Does Builders Risk Cover Contractor Equipment?

Builders risk is aimed at the building and property intended for the project, while the NAIC describes contractor equipment floaters as covering movable items such as cranes, mixers, and drills. Individual builders risk forms may define equipment used in construction differently. Do not infer that a crane, generator, or excavator is covered because it operates at the site. Check ownership, the policy’s covered-property definition, transit and offsite terms, and any equipment breakdown exclusion. Compare the contractor’s inland marine schedule and rented-equipment obligations with the builders risk declarations. Contractor-owned mobile equipment is commonly insured through a contractor’s equipment floater, which the NAIC describes separately from builders risk property. Ask for the equipment schedule and determine whether it covers the item while working, parked, transported, or stored. For a rented crane or generator, compare the lease’s damage obligation with the policy’s rented-equipment provision and deductible.