Does Builders Risk Cover Rented Equipment?

The NAIC definition includes machinery and equipment used in construction in its general builders risk description, while an illustrative form separates project property from contractor equipment. Rental contracts can impose liability for damage even where a policy does not respond. List each rented item, its value, where it will be used, and who bears the risk under the lease. Ask whether the builders risk policy covers it as project property, and check equipment floater, rented-equipment, transit, theft, and breakdown terms. Confirm any lender or lessor loss-payee requirements in writing. The rental agreement may make the hirer responsible for damage even when no builders risk coverage applies, so request proof of the lessor’s insurance and your own contractor equipment coverage. Check the builders risk property definition, rented-equipment extension, per-item limit, transit territory, and loss-payee clause against the actual equipment list before delivery to the site.