Last Updated: February 16, 2024, 11:45 am by TRUiC Team


Does Business Insurance Cover Equipment?

As a business owner, it's important to protect your valuable equipment and assets. But what happens if they get damaged or stolen? Does business insurance cover equipment?

The answer is that it depends on the type of insurance policy you have. 

In this guide, we'll share which business insurance policies cover equipment and how they can help protect your business.

Recommended: Next Insurance is dedicated to matching small businesses with the right policies at the best price.

A person using a forklift to load a truck.

Business Insurance Policies that Cover Equipment

Business owners who rely on equipment to run their operations understand the importance of having that equipment covered in case of unexpected damage, theft, or other unforeseen events.

Here are some common business insurance policies that cover equipment:

General Property Insurance for Equipment

General property insurance is a type of insurance that covers your business property against damage or loss caused by events like fire, theft, or weather-related incidents. 

If your equipment is damaged or stolen, general property insurance may cover the cost of repairing or replacing it.

However, it's important to note that general property insurance may not cover all types of equipment. 

Some high-value or specialized equipment may require additional coverage or a separate policy.

Commercial Auto Insurance for Business Vehicles

If your business uses vehicles for business operations, commercial auto insurance can help protect those vehicles and the equipment inside. 

This type of insurance covers damage or loss caused by accidents, theft, or vandalism.

Commercial auto insurance may also cover any equipment or tools that are permanently installed in your business vehicles. 

This includes things like specialized machinery or tools used for business purposes.

Inland Marine Insurance for Mobile Equipment

Inland marine insurance is a type of insurance that covers equipment or property that is frequently transported or moved from one location to another. 

This type of insurance can be particularly useful for businesses that operate in multiple locations or frequently transport equipment.

Inland marine insurance may cover equipment like laptops, cameras, tools, and other portable equipment that your business uses to conduct its operations. 

It can also cover equipment that is stored at off-site locations, such as a construction site.

Business Interruption Insurance for Equipment Loss

If your equipment is damaged or stolen, it can disrupt your business operations and result in lost income. Business interruption insurance can help cover the financial losses your business may incur due to equipment loss.

Business interruption insurance can cover expenses like lost income, rent, utilities, and other operational costs that your business may incur while you are replacing or repairing damaged equipment. 

This type of insurance can be critical for small businesses that rely heavily on their equipment to conduct their operations.

How to Start an LLC Tip Icon

Recommended: Read our Cheapest Business Insurance Companies of 2024 review to find the best coverage at the lowest rate.

FAQs

It depends on the type of insurance policy you have. General property insurance, commercial auto insurance, inland marine insurance, and business interruption insurance are some examples of business insurance policies that can cover equipment.

General liability insurance typically does not cover equipment damage or loss. It is designed to protect your business against claims of bodily injury, property damage, and advertising injury caused by your business operations.

To protect your equipment, you may need to consider additional insurance coverage, such as commercial property insurance, which can help cover the cost of repairs or replacement of damaged or stolen equipment.

Business insurance can cover a wide range of equipment, from high-value machinery to portable equipment like laptops and cameras. Make sure to review your policy and speak with your insurance agent to ensure that your equipment is adequately covered.

Review your insurance policy and speak with your insurance agent to ensure that your equipment is covered. Make sure to provide accurate information about the type and value of your equipment to ensure that you have the right coverage.