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  • Brendan Kelly

What is Contractors Insurance?

Contractors Insurance is a term used to describe various policies that, together, provide comprehensive coverage for contractors. This insurance coverage offers protection from unforeseen risks that may occur during a project, such as accidental injury or property damage. Contractors' insurance may be required by law, with several states requiring contractors to carry insurance, especially if they have employees or work on certain projects.



The most common form of cover that most contractors will need is contractors' liability insurance or general liability insurance, which ensures protection in the event of negligence claims related to third-party injury and property damage. This insurance can help safeguard contractors against claims which may damage them and their business. Most contractors will also benefit from contractors' equipment insurance.


What is Contractors' Equipment?


It is important not to rely on just one form of insurance for a contractor to be entirely protected. Contractors will often need multiple policies to be wholly protected. A contractors equipment insurance policy falls under inland marine insurance, protecting tools and equipment transported from one location to another. This type of coverage offers protection from financial debts, which may occur if the equipment is lost or damaged.


Liability coverage can help with insuring contractors equipment that remains at a fixed location. However, in the case of mobile equipment, it will need separate cover. A standard contractors equipment policy is written on an all-risks basis, whereby only perils that are specifically excluded are not covered. Theft, fire, breakdowns, vandalism and floods are all types of exposures typically covered under a contractors equipment insurance policy.



Items that fall under the category of contractors' equipment insurance include:


  • Forklifts, concrete mixers, bulldozers

  • Hand tools

  • Generators and cables


Does AM RE offer Contractors Equipment?


As a reinsurance intermediary, we provide reinsurance capacity for Inland Marine classes which include Contractors Equipment portfolios.

We evaluate this business through a thorough examination of the historical experience using in-house analytics, innovative loss control solutions, and a deep understanding of current market rates.​

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