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Contractor’s Equipment: How to Protect Your Investment

Contractor’s Equipment: How To Protect Your Investment

As a contractor, you need to protect the equipment that allows you to successfully move your business along each day. In many cases, this equipment is not only essential for meeting your goals on a daily basis, but it’s also a big commitment in terms of finances. The loss of such equipment or significant damage to it could harm your business, so you must think about how to protect your investment.

Unfortunately, there are many different instances that can cause serious damage to your equipment, like overturn, collision, fire, theft, or upset. Any one of these can threaten the ability of your equipment to deliver your projects on budget and on time. In fact, it’s estimated that losses from these incidents costs more than $1 billion every year. Even having just one piece of equipment with significant damage can halt or delay your ability to finish projects.

You need to think seriously about the benefits of covering your equipment with insurance. If you’re speaking with a New Jersey or Pennsylvania insurance advisor about the topic, it’s likely that you can purchase insurance to protect against the negative aspects of a covered loss. Equipment that can be covered might include anything that is lease, rented, borrowed, owned, or loaned. That being said, there are also things you can do in order to protect the equipment to a greater degree as well.

Training all employees regarding these extra steps to protection is extremely important. Whether it’s reviewing intended uses for various pieces of equipment or helping employees walk through inspection and security checklists, all of these actions can have a positive impact. It’s important to continue this kind of training and reminder process beyond orientation with new employees. Reinforcing these concepts on a recurring basis has major benefits short and long term for your business.

Theft is one kind of loss that you can help to prevent by always follow a few simple steps. While this list is just a basic suggestion of questions to consider, it can open the door for deeper thought and more meaningful conversation about preventing losses in general. In combination with insurance, consider the following questions:

  • Is there enough lighting on your jobsite to help prevent theft?
  • What security measures are in place at your jobsite to prevent unauthorized access?
  • How are the materials stored?
  • Are high security locks and chains in use on any piece of major equipment?
  • Which employees have access to keys, and how are you tracking who has the keys at any given time?
  • Would it be worthwhile to request that local police add the job site to their regular patrols?
  • Do you have security cameras near your equipment?

Always remember, protecting your equipment begins with you.

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