Does Builders Risk Cover Contractor Equipment?

Usually not for a contractor’s mobile equipment. Builders risk focuses on project property, while the NAIC describes a separate equipment floater for movable items such as cranes and drills; check the equipment schedule and rented-property terms. 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.