollars on insurance coverage costs.

 

And it isn’t just limited to contractors!

 

Say you repair computers, and you go pick up these computers from your customer’s houses – Inland marine can protect this equipment while it is in transit and in many cases while it is in your warehouse or repair shop.

 

When it comes to contractors, there are additional inland marine specialty policies you may want to consider. One example is Builder’s Risk. This type of coverage will protect materials and structures during new construction projects or renovations. An Installation Floater is another example of an inland marine specialty policy that may be a good policy to consider as well, as it will cover materials from the moment they are loaded into a truck until they are either installed or put to intended use.

 

Regardless, when it comes to your tools and your trade, have your insurance evaluated by a professional who understands your business. They can advise you on how to mitigate risks and find the policy that is best for you. Our experts are happy to help you at our office – simply give us a call at (916) 967-7715 for a free evaluation.

Recreational Cannabis Business Insurance

As of 2019, 11 states have legalized recreational cannabis use – Alaska, California, Colorado, Illinois, Maine, Massachusetts, Michigan, Nevada, Oregon, Vermont, and Washington.

While each of these states has their own unique framework for cannabis regulation, one thing is certain – they all need to have the right recreational cannabis business insurance coverage.

What policies are available for recreational cannabis business insurance?

Cannabis businesses face significant risk and obstacles. Some we would like to highlight for you are Theft, General Liability, and Product Liability.

Theft has been gaining attention in the cannabis industry, regardless of strict security requirements for recreational cannabis businesses. In California, Sacramento City officials asked commercial businesses to review their security protocols last January, after seeing a surge in cannabis business thefts in distribution centers. With banking solutions not quite in place, businesses hold a lot of cash, which make them prime targets for robberies. Adequate theft insurance coverage can protect from losses from burglary and robberies, helping you get back on your feet after an unfortunate event.

General Liability risks in a recreational cannabis business are similar to those of other manufacturing or agricultural businesses. Crop Failure, workplace accidents, property damage, and more are all common scenarios any of these businesses can face – and need to have a policy in place for. Depending on the type of recreational business you have, you may want to consider additional coverage for risk exposures you may face (A competent cannabis insurance expert can help you identify potential risks, call our office for a free consultation to find out what risks you may want to consider).

Product Liability is important for medical cannabis businesses, and especially important for recreational establishments. Ingestible products are gaining in popularity, as well as the risk of safety recalls. THC, a main compound in marijuana, has a psychoactive effect and if products are misrepresented, mislabeled, or harm an individual it is opening up a business for litigation.

Some states don’t require all these insurance products for your business, but we still highly recommend them. Watch your recreational cannabis business insurance policy closely as well – many insurance companies purposely exclude protection for Schedule 1 substances, which in the event of a claim would nullify your protection.

That being said, there are some companies that are working intimately with the cannabis industry to ensure that the unique hazards in this emerging industry are understood and accounted for in insurance policies. We at Lions and Coventry Insurance Services have taken time to build relationships with these companies to help advise them on what clients need. We take your protection seriously, and invite you to give our office a call for a free review of your policy – We will make sure everything you need is covered, and if not, offer solutions for you. Contact our office with any questions you may have, we would be happy to help!

 

 

 

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Here at Lions & Coventry, we will take the time to discover your needs and find you the best solution at the best rate. Contact us today!

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Monday, July 08, 2019 lcconstruction Uncategorized No comments
A lot of contractors call our office asking if their contractor’s insurance policy covers their tools.   They think, of course, that it must. What insurance policy wouldn’t cover one of the mo...
Friday, July 05, 2019 lcconstruction Uncategorized No comments
As of 2019, 11 states have legalized recreational cannabis use – Alaska, California, Colorado, Illinois, Maine, Massachusetts, Michigan, Nevada, Oregon, Vermont, and Washington. While each of these...